Lauren Posted August 11, 2017 Report Share Posted August 11, 2017 Hey guys need some input. Thinking about opening another business. I found an old auto shop with 6 bays with lifts for a good price. I'm thinking about buying it. My one car garage isn't cutting it anymore. I'm flipping cars regularly now and it would be nice to have a shop. So my plan is to use it to flip cars, offer repairs for certain cars like mini coopers or vw Audi or BMW. I'd also like to see about having one mechanic on hand always. Now that is 3 bays. The other half of the idea is to rent the other three lifts by the hour. $20 an hour rental. Its great for enthusiast like us who don't have a lift and want to complete a task. Do you guys think there would be enough interest in the Columbus area to support something like this ? Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted August 11, 2017 Report Share Posted August 11, 2017 the rental thing is something people really want but the insurance is SERIOUSLY expensive.. Quote Link to comment Share on other sites More sharing options...
Lauren Posted August 11, 2017 Author Report Share Posted August 11, 2017 Insurance requirements are typically set by the landlord. I would be buying this building not renting. Now if the state has requirements I'm not aware of that's different. I used to carry a 1/2 million policy on my dance studio which was 75 dollars a month. My current landlord requires a 2/3 million with a 3 million umbrella and a bunch of other useless requirements which my premium is now 480 a month. Ugh Quote Link to comment Share on other sites More sharing options...
Zx2guy19 Posted August 11, 2017 Report Share Posted August 11, 2017 $480 a month? Christ, I carry $2M for my rental business and it's like $40 a month. Granted I pay like $700 a month for all the property insurance, but still. Quote Link to comment Share on other sites More sharing options...
o0n8 Posted August 11, 2017 Report Share Posted August 11, 2017 I swear there was a thread on this exact thing about a year ago, I did find the one where Cordell a brainstorming thread about opening a shop. http://www.columbusracing.com/forums/showthread.php?t=110583&highlight=lift+rent I think the biggest issues would be insurance because of the potential risk of have some one using tools, possibly power tools and not being trained mechanic. I'm not in insurance but that seems like a big liability. The other issue you would definitely run into is have a car up on a lift, half apart and something breaks/new parts don't fit etc. and the car can't be finished before close or possibly until the part arrives days later. Quote Link to comment Share on other sites More sharing options...
Lauren Posted August 11, 2017 Author Report Share Posted August 11, 2017 Well they would pay every hour it was on the lift. I'm still being compensated. They could easily put old parts back on or throw wheels on it and roll it outside. Keep the ideas and concerns coming. Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted August 11, 2017 Report Share Posted August 11, 2017 I've been on CR for 15 years...this gets discussed ALOT (especially in winter, where it's cold and alot of us OG CR guys back in the day were still lying on cold concrete working on DD's and fun cars). I certainly think this is a great idea, but knowing a few guys with shops and private garages, you are always having to monitor tools/parts, make sure equipment is used correctly, and cleaning up spills/shavings/packaging. Even with these generous resources available to me, I still end up doing 99% of my own work or paying a guy with a shop to do it. Do you see how ultimately you'll be just competing against other shops to make sure your bays are making enough money first before you rent out space? It'll end up being like every other greasemonkey garage.... This goes right up there with a place like HOONIGAN at Long Beach, where you literally have guys with a cot or couch just sh!t/showering/shaving at the garage. I've got a 2000 Cadillac Eldorado in my driveway with no front end because a buddy is trying to take the Northstar V8 to swap into his Fiero. This thing has been sitting all summer taking up space. I'm still OK with it, but if this was a bay that you were paying money for you'd have a really tough time with this guy....and you make no money....and then he sh!ts all over you on FB.... Just seems like a lot of noise. Quote Link to comment Share on other sites More sharing options...
