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Costs of setting up mot station/garage

13

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  • vikingaero
    vikingaero Posts: 10,920 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    V-Tech sccccchhhhhbbbbbbaaammmm!
    The man without a signature.
  • w211
    w211 Posts: 700 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    Looks like you may need to offer another business/service to make this work.

    Where I go to get my car (hand) washed, there is an MOT centre, where they also do servicing/repairs. There is also a cafe on site situated in a converted portacabin, the owner of the cafe probably pays rent to have his cafe there. All in one location.

    I expect the car washing, is the most profitable part of the business as it's usually always busy, depending on local competition, something to consider?
  • Strider590
    Strider590 Posts: 11,874 Forumite
    Old thread :/
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  • red_eye
    red_eye Posts: 1,211 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    tonytee wrote: »
    I was just afer some advise regarding setting up an MOT station in the Birmingham area.

    I am not a mechanic so will employ a MOT tester. I want to set up a new business doing class 4 and 7 MOT's (cars and vans)

    I lost my job recently and want something to do with my time and start back on the road of making money and earning a living. I have around £10k but can get another £10k from my mother.

    Any advice on this matter please?
    20k would get you a 4 poster atl and maybe even stretch to gas analyzer you will still need more equipment and property and any modifications to comply with mot.

    My advise go college and get the qualifications, I know 3 years is a long time but you will be able to use the testing station to generate repair jobs.
  • red_eye
    red_eye Posts: 1,211 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    tonytee wrote: »
    Thanks for all that advice.

    Leasing the equipment will be the best idea for sure and at around £125 per week its the best idea for someone in my situation. I will only lease the premises if they comply with the regulations, so I dont see why 20k is not enough?

    A second hand ramp shouldnt cost that much should it?

    I guess it would be better to offer more services.
    careful on premisses as some do not allow motor trade uses
  • tonytee wrote: »
    I was thinking it would generate lots more business being a 'just MOT centre' Customers would be safe in the knowledge that the garage wasnt 'making up' needless repairs.
    They just go to the council.

    How much would it be to set up? I know 20k would not cover everything but would getting the equipment on finance be a good idea?? Especially for tax purposes..

    Thanks again.

    You won't get finance unless you are a guarantor which leaves you liable for £10,000s if it fails. You need a hell of a lot more than £10k/£20k to set up. Signage alone would be 1/10th of that. A weeks advertising would take up another 10%.
  • tonytee wrote: »
    Thanks for all that advice.

    Leasing the equipment will be the best idea for sure and at around £125 per week its the best idea for someone in my situation. I will only lease the premises if they comply with the regulations, so I dont see why 20k is not enough?

    A second hand ramp shouldnt cost that much should it?

    I guess it would be better to offer more services.

    You can't just use any old ramp for a MOT. It has to be a four poster ramp with a jack and swivel plates. You also need a brake tester which involves digging up the floor to install. And you need a headlamp beam tester and an emissions tester (specific ones, not cheap). The brake tester and emissions tester need certified calibration which costs money.

    You're going to need at least a compressor if you're going to offer more services and one of those with piping will cost you well over £1k for a mediocre one. You could easily blow another grand on air tools.

    You need signage for the building. There are specific signs required by HSE and DoT as well as the ones for your business such as the name sign over the door. Environment Agency require equipment putting in place for storage of waste fluids and materials.

    You need to advertise. A small 6x4 square in a weekly local paper will typically set you back about £500 a week.
  • s_b
    s_b Posts: 4,464 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You can't just use any old ramp for a MOT. It has to be a four poster ramp with a jack and swivel plates. You also need a brake tester which involves digging up the floor to install. And you need a headlamp beam tester and an emissions tester (specific ones, not cheap). The brake tester and emissions tester need certified calibration which costs money.

    You're going to need at least a compressor if you're going to offer more services and one of those with piping will cost you well over £1k for a mediocre one. You could easily blow another grand on air tools.

    You need signage for the building. There are specific signs required by HSE and DoT as well as the ones for your business such as the name sign over the door. Environment Agency require equipment putting in place for storage of waste fluids and materials.

    You need to advertise. A small 6x4 square in a weekly local paper will typically set you back about £500 a week.

    very poor quote there 2/10 im afraid
    if it isnt bad enough that even unipart do a complete mot package at less than £150 a week
    your advertising costs are a complete joke
    i always find it amazing how many people do the talk but cant do the walk
  • costa1717
    costa1717 Posts: 1 Newbie
    edited 1 October 2012 at 10:35AM
    Hi read all messages and replies. I can understand your concerns and advice given, but I never looked back!!! I had £7,000 start up and the deposit for a site. Took 3 months to set up an MOT station. Leased the equipment, used ebay to find all the other used stuff I needed, 2 post ramps, engine hoist, tools etc!!!!! With the advertising, the mechanical works and all the collecting of vehicles I did, I turn over a fantastic amount of money!!! We do 12 -14 MOT'S on a daily basis. Open up at 8am & close 6.30pm. At £40 an MOT plus repairs, do the maths!!! Its about location - you as a person - your staff - quality of works carried out & being honest!!!!! My test station - garage in Hertford is in a quite Industrial estate with no other MOT station or garage near me. I had to graft to get work and put my self around. I was honest polite & friendly and I do well.
    Greed will not get you a reputation but being honest, friendly & NO BULL!!!!! will get you far. Been trading 1 year now and turned over £155,000 PROFIT after paying rent rates electric gas and 3 staff wages!!!!!
    I have read all the negative reports on this site and it amazes me what people do. 5 mots a day???? Advertising £500 a week??? Set up costs??? £20,000 not enough???? Please do not listen to these quotes!!!! look at you location and do a bit of research and if after that you feel it and want it....... GO FOR IT!!!!!
  • s_b
    s_b Posts: 4,464 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    yes thank you for that post
    now please give the real figures
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