Quantcast
Jump to content


Lease or Own? Pros and Cons

Joe Marconi

By Joe Marconi
in Running The Shop

 Share

Recommended Posts

Jerrys Auto Center Apprentice

Jerrys Auto Center

Posted
Posted

“The moneys in the dirt!”… A comment that been made to me numerous times… And Yes it is!!

I purchased my property 1998… 

1) Certain months when I couldn’t afford to pay ME rent… I didn’t throw ME out!

2) My commercial property is my main and largest  retirement asset, I’m 66 now.

3) I did, what I did, when I wanted to with the property. 

4) In the 22+ years MY repair shop has paid ME just about $1.5M in rental income. MY Used car lot has paid ME just about $1M in rental income. 

To me…

The moneys definitely in the dirt!! 

  • Like 2
NATURE Explorer

NATURE

Posted
Posted

When I looked around for shops, the typical lease payment was $3000.00 a month.  My mortgage payment is $3000.00 a month.

  • Like 2
NATURE Explorer

NATURE

Posted
Posted
10 hours ago, xrac said:

That is dirt cheap!

I got lucky and purchased the property in March of 2019, right before the craziness.  After down payment, the loan amount was right around $350,000 for a 20 year.  It's just a 3 bay shop but it used to be a used car lot, so plenty of parking and one of the best locations in the city.  Of course when going this route you have to take taxes and down payment($30,000) into consideration, so I have to add another $700.00 in property tax a month to that $3000 mortgage payment but still it was an easy decision.

  • Like 2
TheTrustedMechanic Community Regular

TheTrustedMechanic

Posted
Posted

I regrettably still rent but with a fantastic landlord.  Property in my area has always been crazy expensive and unless I want to move across town and out of town, there is nothing that is zoned industrial (required for auto repair where I am).  With that said, I am always wanting to buy because of the dozen or so repair shops that have gone up for sale over the last 20 years, I know of only two that actually sold and both had property.  The rest were buying a job basically where they had no property, just the business, equipment and customer database.  So, I know I own a job, not a business and I know that my retirement is not very secure, but it is what it is because of where I am.  But it makes me a good living and I guess I will make the best of it and try to position myself for purchase should something come up.

But, buy is the only way to go after you are established.  When you're starting out, renting is probably the best/cheapest way to go. 

  • Like 2
TheTrustedMechanic Community Regular

TheTrustedMechanic

Posted
Posted

I am located in a building that houses 5, soon to be 4 other businesses and my landlord bought the building about 4 years ago to base their two businesses in, so buying the building will not likely be available for purchase.  I am located in Traverse City, MI.  My rent for a 2000 sq. ft. space is only $1058/mo. so any purchase will be far more expensive on a monthly basis but still my desire.

 

 

  • Like 1
Jerrys Auto Center Apprentice

Jerrys Auto Center

Posted
Posted

Bottom line is there has to be some kind of long term financial plan/ goal/ exit/ retirement strategy in place….
With some kinda safety/ secondary plan in place because there is no guarantee of anything anymore! Just my take on the world today. 🤷‍♂️

  • Like 1

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

  • Similar Topics

    • Joe Marconi
      Business Slowing Down? Before You Spend More Money On Advertising, do this...
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Joe Marconi
      Isn’t It Time We Rethink What a Master Level Technician Is?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • carmcapriotto
      Poker Theory And Automotive Diagnostics With Rich Falco [E160] - Diagnosing the Aftermarket A to Z
      By carmcapriotto
      Thanks to our Partner, NAPA Autotech
      Matt Fanslow welcomes mobile diagnostic technician Rich Falco to explore the intriguing parallels between poker strategies and automotive diagnostics.
      Show Notes
      Watch Full Video Episode Discussion on Poker (00:01:02) Evolution of Poker Strategies (00:02:22) Game Theory and Diagnostics (00:04:35) Common Misunderstandings (00:12:07) Real-World Diagnostic Scenarios (00:13:26) Electric Vehicle Training (00:15:46) Power Window Diagnosis (00:16:44) Poker Predictions (00:18:05) Understanding Poker Players (00:19:01) Reading Opponents (00:20:14) Experience in Diagnostics (00:22:03) The Importance of Training (00:23:22) Shop Culture Changes (00:26:09) Technology in Poker (00:30:21) AI and Diagnostics (00:31:08) Access to Training Resources (00:32:07) Young Technicians' Knowledge (00:33:05) Poker vs. Automotive Diagnostics (00:33:24)
      Thanks to our Partner, NAPA Autotech
      NAPA Autotech’s team of ASE Master Certified Instructors are conducting over 1,200 classes covering 28 automotive topics. To see a selection, go to napaautotech.com for more details.
      Contact Information
      Email Matt: [email protected] Diagnosing the Aftermarket A - Z YouTube Channel
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • Changing The Industry
      Proactive vs Reactive Responses in Business #podcast #autorepairbusiness #automotivebusiness
      By Changing The Industry
      Proactive vs Reactive Responses in Business #podcast #autorepairbusiness #automotivebusiness
    • Changing The Industry
      Achieve Your Shop Goals With The Power of Intentional Planning #podcast #autorepairbusiness
      By Changing The Industry
      Achieve Your Shop Goals With The Power of Intentional Planning #podcast #autorepairbusiness


  •
    Joe Marconi

    Isn’t It Time We Rethink What a Master Level Technician Is?

    By Joe Marconi, in Automotive Industry,

    1 comment 52 views
    Joe Marconi

    Five Proven Tips to Improve Your Bottom Line

    By Joe Marconi, in Selling Automotive Repair,

    0 comments 51 views
    Joe Marconi

    Money Isn’t The Motivator We Think It Is

    By Joe Marconi, in Automotive Management,

    0 comments 53 views

  • Our Sponsors

Main Sections

More Sections

Discussion Forums

×
×
  • Create New...