General Automotive Repair Revenue Benchmarks
The average general automotive repair business in the United States generates $563K in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 78,906 general automotive repair businesses in the U.S., employing 362,616 workers with an average profit margin of 8.0%. The average employee in this industry earns $55K per year (Bureau of Labor Statistics QCEW 2023).
What Does a General Automotive Repair Business Actually Do?
Independent auto repair shops that service most makes and models. Work includes brakes, suspension, engine, transmission, electrical, and general diagnostics.
Who buys: Vehicle owners with a car out of warranty or seeking alternatives to dealer service.
How this is different: Different from dealer service departments (single manufacturer, higher rates) and specialty shops (brakes-only, transmission-only, etc.).
Average Revenue
$563K
per year
Profit Margin
8.0%
industry average
Revenue / Employee
$123K
per year
Total Businesses
78,906
in the US
Est. Owner Income
$45K
small business avg
Labor Cost
38.0%
of revenue
Avg Employee Wage
$55K
per year (BLS)
Market Saturation
23.8
firms per 100K people
How Much Do General Automotive Repair Charge?
Auto repair shops charge hourly labor plus parts, with the labor rate reflecting shop overhead.
| Service | Typical range |
|---|---|
Independent labor rate | $80–140/hour |
Dealer labor rate | $120–220/hour |
Diagnostic fee | $100–200 |
Brake job (pads + rotors) | $300–700 per axle |
Timing belt | $500–1,500 |
Engine replacement | $3,500–10,000+ |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete general automotive repair business plan
A 12-section data-backed business plan for a general automotive repair business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the general automotive repair industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Supplies & materials | $16 | $91K | Direct consumables — parts for repair shops, chemicals for laundries, etc. |
Wages & benefits | $38 | $214K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $11 | $61K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $5 | $30K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $22 | $122K | Insurance, licensing, tools, uniforms, small equipment. |
Net profit | $8 | $45K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.42%
openings/year
Closure Rate
9.1%
closings/year
Net Job Growth
+3.4%
annual
Businesses Closed
12,052
in 2023
Firm Count Trend
Should You Start a General Automotive Repair Business?
Startup Cost
$30K – $150K
Break-Even
24 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a general automotive repair business do?
- Independent auto repair shops that service most makes and models. Work includes brakes, suspension, engine, transmission, electrical, and general diagnostics. Vehicle owners with a car out of warranty or seeking alternatives to dealer service.
- How much do general automotive repair charge?
- Auto repair shops charge hourly labor plus parts, with the labor rate reflecting shop overhead. See the pricing table above for typical rates by service type.
- How much does the average general automotive repair make per year?
- The average general automotive repair business generates $563K in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $45K per year at a 8.0% profit margin.
- How many general automotive repair businesses are there in the US?
- There are 78,906 general automotive repair businesses operating in the United States, employing a total of 362,616 workers.
- How much does it cost to start a general automotive repair business?
- Startup costs for a general automotive repair business typically range from $30K to $150K, with a 5-year survival rate of 50.0%.
- What is the average salary in the general automotive repair industry?
- The average employee in the general automotive repair industry earns $55K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The general automotive repair industry is actively growing — adding jobs at a net rate of 3.4% per year. New establishments are opening faster than existing ones close (10.4% entry vs 9.1% exit), indicating healthy demand.
Approximately 62% of general automotive repair businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 12,052 firms in this industry closed permanently.
Employment & Wages
The average employee in the general automotive repair industry earns $55,359/year. This is near the national average of ~$65K. With 86,018 establishments employing 390,423 people, the typical business has about 5 employees. Most businesses in this industry are small operations — often owner-operated with minimal staff.
Industry Trend (2000–2023)
The general automotive repair industry has declined 2% since 2000 (from 138,176 to 135,684 firms).
See full historical statistics →Compare General Automotive Repair revenue with other industries: