Auto Repair Shop Feasibility Study in the Raleigh-Cary, NC Metro Area

Nearly double the national ticket

Raleigh-Cary shows auto repair lending at nearly twice the national ticket size. The midpoint of $466,000 is 1.98x the national midpoint for mechanical repair, and the typical loan runs from $164,375 to $819,750. Across FY2017 through FY2026 the record holds 38 approvals worth $25.9 million. The record does not say whether a loan of that size paid for a shop purchase, new bays, real estate or a lease and a lift, so the plan should state which of those it is.

Weight and rank

The area is 53 of 660 for the class, mechanical repair is seventh, 7 of 39, and a quotient of 0.88x leaves it a little under its national share. Franchise share is 31.6%, a substantial minority of the loans. Wake County accounts for 31 loans.

What the class covers

Trucks and cars are repaired under one shared code, with no way to pull them apart. Collision, windshield and lube businesses fall under other industry codes and are left out. A collision or quick-lube project should be read against other pages.

Holders and what is withheld

Live Oak Banking Company is listed on 5 loans worth $3.0 million, as the holder SBA reports now. Loan Analytics withholds the program counts and the charge-off rate, and leaves the cancellation rate blank, as the cohort behind that rate counts under 30 loans. Every single year falls under the reporting line, so no trend can be drawn for this cell; a reader wanting a time series for the class has to turn to the North Carolina or national page. None of these gaps is a zero.

Studying a Raleigh-area shop

A study should test the metro's growth against the vehicle population the site can reach, the competition from dealers and chains, and the mix of work between routine maintenance and heavier repair. It should test equipment, bay count, technician supply and wages, and the zoning of the site. With tickets this large, the study should say whether the plan includes real estate and treat it separately. A franchise brings fees and standards that belong in the cost model. Payments should be covered in a slow quarter, and the appraiser should value the business and building on their own terms.