Auto Repair Shop Feasibility Study in the Stockton-Lodi, CA Metro Area

Car and truck repair in San Joaquin County

The Stockton-Lodi, CA Metro Area records 32 SBA loans, FY2017 to FY2026, for car and truck mechanical repair, carrying $18.3 million in gross dollars. The class is fourth of 39 locally. In the area ranking by repair loans the metro is 61 of 660, and a location quotient of 1.64x shows repair shops carrying more weight in local lending than nationally. A $374,000 median is 1.59x the class's national median, and its central half of loans lies between $163,500 and $695,350. We do not call any of these distinctive for the cell.

Programs and what the class covers

SBA 7(a) accounts for 24 loans and SBA 504 for 8, a mix that still leans toward working capital and equipment over real estate. The class covers mechanical repair for cars and trucks, which share one code; Collision, paint, glass and oil-change work, along with other automotive repair, is excluded. The franchise share is not printed, and the lender tables are empty because no holder reaches five loans in either program.

The thin record by year

Of the 32 loans in the Stockton-Lodi cell, only FY2017 gathers enough in one year to print: 7 loans and $2.8 million. Every other year is left blank, and a blank here is not a zero. Outcome rates are absent as well: San Joaquin County's repair shops fall short of the 30-loan cohort Loan Analytics needs for FY2017 to FY2021.

Testing a Stockton repair shop

A mechanical repair shop earns from bays, technicians and the mix of light and heavy work, so the study should test bay count against expected car counts, labor hours billed per technician, parts margin and the cost of diagnostic equipment. Because truck service is in the same class, a shop aimed at heavier vehicles needs bays and lifts sized for them, and the loan size will rise with them. A request near the upper $695,350 edge of the middle half should say whether real estate is included. The lender's appraisal will turn on cash flow and the building's value separately. San Joaquin County's loans are the ones assigned to Stockton-Lodi, using the July 2023 delineation of areas.