Auto Repair Shop Operations
Complete operational reference for independent auto repair shops. Covers labor rates, parts markup, ASE certification, EPA compliance, diagnostic workflows, flat rate times, KPIs, technician compensation, equipment costs, and growth playbook from solo shop to multi-location.
| Region | General Repair | Diagnostic | Specialty | Dealer Comparison |
|---|---|---|---|---|
| Northeast US | $125-165/hr |
| $150-185/hr |
| $165-210/hr |
| $175-250/hr |
| Southeast US | $95-135/hr | $120-155/hr | $140-180/hr | $150-220/hr |
| Midwest US | $100-140/hr | $125-160/hr | $145-185/hr | $155-225/hr |
| West Coast US | $135-180/hr | $155-200/hr | $175-230/hr | $190-275/hr |
| Mountain/Plains | $90-130/hr | $115-150/hr | $135-175/hr | $145-215/hr |
| Part Cost | Standard | Competitive | Premium |
|---|---|---|---|
| $0-$10 | 100-200% | 80-150% | 200-300% |
| $10-$50 | 75-125% | 60-100% | 125-175% |
| $50-$200 | 50-80% | 40-65% | 80-120% |
| $200-$500 | 35-55% | 30-45% | 55-80% |
| $500+ | 25-40% | 20-35% | 40-60% |
Target blended parts margin: 45-55% gross.
| Cert | Area | Renewal |
|---|---|---|
| A1 | Engine Repair | 5 years |
| A2 | Automatic Transmission | 5 years |
| A3 | Manual Drive Train | 5 years |
| A4 | Suspension/Steering | 5 years |
| A5 | Brakes | 5 years |
| A6 | Electrical/Electronic | 5 years |
| A7 | Heating/AC | 5 years |
| A8 | Engine Performance | 5 years |
| Master | All 8 A-series | 5 years |
| L1 | Advanced Engine Performance | 5 years |
Pay premium: $2-5/hr per cert, $8-12/hr for Master.
| Regulation | Penalty |
|---|---|
| Clean Air Act 609 (refrigerant) | $44,539/day |
| RCRA Hazardous Waste (oil, solvents) | $70,117/day |
| Clean Water Act (discharge) | $56,460/day |
| OSHA General Duty (lifts, chemicals) | $16,131/violation |
| SPCC Plan (oil storage >1,320 gal) | $25,000/day |
Non-negotiable: EPA 608/609 for AC techs, used oil hauler contract, antifreeze recycling docs, parts washer solvent tracking, tire disposal records.
| Service | Book Time | Revenue at $140/hr |
|---|---|---|
| Check engine diag | 1.0 hr | $140 |
| Oil change (synthetic) | 0.5 hr | $70 + $35 parts |
| Brake pads (axle) | 1.0-1.5 hr | $140-210 + parts |
| Timing belt | 3.0-6.0 hr | $420-840 + parts |
| Transmission service | 1.0 hr | $140 + $80 fluid |
| AC recharge (R-1234yf) | 1.0 hr | $140 + $60-120 |
| 4-wheel alignment | 1.0 hr | $140 |
| Strut pair | 2.0-3.0 hr | $280-420 + parts |
| Metric | Target | Warning |
|---|---|---|
| Effective labor rate | >$130/hr | <$110/hr |
| Tech productivity | >85% | <75% |
| Tech efficiency | >100% | <90% |
| Parts-to-labor ratio | 0.8-1.2 | <0.6 or >1.5 |
| Average repair order | >$350 | <$250 |
| Car count/bay/day | 2.0-2.5 | <1.5 |
| Gross profit margin | >55% | <45% |
| Customer return rate | <2% | >4% |
| Bay utilization | >80% | <65% |
| Role | Rate | Annual |
|---|---|---|
| Lube tech | $15-20/hr | $31K-42K |
| B-tech (2-3 ASE) | $22-30/hr | $46K-62K |
| A-tech (5+ ASE) | $30-42/hr | $62K-87K |
| Master tech | $38-55/hr | $79K-114K |
| Service advisor | Base + 3-8% GP | $55K-95K |
| Item | Cost | Lifespan |
|---|---|---|
| 2-post lift (10K lb) | $4,500-8,000 | 15-20 yr |
| Alignment lift + machine | $30K-70K | 10-15 yr |
| Pro scan tool | $3K-12K | 5-8 yr |
| Tire changer + balancer | $6.5K-15K | 10-15 yr |
| AC machine (R-1234yf) | $4K-8K | 8-12 yr |
| 4-bay total startup | $150K-350K | — |
| 8-bay total startup | $300K-650K | — |