Auto Repair Shop Feasibility Study in the Tucson, AZ Metro Area

Tucson repair shops: typical in weight, double the usual loan

Automotive mechanical repair has a 1.01x location quotient in the Tucson, AZ Metro Area, so the class carries almost exactly the weight it has nationally, and it is 9 of 39 in Tucson and 73 of 660 across metro and micro areas. The ticket is different: a $500,000 median is 2.13x the nationwide median. All 25 approvals sit in Pima County and come to $16.6 million between FY2017 and FY2026; franchised shops are absent (0.00%).

Range and what prints

A band between $277,000 and $908,600 holds the middle half of loans. FY2018 shows no approvals ($0). Every other year is hidden, since the 25 loans spread thinly by year. Neither a lender nor a program count appears.

Truck service and what is left out

The class folds heavy-duty and light truck service into car repair, so a shop that works on commercial trucks looks like a car garage here. Body and paint, glass, oil changes and the other repair trades are excluded and filed elsewhere. Tucson: empty cancellation and charge-off cells, since few of the 25 are early loans, so read the blank as unknown.

Why the median stands out

A median double the nationwide one suggests that loans here lean toward shop purchases and building projects, not small equipment requests. Borrowers should be ready to explain why their request fits that pattern, and a lender should expect a mix of real estate and operating business in the file. Where a request falls well under the median, the likelier use is equipment, a leasehold or a purchase of an existing shop, and the study should say which.

What a Tucson shop study must test

The study should start with the service mix and the bays and technicians it requires. Revenue comes from labor hours sold and parts margin, so it should state hours per technician, the labor rate and the parts share. Technician hiring and pay set capacity, and equipment such as lifts and diagnostic tools can be a significant budget line. Customer sources, whether walk-in, repeat or fleet, need figures. If the borrower buys the building, the study should split rent-equivalent from business income. Lenders test payment coverage on slower ramp-up, and the appraisal must separate real estate from goodwill.