Not very often do I get to blog about things that go on in our home regarding equipment leasing, however, this week our high school son came home and announced he wants to be an auto mechanic and have his own shop. Part of this is because he truly loves working on cars and he does a great job (even changes the oil in our cars) but after digging a little deeper we learned it’s also because he’s not fond of math this year (Algebra II so who can really blame him). We talked to him a little about the importance of school and having a well-rounded education and then he started asking questions about how much it would cost to open his own shop. He was shocked, as were we, with the cost of even the most basic of equipment.
We first showed him some business listings of spaces that were available that were former auto repair facilities and what the rent was. We asked him to do the math of how many oil changes that meant per month and how many hours he would have to work with a $10 mark up on each oil change. Yes, we tricked him into doing math and showing him that just because you own a business, it doesn’t mean that you don’t have to know Algebra and yes we agree that wasn’t the fairest comparison because no shop survives on oil changes alone but it was and easy comparison to make.
After he was shocked about the building rent and reminded him those weren’t his only expenses. We asked him what other tools he might need. Right off the bat he knew he’d need something to balance tires and other pneumatic tools. We had him do a little more homework and look up some of the essentials. He quickly came to a bit more than $20,000 in equipment he’d needs to get started and we informed him that we didn’t have that kind of money sitting around to help him start a business. Because of my involvement with eLease, I pointed out that there is a way that a lot of businesses acquire tools for their business, whether it is washing machines for a laundry mat or pneumatic lifts and tools for an auto mechanic shop. He was surprised that leasing equipment would be an option as he’d previously only heard of car and apartment leasing.
We showed him some equipment leasing estimates and told him that meant more oil changes every month. He, of course, pointed out now that he had all this great equipment he could do a lot more than just oil changes and make more per job. Leasing equipment for an auto repair shop is a very cost effective way for an experienced mechanic who has not only the knowledge to make the repairs but also to manage people and schedules to have their own business.
I think for now we’ve convinced him that it’s important to continue with learning Algebra and in school if he does want to be an owner of a shop one day. If you are looking for auto repair equipment, contact eLease and we’ll be happy to work with your tool provider on your equipment lease.