Gearing up

Nation's Business, May, 1997 by Stephen Blakeley

I'm interested in starting an automotive-repair service. Whom can I contact for information?

How do I secure a loan, work space, insurance, and equipment? E.R., Onenard, Calit

The Automotive Service Association (ASA) in Bedford, Texas, runs the ASA Management Institute, which offers classes geared to start-up independent repair shops. Most of the association's members run small body-shop and mechanical-repair garages. Call 1-800-272-7467 or visit the group's Internet site at www.asashop.org.

You can also contact the Automotive Maintenance and Repair Association (AMRA) in Washington, D.C.; (202) 466-7050. AMRA represents repair shops and runs the Motorists' Assurance Program, a soon-to-be-national set of repair and service standards that member garages pledge to follow.

Larry Heckler, AMRA's president, says that "years ago you could get into general auto repair fairly easily, but it's not that simple anymore."

Most of today's cars are extensively computerized, and servicing those components requires costly diagnostic equipment and specialized training.

Environmental restrictions add significant equipment and insurance costs for certain services, such as oil disposal, airconditioning repair, and emissions testing. Local governments often have their own, additional rules that can raise overhead costs.

Faced with such requirements, Heckler says, many independent repair shops find they can be more competitive if they specialize in certain types of repairs or if they become franchisees of national automotive-service companies.

RELATED ARTICLE: HOW TO ASK

Have a business-related question? Mail or fax your typewritten query to Direct Line, Nation's Business, 1615 H Street, N.W., Washington, D.C. 20062-2000; (202) 463-3102.

Or transmit your question to our CompuServe address: 76436,1735. Be sure to include your address and telephone number.

Because of the high volume of letters, we can answer only those that are chosen for publication. Questions may be condensed, and writers will be identified only by initials and city.