How Much Does It Cost to Start an Auto Body Shop?
- Nate Jones, CPCU, ARM, CLCS, AU
- 3 days ago
- 2 min read
Opening an auto body shop can be a lucrative business, but it requires careful financial planning. Costs vary depending on location, services offered, and the size of the shop.
This guide breaks down the key expenses, helps you plan your budget, and shows how insurance can protect your investment.
Startup Costs Overview
Starting an auto body repair shop involves several major expense categories:
Facility and lease costs
Equipment and tools
Licensing, permits, and certifications
Insurance coverage
Staffing and initial inventory
Understanding these costs ensures you can plan for a successful launch.
Facility and Lease Costs
Your shop’s location can greatly impact your startup budget.
Lease or purchase of space: $2,000–$10,000/month depending on size and location
Renovations and setup: $10,000–$50,000 for paint booths, work bays, and storage
Equipment and Tools
An auto body repair shop needs specialized equipment for collision repair, painting, and detailing.
Essential Equipment
Frame straightening machines: $5,000–$20,000
Paint booths: $10,000–$50,000
Air compressors and pneumatic tools: $2,000–$5,000
Hand tools and power tools: $2,000–$5,000
Measuring and diagnostic tools: $1,000–$5,000
Licensing, Permits, and Certifications
To operate legally, you’ll need:
Business license: $50–$500
Environmental permits (for paint and chemical handling): $500–$2,000
Technician certifications (ASE, I-CAR): $100–$300 per employee
Find more guidance on licensing requirements at SBA Business Licensing Guide.
Insurance Costs for Auto Body Repair Shops
Insurance protects your investment, employees, and customers’ vehicles.
Recommended Insurance Policies
Typical Annual Costs: $5,000–$12,000 depending on shop size and coverage limits.
Staffing and Initial Inventory
Your team and initial stock are key to running a functional shop.
Staffing Costs: $30,000–$80,000 per technician annually depending on experience
Inventory: $2,000–$10,000 for paints, primers, and replacement parts
Proper staffing and inventory planning can help control operating costs.
Final Thoughts
Opening an auto body shop can cost $50,000–$200,000 or more depending on location, equipment, and services offered. By planning carefully and protecting your shop with proper insurance, you can set yourself up for long-term success.
Partnering with Wexford Insurance ensures your business, equipment, and employees are covered.
Contact us today to safeguard your investment.
