Owning Mobile Oil Change Business

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Thinking of owning a mobile oil change business as changing oil has become one of my passions in life..Odd I know, but none the less it is what I enjoy doing everyday. Anyone know where to look for insurance in South Carolina or whether it is needed for this line of work? I have so many questions about the business.
 
absolutely you want insurance - to cover damage to a customer's car; or at least alleged damage. Calculate your costs and your fees; determine how many cars you need to service to break even. do at least 5 things EVERY day to advertise, market, grow your business. As you likely know from your current job, there is good profit in upselling air filters and cabin filters.
 
Dont forget that a lot of places frown on auto repair in their parking lot. Had a local guy doing mobil oil changes and that was a huge problem. He ended up towing most cars away on a trailer then bringing them back later.
 
Originally Posted By: TigerJake
Thinking of owning a mobile oil change business as changing oil has become one of my passions in life..Odd I know, but none the less it is what I enjoy doing everyday. Anyone know where to look for insurance in South Carolina or whether it is needed for this line of work? I have so many questions about the business.



Gee....you could actually buy multi quarts of oil to use for business and not have to sell it to someone else when you really realize that you bought it cheap for bragging rights on BITOG-not that you actually needed it.
 
Lots of red tape. Many HOAs ban doing that in the driveway. You'll need management companies permission before operating a business on apartment/lease property. Plus getting bonded and insured.
 
I would get insurance and just do it and not ask permission. You will be in and out so fast its not like you will be there all day. If you are changing oil in boats at a Marina yes that's a a tad different.
 
Yes. You'll not only need commercial insurance for the vehicle(s) you use for the business, but both general business liability (covers business as a whole), targeted coverage (covers damages to a customers vehicle), tool coverage, workers comp, and probably pollution insurance (in the event you spill oil).

Quite frankly, you're looking at a loosing proposition. You're considering a business that will make a maximum profit of $10 or $15 per oil change after the cost of the oil and filter are included, and that's simply not enough to sustain a viable business. Think twice and think hard about it.
 
While I think it's great to follow your passion. I also think you will be successful in creating a mobile oil change business.

Unfortunately you're likely going to operate under negative profit. Your best chance, and likely only chance of operating a viable business is to specialize in exotics. It's also probably going to take years before you create a client base large enough to make a profit.

With such small margins on oil changes you're going to need to do a lot of cars a day. Every day.
 
Talk with a couple of owners, in person, that are already in business - they'll tell you everything you need to know. Make an appointment to talk to them ahead of time - most owners are busy.
 
Question of clarity: Who said the OP was doing this in parking lots or at his condo?
A Mobil (brand?) oil change place would be in a building zoned for that purpose, no?

There are 3 oil change places in my traveling circuit. All 3 are empty all the time. There are ALWAYS 3 or 4 oil change place coupons in the 2 mailers we receive and other coupons are in the paper.

Heck, car washes do oil changes! TRANSLATION: Competition will be fierce.

People do not want to think about spending $ on their cars. It's uphill from the start.
I'd bet a high percentage of oil changes are added to needed repairs at garages.
I do a few oil changes for neighbors who had frequented "$20 SPECIAL" joints because I convinced them of the shoddiness of bargain filters and the high likelihood of their engines getting incorrect bulk oil. They also have seen my family's cars go 10 years and >150K.

As a "jack business" (which I'm all for) you'll be exposing your liabilities for a trickle of cash and possible weekend crush times.

I knew a parking lot where they did a brisk business washing cars.
If you were their "oil change guy" you could possibly do some changes in a manageable time slot.

Also, CAREFUL, CAREFUL, CAEFUL if your little avocation branches into brake repair.
You can refer brake jobs to local garages but no entity is going to refer an oil change customer to you.

This might be a better beginner's business-backyard business-for younger guys.
 
Originally Posted By: Pop_Rivit
Yes. You'll not only need commercial insurance for the vehicle(s) you use for the business, but both general business liability (covers business as a whole), targeted coverage (covers damages to a customers vehicle), tool coverage, workers comp, and probably pollution insurance (in the event you spill oil).

Quite frankly, you're looking at a loosing proposition. You're considering a business that will make a maximum profit of $10 or $15 per oil change after the cost of the oil and filter are included, and that's simply not enough to sustain a viable business. Think twice and think hard about it.