Geeto67 Posted August 11, 2017 Report Share Posted August 11, 2017 I'm not saying it's a good idea or a bad idea, but there was a time when this business model was viable and now it isn't. It wouldn't hurt to find out why. What was the thing that caused them to disappear? First step would be to write a business plan. This sets all your assets and liabilities out on paper, maybe something becomes readily apparent, maybe it doesn't and you need to do market research. This is one of those things were people talk about it a lot as a "wouldn't it be great" idea, but if you are serious then put pen to paper and do the homework. I know that a few places in NYC have had success with this model with motorcycles but they run it more like a club and motorcycle parking/storage pays the majority of the bills. Something you may have not considered, I don't think you can fly under the radar as a "car flipper" anymore. Having a garage and a spot might open you up to the requirements of being a used car dealer and that's a whole different game. Quote Link to comment Share on other sites More sharing options...
o0n8 Posted August 11, 2017 Report Share Posted August 11, 2017 Brainstorming some rhetorical questions I would want to know if I rented a space or maybe you haven't thought of while thinking about this. Weekend Hours? (probably the easiest time for most enthusiasts) Willing to be there or pay someone to be there on weekends? Do I have to have my car off the lift by a certain time for the next guy? If the guy before me runs over and cuts into my time or basically cancels my time block, how do you fix the situation? Notification system for the above situation so someone does show up and have to wait? What tools and safety equipment are available or do I have to bring my own? Does it cost extra to use any in-house tools? How close are you to a parts store if I need to make a parts run? Is there a "shop truck" available for a parts run? Are certain jobs not allowed? Fluid and parts disposal extra? Discount for a big block of hours/days? Willing to take over someone's mess if they can't finish? Where's the closet fire extinguisher? Bathroom? Can I rent the space to work on someone else's car because I'll do it cheaper than your mechanic a bay over? If not, how would you "stop" it? Storage fee if someone leaves there car on the lot for an extended period of time? Quote Link to comment Share on other sites More sharing options...
BigOxley Posted August 11, 2017 Report Share Posted August 11, 2017 I think this would only work if you have the club/membership, and they'd probably have to be rich. Like a Car-ntry Club Quote Link to comment Share on other sites More sharing options...
iwashmycar Posted August 11, 2017 Report Share Posted August 11, 2017 Two words: Wash bay Quote Link to comment Share on other sites More sharing options...
LJ Posted August 11, 2017 Report Share Posted August 11, 2017 If you flip cars out of there you better be prepared to become a fully licensed dealership and check the zoning and ensure it allows a car lot. Quote Link to comment Share on other sites More sharing options...
criitter7 Posted August 11, 2017 Report Share Posted August 11, 2017 I looked into it before and it was a horrible idea on paper. Only way to make money on a 6 bay shop is to open a repair shop or rent building to someone who opens a repair shop Quote Link to comment Share on other sites More sharing options...
BStowers023 Posted August 11, 2017 Report Share Posted August 11, 2017 I bet you could make a profit if you sold drugs out of the building Quote Link to comment Share on other sites More sharing options...
RyM3rC Posted August 11, 2017 Report Share Posted August 11, 2017 The rentable garage business model still works in OTHER states, and every time I read on a forum "rented a lift..." I miss having that facility locally. From what I've read usually it's a service bay with lift, tire mount/balance stuff, hand tools, etc all available. $25-$40/hr seems to be pretty common Quote Link to comment Share on other sites More sharing options...
Supplicium Posted August 11, 2017 Report Share Posted August 11, 2017 Can you make an agreement that is signed by the customer to transfer any liability to the customer? Might take more steps than that but im just thinking out loud. Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted August 11, 2017 Report Share Posted August 11, 2017 There is also the EPA issue too. All those fluids have to be dealt with. Quote Link to comment Share on other sites More sharing options...
