For Sale $150,000
Steve Lentin

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Accord Business Brokers
Unit 3, 22 Fallon Street,
Caulfield, VIC 3162

Automotive for sale


For Sale $150,000

Business Details


Business Description Summary:

Having started as a sub-contractor in 1993, the current owner purchased this business in 1995. At the time of the purchase, there were two other employees already working in the business, and the owner employed a further two mechanic, bringing the workforce up to five. The frustrations of managing four other people did not appeal to the vendor, who preferred to spend his time productively working on the tools. He, therefore, deliberately cut back the workforce until it became clear to him that he was most comfortable working on his own. This is the current situation, and the business provides the vendor with a good living and exceptionally enviable lifestyle. The experience proves that either model (sole trader or larger business base) will work. The demand, without any marketing whatsoever, means that expansion can be achieved quickly and inexpensively should the new owner decide to do so.

The vendor suffered a serious shoulder injury in a motorbike accident in 2009, and since then has found it increasingly difficult to do some of the work involved. He will require surgery on the shoulder, and the rehabilitation will prevent him from conducting this kind of work for at least twelve months thereafter, hence the business is being placed on the market.


The business operates five days a week from 8.00 a.m. to 5.00 p.m., but the owner seldom puts in more than 35 – 38 hours per week.

The work is demand based, and customers do not have to be pursued to remind them that their vehicles require servicing. The clientele is exceptionally stable and customers are never lost. They are all conscious of the necessity to conduct routine service and maintenance of their vehicle fleets, as most are business clients with various sized fleets.

95% of company purchases are conducted through the Capricorn Society, so that only one bill is received for all of these purchases, and is payable 30 days from date of statement. The Capricorn Society obtains the best prices as a bulk buyer, and the business obtains the best trade rate, owing to their long association with the society.

Market / Customer:

There are approximately 190 regular customers, some with more than one vehicle to maintain. Should there be a lull in demand, there are many customers who could be called to fill in these gaps. The owner normally completes three to five jobs per day.

The company used to advertise in the Yellow Pages, but these adverts have been withdrawn as they were creating more demand that the owner could cope with, without employing more mechanics. Even without marketing, the company normally receives five new customers every month through recommendation, word of mouth, or in reaction to seeing the van on the road.

70% - 75% of clients are fleet customers with the balance being private. Most corporate customers tend to expand, and one customer who started with three motor vehicles, now has a fleet of 15 vehicles, all of which are serviced by the company.

Private customers pay on completion, normally by EFTPOS.

Corporate customers usually pay by cheque or EFTPOS within 15 days of the month end. Because purchases are paid through the Capricorn Society 30 days from month end, cash flow is positive.

Most customers are in the eastern and south eastern suburbs, such as Croydon, Bayswater, Ringwood, with smaller numbers in the city, Brighton and other inner eastern suburbs. Work is normally scheduled to reduce travelling time for the vendor.

Products / Services:

The business provides the service of servicing, maintenance and repair of motor vehicles, usually for corporate customers.


Premises are not required and the business is currently operated from a home office. Stock is stored in the van.

Plant/Equipment / Fittings:

The asking price includes two Toyota Hiace vans. A full list is included in the business report.

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Summary »

  • Business Category: Automotive
  • Business Sub Category: Mechanical Repair
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Accord Business Brokers
Unit 3, 22 Fallon Street,
Caulfield, VIC 3162

Phone: 03 9569 2883
Fax: 03 8677 0868

Steve Lentin
Phone: 03 9569 2883
Mobile: 0419 910 099

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