I agree. You'll need to do a lot of oil changes to make it a "profitable" business. Pocket change, maybe, but that's about all I see coming out of a mobile oil change business.

OP- In any event, good luck!
 
Originally Posted By: Pop_Rivit
Yes. You'll not only need commercial insurance for the vehicle(s) you use for the business, but both general business liability (covers business as a whole), targeted coverage (covers damages to a customers vehicle), tool coverage, workers comp, and probably pollution insurance (in the event you spill oil).

Quite frankly, you're looking at a loosing proposition. You're considering a business that will make a maximum profit of $10 or $15 per oil change after the cost of the oil and filter are included, and that's simply not enough to sustain a viable business. Think twice and think hard about it.
A Benz suffering an accident in your hands will cripple your profit margin unless you have some "acts and omissions" coverage".
 
Originally Posted By: Kira
Question of clarity: Who said the OP was doing this in parking lots or at his condo?
A Mobil (brand?) oil change place would be in a building zoned for that purpose, no?

OP was asking about a mobile (that's the correct spelling) oil change business. Mobile, as in driving to the customers, not the customers driving to him. Doing oil changes at the customers houses or places of employment. Hence the concern of doing oil changes in HOAs and parking lots.
 
Go for it. Then you will know.
My friend was a retired hotshot mechanic and taught dealerships the tricks for years.
He later went mobile but he found cheapness was the main concern and always off hours.
But you will never know unless you get into it. good luck
 
In order to make money you will have to push extra services. Most people do not care much about the oil change. They are probably not willing to pay extra for better oil or filter. Just the basic to maintain warranty.
 
This is not a business. You would be lucky to even break even. Your drive time eats up ANY chance of a profit. Not to mention insurance will be expensive. Stocking oil and filters would be expensive. Where are you going to do the work? A parking lot? Frowned upon, and not allowed in many places. Gas and insurance for your vehicle???

With drive time you are looking at one, perhaps two cars per hour. A small business needs to make over $100/hr or thereabouts, to stay afloat. That means you need to charge upwards of $80 to $150 per oil change, just to stay profitable. That is a VERY small clientele who will pay that much, when they can go down to the quick lane at the Ford dealership for $29.99.

I know its your passion, but this business wont even get off the ground.

If you lived in a rich area with a ton of BMW/Mercedes/Volvo/Audi/Land Rover drivers, and catered to them, and charged accordingly, then it's possibly a profitable venture. But catering to every day Joes that drive a 2010 Honda Civic? Not going to work.
 
Do you know how many people today run a business to boost their egos and never make a dollar and don't care?
I see it every single day........... Why???????

Originally Posted By: bubbatime
This is not a business. You would be lucky to even break even. Your drive time eats up ANY chance of a profit. Not to mention insurance will be expensive. Stocking oil and filters would be expensive. Where are you going to do the work? A parking lot? Frowned upon, and not allowed in many places. Gas and insurance for your vehicle???

With drive time you are looking at one, perhaps two cars per hour. A small business needs to make over $100/hr or thereabouts, to stay afloat. That means you need to charge upwards of $80 to $150 per oil change, just to stay profitable. That is a VERY small clientele who will pay that much, when they can go down to the quick lane at the Ford dealership for $29.99.

I know its your passion, but this business wont even get off the ground.
 
Maybe combining it with a detailing service might make the idea more feasible?
I, for one, don't mind at all taking time to change my oil, but the idea of spending time cleaning and waxing my car makes me think immediately of anything else I have to do around the house or garage. But, I do like having my car look pretty. Seems like charging $100-150 for a decent detailing is reasonable (I paid in that range after a wayward branch left a streak down one side of my car, luckily not a scratch), of course a detailing is going to take much longer than an oil change but it seems like a way to bring in a lot more $$$ per customer without requiring a lift or tons of tools.
 
I think you'd be better off if you found a really cheap shop lease and worked overnight. People drop off their car after work to get it serviced and then pick it up the next morning before work.

Of course you'll become a night owl but this puts you in a niche position. The only drawback will be that parts delivery doesn't work during the night so you would need to stock ALL kinds of filters and have lots of oil drums on reserve if things got busy.

Read through this, which is a principle that was hammered into my brain when I was getting my MBA:

https://en.m.wikipedia.org/wiki/Competitive_advantage
 
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