8 Tips to Buying a Profitable Mechanics in Australia

8 Tips to Buying a Profitable Mechanics in Australia

Buying a mechanical workshop is a great way to enter a reliable, in-demand industry.

With over 21 million registered vehicles in Australia, there’s no shortage of cars needing regular servicing, repairs, and inspections. But if you're planning to buy a mechanics, it's important to look beyond the grease and tools and understand what makes one truly profitable.

Whether you're looking for a small owner-operated garage or a large industrial setup, it's important to know what you're getting into. Here are 8 key tips to help you buy the right mechanical business, plus examples of what’s currently on the market and how much you can expect to pay.

 

How Much Does it Cost to Buy a Mechanic Business?

 

The cost of buying a mechanic business in Australia can vary significantly depending on the size, location, brand, and type of services offered. The average price of a mechanic on Bsale is $600,000.

Smaller, owner-operated workshops generally fall in the range of $150,000 to $400,000.

These businesses typically cater to local customers and may have a small team or be run solely by the owner. For example, the UltraTune Franchise in Brisbane, QLD is priced at $350,000 + SAV and includes the support of a national franchise network, established systems, and a customer base of both private and fleet vehicles.

Larger, more complex operations or workshops servicing commercial vehicles tend to command higher prices.

These may include significant assets, multiple service bays, and a team of qualified mechanics. The Heavy Vehicle Workshop in Bunbury, WA, listed at $850,000, is a good example. It’s a specialised industrial business that services heavy vehicles and machinery, with government contracts and a comprehensive set-up.

Premium workshops like this (especially those with strong contracts or the option to purchase the property), can sell for over $2 million in some cases, particularly if they’re positioned in high-demand areas with minimal competition.

 

1. Look for a Strong History and Financials

 

The foundation of a profitable mechanic business lies in its financial performance and operating history. Before buying, ask for the last 2–3 years of financial records, including profit and loss statements, BAS, and wage reports. You want to see stable or growing revenue, strong gross margins (often around 60–70%), and a solid bottom line after expenses.

The big question is, how much can a mechanic make?

In Sydney's North Shore, an auto-repair shop has made over $200,000 profit in the last 6 months of 2024, and is a great example of an owner-operator model where the buyer likely works in the business day-to-day. Over in WA, this mechanic with a busy workshop has a high turnover and multiple revenue streams and it likely supports a team of mechanics. While net profit isn’t disclosed, they are making a healthy turnover of $800,00 P.A. In Rockingham, a mechanic has reported profit of half a million dollars indicating a large, highly efficient operation, likely with multiple staff, advanced systems, and strong repeat trade or fleet contracts. 

When reviewing a business’s financials, pay attention to labour costs, parts and materials and revenue diversity.

It's a good idea to consider the owners role as well. Will you need to replace the owner as a worker, or can you manage without much day to day interference? If you're not a mechanic yourself, higher-profit workshops with strong staff in place (like the Rockingham listing) may offer more flexibility and less hands-on involvement.

 

2. Prioritise a Prime Location

 

Workshops in high-traffic areas, industrial zones, or near residential suburbs tend to do well. Visibility, access to main roads, and proximity to public transport or local businesses can make a big difference in walk-in trade and repeat customers.

Being close to residential suburbs or major roads means people can conveniently drop their cars off before work or pick them up afterward, which helps build repeat business.

Proximity to public transport can also be a big plus, especially in metro areas where customers may leave their vehicle and need to commute elsewhere during the day. 

In regional or rural areas, the dynamic can be a bit different. A workshop might not see the same volume of daily traffic, but if it's one of only a few in the area and has been around for years, it may have an incredibly loyal customer base and minimal competition. Some regional workshops even pick up contracts with local councils, emergency services, or transport companies.

 

3. Review the Equipment and Layout

 

From hoists and diagnostic tools to brake lathes and A/C servicing kits, a well-equipped workshop reduces your upfront capital expenditure.

This thriving automotive workshop in Sydney, for example, includes modern facilities and enough space for multiple technicians to work efficiently.  It includes multiple service bays, modern equipment, and a spacious premises in an established area.

You need to ask if the stock and equipment is included in the sale price, or if it will be included at an additional cost. 

 

4. Understand Licensing and Industry Compliance

 

In Australia, auto repairers must meet various state and federal regulations. Most mechanics require:

• A Motor Vehicle Repairer Licence (state-based)
• Qualified and licensed technicians (e.g., for A/C or roadworthy checks)
• Environmental compliance (waste oil disposal, chemical handling)

Franchise businesses like Ultra Tune typically help ensure all licences and procedures are in place, which can ease the transition for new owners.

 

5. Evaluate the Team and Their Experience

 

A skilled and reliable team can make or break a mechanic business, especially during and after a change of ownership. When you’re buying a workshop, it’s essential to understand who’s on the team, what roles they play, and whether they plan to stay on after the sale.

Start by asking for a breakdown of the current staff, how many mechanics are employed, their qualifications, whether there’s an apprentice, and who handles front-of-house duties like bookings, invoicing, or customer service. Also, find out if there’s a workshop manager or if the owner handles everything themselves. 

One of the most important questions to ask is: will any staff be leaving once the business is sold?

If key employees  are planning to move on, it could impact both day-to-day operations and revenue.

Mechanics often build strong relationships with their clients, and many customers return specifically because they trust a particular person to service their vehicle. Losing a familiar face can result in lost business, particularly in local or regional areas where trust and reputation are everything.

Ask about staff contracts, wages, and entitlements, since these are responsibilities you’ll likely take on after the sale. You’ll also want to understand whether there’s room to grow the team or whether the workshop is already operating at capacity.

 

6. Check the Customer Base and Contracts

 

A steady flow of customers is key to long-term profitability. Ask about customer retention rates, if there are any fleet or corporate contracts, and the types of vehicles that are serviced.

A diversified customer base gives you stability. If the mechanic currently only services one type of client, investigate to see if the ability to expand is there. Try not to rely on one or two big contracts, because if they fall through, you could see your profit be slashed overnight.

 

7. Look Into the Digital Side

 

In today’s market, a mechanic’s online presence plays a big role in attracting and retaining customers.

While word-of-mouth is still powerful, most people search for services online, read reviews, and expect easy booking options.

A workshop with a professional website, online booking system, active social media pages, and strong Google reviews is likely to stand out from the competition. Digital tools like cloud-based invoicing, service reminders, and customer databases also improve efficiency, can encourage repeat customers, and make day-to-day operations easier to manage.

If the business has already invested in these systems, it shows a level of forward-thinking that can help maintain and grow the customer base after the sale.

 

8. Explore the Growth Opportunities

 

Think long term. Could you add mobile servicing, introduce new services like tyres, batteries, or vehicle inspections? Could the business hire an apprentice and take on more jobs, or open on weekends and extend hours?

Look at what competitors in the area are doing, and what they’re not doing. Even well-established workshops often have room to grow with fresh energy and a new perspective.

 

Buying a mechanic business in Australia offers strong potential, but it pays to do your research. Whether you want a small local workshop or a large-scale heavy vehicle operation, knowing what to look for (and what to avoid) can help you make a confident decision.

Always consult with professionals familiar with the industry to help assess risk and value before making a purchase.

 

Tags: guide buying

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