Market size and growth

The U.S. general auto repair industry has grown steadily over the past decade, driven by macroeconomic trends such as longer vehicle lifespans, higher new car prices, and increased vehicle ownership. In 2025, the market is valued at approximately $91 billion with an expected CAGR of roughly 1.6% through 2028. With the average vehicle age now 12.8 years, consumers are more willing to invest in repairs and preventive maintenance to extend the useful life of their vehicles. Additionally, inflationary pressure and the supply chain bottlenecks experienced in recent years have made new vehicle acquisition more difficult and expensive, further incentivizing repairs.

Industry structure

The industry is defined by its fragmentation. Data shows that 84% of general auto repair shops are independently owned and operated, with the top four players holding less than 5% combined market share. Franchises such as Midas, Meineke, and Pep Boys operate alongside tens of thousands of mom-and-pop businesses and regional chains. This lack of concentration creates an inviting landscape for operators looking to enter the market by buying established, profitable auto shops.

Services offered

In the automotive repair industry, shops typically fall into one of two buckets, based on the types of vehicles they service.

“You’re typically either going to be a European shop, which are your Audis, BMWs, Volkswagens, etc, or you’re going to be more of what we were: the Asian and the domestic vehicles.”—Gary, the previous owner of Autotech, a Maryland-based automotive repair shop

As a buyer, it’s important to consider the type of shop you’re interested in. While European shops can charge significantly more for their services, the investment is going to be “twice the money—including specialty tools, different technologies, and higher labor costs for your techs,” Gary says.

Regardless of which types of vehicles you service, auto repair shops usually offer the following:

Routine maintenance: Routine maintenance is the bread and butter of most general auto repair shops. This includes services such as oil changes, tire rotations, filter replacements, fluid top-offs, and general checkups. “Oil services are a commodity—your margins are low, but they give you permission to check the brakes, check the suspension, and start building trust.” Gary explains. “We could do a full check and tire rotation in 20 minutes. Customers were shocked. That kind of efficiency brings them back.”

These tasks are both frequent and predictable, offering shops a steady stream of recurring revenue. As vehicles age, regular maintenance becomes even more critical, which enhances customer retention and builds long-term trust with local clientele.

Brake and suspension repairs: Brake and suspension work is another high-demand service area, necessary for both vehicle safety and performance. Brake jobs typically include pad and rotor replacements, fluid bleeding, and sometimes caliper repair or replacement. Suspension repairs involve components like shocks, struts, control arms, and bushings. Because these systems degrade over time and use, especially in older vehicles or those operated in harsh climates, they provide consistent, high-margin opportunities for repair shops.

Engine diagnostics and repairs: Modern vehicles are equipped with increasingly complex electronic systems and onboard diagnostics. When the dreaded “Check Engine” light appears, consumers rely on shops to accurately diagnose and repair the issue, whether it's a faulty sensor, misfiring spark plug, or something more serious. “At one point, I had six different diagnostic tools—Ford, GM, Subaru, Honda, plus two generics—about $100,000 in capex before the annual subscriptions.” Shops that invest in up-to-date diagnostic equipment and employ certified technicians are better equipped to handle this work and command higher prices.

Electrical system troubleshooting: Today’s cars function like computers on wheels. Electrical problems, which may involve alternators, batteries, wiring harnesses, and fuse panels, are common. A vehicle might come in with something as simple as a dead battery or as complex as a malfunctioning ECU (engine control unit). Shops with electrical expertise are increasingly sought after, as these repairs require a higher level of technical skill and specialized equipment.

Air conditioning and heating services: Repair shops perform diagnostic and recharge services on climate control systems and replace components such as compressors, condensers, and blower motors. Given the seasonal nature of this work, many shops experience a spike in A/C-related visits in summer and heating system repairs in winter, creating cyclical revenue patterns that can be planned for.

State inspections and emissions testing: In states that mandate annual inspections or emissions compliance, these services become a stable and often state-regulated revenue source. Shops authorized to perform inspections often benefit from bundled service work, as failed inspections frequently lead to follow-up repairs. This also drives foot traffic and customer acquisition for other services.

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