Equipment Financing for Auto Repair Shops
That alignment machine costs $35,000 but would add 15 jobs per week. A new lift runs $20,000 but yours is costing more in downtime than payments would be. Equipment financing preserves the working capital you need for parts inventory and payroll while building the shop your business requires.
How much funding do you need?
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Auto Repair Equipment Economics
Shop equipment represents significant investment. Smart equipment decisions directly impact service capability, efficiency, and revenue potential.
Equipment Cost Reality
Quality lift: $8,000-$25,000. Alignment machine: $20,000-$60,000. Diagnostic scanner: $5,000-$15,000. Tire equipment: $10,000-$30,000.
Revenue Impact
A $35,000 alignment machine generating $150/job at 15 jobs/week produces $117,000 annually. Equipment pays for itself quickly.
Useful Life
Quality shop equipment lasts 15-25 years. Financing over equipment life makes payments very manageable.
Section 179
Auto repair equipment qualifies for Section 179 deduction. Financed equipment qualifies.
The Auto Repair Equipment Challenge
Shop equipment requires significant investment. Financing preserves operating capital.
Cash vs. Equipment Needs
Purchasing a $40,000 alignment machine outright depletes parts inventory capital.
Lost Revenue Opportunity
Turning away alignment work because you lack the equipment. Each turned away job is lost revenue.
Equipment Aging
Old lift is slow. Diagnostic tool does not cover new vehicles. Outdated equipment limits capability.
Expansion Blocked
Space for another bay but need equipment to utilize it.
Multiple Equipment Needs
Complete bay setup requires lift, tire equipment, diagnostic tools. Cash purchasing everything is impractical.
Finance Equipment, Preserve Working Capital
Equipment financing structures payments across equipment useful life while keeping working capital available for parts and payroll. The equipment itself secures the financing.
100% Financing Available
Finance the full equipment cost for qualified shops. No large down payment required.
Terms to 60 Months
Spread payments across equipment useful life. 5-year terms match shop equipment longevity.
Equipment as Collateral
The shop equipment secures the financing. No need to pledge additional assets.
New and Used
Finance brand new equipment from dealers or quality used equipment.
Fast Approvals
Equipment opportunities do not wait. Get approval in 24-72 hours.
Tax Benefits
Financed equipment may qualify for Section 179 deduction.
Auto Repair Equipment Financing Scenarios
Lifts
Two-post, four-post, scissor lifts for vehicle service.
Typical funding: $8K-$30K
Alignment Equipment
Alignment machines and related wheel service equipment.
Typical funding: $20K-$60K
Diagnostic Tools
Scanners, diagnostic systems, and software.
Typical funding: $5K-$20K
Tire Equipment
Changers, balancers, and tire service equipment.
Typical funding: $10K-$30K
Complete Bay Setup
Full equipment package for new service bay.
Typical funding: $40K-$100K
Specialty Equipment
A/C service, transmission equipment, specialty tools.
Typical funding: $10K-$40K
Equipment Financing vs. Alternatives
| Feature | Equipment Financing | Cash Purchase | Equipment Rental |
|---|---|---|---|
| Cash Required | 0-10% down | 100% | Monthly rental |
| Ownership | At term end | Immediate | Never |
| Working Capital Impact | Preserved | Depleted | Ongoing cost |
| Total Long-Term Cost | Moderate | Lowest | Highest |
Auto Repair Equipment Financing Requirements
Business History
Established auto shop with operating history.
6 months - 1 year preferred
Owner Credit
Owner credit reviewed. Higher scores access better rates.
580+ for most approvals
Business Revenue
Revenue sufficient to support payment amounts.
Supports payment level
Equipment Type
Standard shop equipment from recognized manufacturers.
Mainstream equipment
Equipment financing decisions weight equipment value heavily. Collateral enables approval for shops that might not qualify for unsecured financing.
Real Results
Main Street Auto Service
General Auto Repair, Ohio
The Challenge
Main Street needed a new alignment machine ($38,000) and tire changer ($8,000). Cash was committed to parts inventory.
The Solution
We bundled $46,000 in equipment financing over 48 months. Monthly payments of $1,200 were easily supported by additional revenue.
The Result
Alignment revenue increased from $0 to $150,000 annually. Equipment investment paid back in less than one year.
“We were sending alignment work down the street. Now we capture all of it and more. The equipment paid for itself quickly.”
Auto Repair Equipment Data
Auto Repair Equipment Financing Advantages
Revenue Growth
New equipment enables new services and more revenue.
Efficiency Gains
Modern equipment means faster service and more capacity.
Competitive Capability
Match or exceed competitor equipment.
Predictable Payments
Fixed monthly payments replace large capital outlays.
Bundling Flexibility
Combine multiple pieces into single financing.
Tech Retention
Good techs want good equipment. Investment retains talent.