Lauren Posted August 11, 2017 Author Report Share Posted August 11, 2017 My best friend lives in phoenix and takes his z06's and vipers to a local place with a rented lift to do all his work. This is where I got the idea. The shop would have air and air tools, speciality tools to rent and wheel and tire eventually. The business model would be set up as strictly a rentable shop by then hour. Not selling cars. Not advertised to public as a garage etc. If a local mechanic wanted to run his business out of there so be it. The main source of Mo eyes would be renting lift and tool rental. My dance studio rents the ballroom to teachers per 45 mins. This same principal would apply to lifts. My attorney would create a waiver liability form everyone would sign basically taking risk from me to whoever is working. That's a given. I do like the country try club but for cars idea. A membership Quote Link to comment Share on other sites More sharing options...
Mallard Posted August 11, 2017 Report Share Posted August 11, 2017 My best friend lives in phoenix and takes his z06's and vipers to a local place with a rented lift to do all his work. This is where I got the idea. The shop would have air and air tools, speciality tools to rent and wheel and tire eventually. The business model would be set up as strictly a rentable shop by then hour. Not selling cars. Not advertised to public as a garage etc. If a local mechanic wanted to run his business out of there so be it. The main source of Mo eyes would be renting lift and tool rental. My dance studio rents the ballroom to teachers per 45 mins. This same principal would apply to lifts. My attorney would create a waiver liability form everyone would sign basically taking risk from me to whoever is working. That's a given. I do like the country try club but for cars idea. A membershipHonestly, your best bet is to treat it as a club. This model has been done before and they also use it for "maker spaces" all over the country. Those guys have table saws, bands saws, etc. so they must have figured out the insurance thing. They also have to give training on each piece if equipment before you're allowed to use it. And, yeah, this topic come up a lot! Sent from my SM-G925V using Tapatalk Quote Link to comment Share on other sites More sharing options...
Jewtoys Posted August 11, 2017 Report Share Posted August 11, 2017 Honestly, your best bet is to treat it as a club. This model has been done before and they also use it for "maker spaces" all over the country. Those guys have table saws, bands saws, etc. so they must have figured out the insurance thing. They also have to give training on each piece if equipment before you're allowed to use it. And, yeah, this topic come up a lot! Sent from my SM-G925V using Tapatalk I was just about to post this. I know someone who does this, geared towards motorcycles. Charges a monthly fee, to belong to the "club" Shop hours are set in stone. Also has a liquor license, and the place doubles as a small bar/hangout. Neat little spot, but nothing you're going to get rich at. Also, you will need a dealers license if you're flipping cars. Quote Link to comment Share on other sites More sharing options...
Green Bastard Posted August 12, 2017 Report Share Posted August 12, 2017 I think the state requires you to have a dealers license if you sell more than 6 cars in your name in a year, just something to think about. Also, the liabilities involved in having a customer work on their own cars would be enough to make me not want to do it. If anyone injures themselves on your property, you are liable (I'm not sure if a clause in something they have to sign would protect you or not), again just something to think about. Quote Link to comment Share on other sites More sharing options...
Lauren Posted August 12, 2017 Author Report Share Posted August 12, 2017 I have 4 LLC plus personal name. I guess I'm covered from 24 cars a year Quote Link to comment Share on other sites More sharing options...
cstmg8 Posted August 12, 2017 Report Share Posted August 12, 2017 The club idea is interesting if it gives you a way around some of the restrictions. $10 a month and you get "member rates" on garage rental. You can call it planet mechanics. Sent from my XT1585 using Tapatalk Quote Link to comment Share on other sites More sharing options...
RS69 Posted August 12, 2017 Report Share Posted August 12, 2017 I like the idea, but you might be better off having/rent space to someone who wants to run a shop for the space/lift/bays you are not using or hiring some mechanics to work for you under your shop. Quote Link to comment Share on other sites More sharing options...
cstmg8 Posted August 21, 2017 Report Share Posted August 21, 2017 Is this open yet? I have a bunch of suspension parts coming, and a lift would sure help. Sent from my XT1585 using Tapatalk Quote Link to comment Share on other sites More sharing options...
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