How much does a Auto Body & Collision Repair cost to buy?

A typical Auto Body & Collision Repair sells for 2.5x to 4.2x seller's discretionary earnings. With estimated SDE of $216K, expect to pay roughly $540K to $907K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Auto Body & Collision Repair?

Startup costs range from $200K to $1.2M depending on location, equipment, and scale.

Physical

Auto Body & Collision Repair

Q: What are the profit margins for a Auto Body & Collision Repair?

The average profit margin for a Auto Body & Collision Repair is around 18%. Biggest costs are technician labor, paint and materials, parts procurement, facility rent, frame and booth equipment, hazardous-waste compliance, and insurance. The best shops protect gross profit through disciplined estimating and cycle-time control.

Insurance-paid repair volume with ugly operations and surprisingly durable demand

Bottom line

Worth studying, but do not buy without strong local proof.

Collision shops repair wrecked vehicles, handle paint work, and coordinate with insurers after accidents. BizBuySell's auto-repair benchmarks, which explicitly include auto body shops, show median revenue of $819,431, median owner earnings of $182,133, and average earnings multiples of 2.82x. The surprising angle is that insurers and dealer referrals can make a good shop feel closer to a local claims-processing machine than a typical retail garage.

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Acquisition score

Strong

Avg Revenue

$1.2M

Profit Margin

18%

Acquisition Multiple

2.5x - 4.2x

Startup Cost

$200K - $1.2M

How It Works

Customers arrive through insurer direct-repair programs, dealer referrals, fleets, and local word of mouth. The shop estimates damage, orders parts, performs body and paint work, and gets paid when vehicles are delivered. Throughput, labor efficiency, paint-booth utilization, and insurer relationships drive returns.

Revenue Range

Low End

$500K

Typical

$1.2M

High End

$3.0M

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 811121 · Automotive Body, Paint, and Interior Repair and Maintenance

Deals tracked

215

85 in last 24 mo

Median loan

$711K

$265K–$1.4M p25/p75

Implied deal size

$837K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Deal Flow Over Time

12-month momentum

+83.3%

deal volume vs prior 12 mo

Median loan Δ

+70.3%

55 recent · 30 prior

Financing Profile

Median rate

9.50%

15% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

The Huntington National Bank21

Live Oak Banking Company20

Pinnacle Bank7

First Internet Bank of Indiana7

Manufacturers and Traders Trust Company7

Where deals happen

CA21

MI14

FL14

TX13

OH11

NJ11

MN10

CO9

NY9

WA9

Franchise vs independent

Franchised acquisitions finance at $496K median vs $730K for independents — a -32% franchise discount. Franchises make up 11% of deals tracked.

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	MI	$799K	$940K	11	—
Mar 2026	CA	$2.4M	$2.8M	5	—
Mar 2026	TX	$2.8M	$3.3M	10	—
Mar 2026	AZ	$1.7M	$2.0M	37	Maaco
Feb 2026	CA	$329K	$387K	4	—
Feb 2026	KS	$416K	$489K	6	—
Feb 2026	NC	$711K	$837K	7	—
Feb 2026	CA	$825K	$971K	18	—
Feb 2026	NY	$3.9M	$4.6M	—	—
Jan 2026	IN	$749K	$881K	6	—

Volume rank #36/544Deal-size rank #262/544Momentum rank #58p90 loan: $2.5MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+Large ticket sizes and insurer-backed demand
+Referral relationships can create sticky lead flow
+Equipment-heavy moat makes fly-by-night competition harder
+Consolidators and MSOs create exit optionality for strong shops

Cons

-Labor management and technician recruiting are hard
-Equipment, booths, and environmental compliance are expensive
-Margins can get squeezed by insurer pricing pressure and parts delays

Best For

Operators who can manage skilled technicians, insurer relationships, and shop throughput

Operating Costs

Biggest costs are technician labor, paint and materials, parts procurement, facility rent, frame and booth equipment, hazardous-waste compliance, and insurance. The best shops protect gross profit through disciplined estimating and cycle-time control.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-8397/mo

after debt service

Deal price — $2.4M

Range: $2.4M (2.5×) to $6.2M (4.2×+)

Down payment — 15% ($360K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 9.50%

SBA median for this category: 9.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$360K

15% equity injection

Loan amount

$2.0M

85% SBA-financed

Monthly payment

$26K/mo

$1.1M total interest

Monthly profit

$18K/mo

at 18% margin

Monthly cash flow after debt service

$-8397/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.