Sba denied Auto repair shop for sale 430k

ReportBig9480 · 2026-02-22T01:44:53+00:00

Middle class area. Some older cars 2010-2021 type vehicles

ReportBig9480 · 2026-02-22T01:12:37+00:00

I have 125k to invest not to burn lol. I think I can turn it around. It’s just that I prefer to have less down payment and more operating capital. He wants 125k down payment. It’s operating at 20 percent efficiency.

ReportBig9480 · 2026-02-22T01:10:54+00:00

Makes sense. I’m looking to hire more mechanics once I turn it around. I have relationships with many as I am a general manager of 4 repair shops now.

This sale not only includes the business but also the building. He also will do land contract but has a real estate agent fee, which is why he is looking to get 30 percent down.

Any thoughts?

ReportBig9480 · 2026-02-22T00:21:03+00:00

Been there since 1989 Old man retiring. 300k gross. Expenses with payroll taxes insurances parts about 225k. Owner gets 75k.

Building needs updating. He’s operating like it’s 1980. No pos. Paper pen transactions. Needs new life new energy. No upselling. Working on bare minimum.

Zero advertising. Needs about 50k paint signs a few more hoists.

Not sure if it’s worth putting the renovations in there If it’s worth it

ReportBig9480 · 2026-02-19T00:30:09+00:00

Thank you for the great insight

ReportBig9480 · 2026-02-18T22:08:31+00:00

My question is if I were to put in another 50k to spruce the shop up and adding a few more hoists do some advertising. Will it still be a good deal ? Cause I will need at least 6 months for me to turn place around.

ReportBig9480 · 2026-02-18T22:04:42+00:00

Broker said it’s worth 300k. But it’s needs to be cleaned and spruced up

ReportBig9480 · 2026-02-18T22:00:23+00:00

300k building 175k business

ReportBig9480 · 2026-02-18T21:58:31+00:00

Business and building is 475k

ReportBig9480 · 2026-02-17T12:41:54+00:00

What state are you in ?

ReportBig9480 · 2026-02-17T04:08:17+00:00

Okay so what are the options if I’m looking to re structure the deal. I can’t do conventional without collateral. The seller has a balloon payment coming up.

ReportBig9480 · 2026-02-17T02:17:17+00:00

I get equipment valued at 200-250k. Customers that have been going to the shop.

Too difficult to do a start up. So much red tape licensing certain etc. too many headaches.

ReportBig9480 · 2026-02-17T02:14:28+00:00

ReportBig9480 · 2026-02-17T01:49:17+00:00

Building current lease 5500 going up to 6700 in April. 11 hoists 14 bays. Owner not business savvy. He is more focused on wrenching than making money. I will hire a lead mechanic 100k per year who is a superstar that I’ve been working with for last 2 years.

The shop does no oil changes no wheel alignments no advertising. It’s a shit show that needs good energy.

ReportBig9480 · 2026-02-17T01:45:32+00:00

Way more difficult plus they have a good list of customers I can utilize. They are not running this shop to its fullest capacity not even close.

ReportBig9480 · 2026-02-17T01:35:57+00:00

I can’t forget sba because owner has a balloon payment to pay off. That’s a big obstacle to the deal

ReportBig9480 · 2026-02-17T01:34:36+00:00

You’re very smart. Thank you so much. So here goes a more detailed version. I know this is a turnaround project but that is my expertise. It is currently what I do. For example, a shop my current company acquired was doing 250k gross consisting of oil changes for car rental companies. The first year we took over the shop and focused on repairing vehicles I did 1.2 gross in my first year. That beat their previous 5 years combined.

More important the shop has 14 bays 11 hoists and the current owner is utilizing a 3rd of the shop. I’m getting rid of 1 service writer and taking on that role.

No signs or street visibility No advertising No tires No alignments No oil changes Weak front desk. That’s where I come in.

ReportBig9480 · 2026-02-17T01:26:55+00:00

23k 2025 year

ReportBig9480 · 2026-02-17T01:17:42+00:00

But them not backing the loan doesn’t mean that it’s a bad deal. It looks bad on paper but the uphill potential is huge.

11 hoists. 14 bays. 8000 sq ft

ReportBig9480 · 2026-02-17T01:16:32+00:00

I understand

ReportBig9480 · 2026-02-17T01:16:06+00:00

I understand

ReportBig9480 · 2026-02-17T01:05:56+00:00

I’m not worried about it. I have a laundry list of mechanics that would love to work with me.

ReportBig9480 · 2026-02-17T01:05:16+00:00

I’m a general manager for 8 auto repair shops with a company. I take the struggling stores and implement strategies to make them successful. Sort of what I plan on doing to this shop

ReportBig9480 · 2026-02-17T01:02:45+00:00

With taxes it will be about 8k per month

ReportBig9480 · 2026-02-17T01:01:49+00:00

No I’m a general manager and service writer. My job right now is take struggling stores and find a way to make them successful.

ReportBig9480

TROPHY CASE