Oil Change Business Overview

Oil change businesses provide routine vehicle maintenance services focused on replacing engine oil and oil filters. These businesses serve both individual vehicle owners and commercial fleets, offering various grades of motor oil and complementary maintenance services.

The most common business models in this industry include:

• Fixed Location Model: Dedicated facilities with service bays and equipment for oil changes and basic maintenance
• Mobile Service Model: Technicians travel to customers’ locations to perform oil changes and maintenance
• Franchise Model: Operating under established brands with standardized procedures and pricing

Related: Checklist To Start A Business

How Do Oil Change Businesses Make Money?

Oil change businesses generate revenue through automotive maintenance services, with oil changes being their primary offering. Their income comes from both one-time customers and repeat clients seeking regular maintenance.

Industry Statistics

Oil change services fall under NAICS code 811191 – Automotive Oil Change and Lubrication Shops, which includes businesses primarily engaged in changing motor oil, lubricating vehicles, and providing other basic automotive maintenance.

Here are some highlights about the oil change industry:

Oil Change Industry Size & Growth: The oil change industry generated $12.6 billion in revenue last year. The industry has grown by 6.6% annually over the previous five years. Growth projections remain positive due to increasing vehicle registrations and rising travel rates as more people return to offices. Additional factors supporting continued expansion include higher travel rates and ongoing maintenance requirements for an expanding vehicle fleet. (IBISWorld)

Number of Oil Change Businesses: The industry consists of 29,861 businesses across the country. Two major companies dominate the market: Valvoline Inc. holds the largest share at $1.15 billion in revenue, while Royal Dutch Shell Plc follows at $817.3 million. These companies demonstrate the potential for large-scale operations in this industry. (IBISWorld)

Oil Change Business Profit Margin: Oil change businesses maintain strong profit margins, averaging around 20% after accounting for operating costs, materials, and labor. This margin reflects the balance between competitive pricing and operational efficiency. (Identifix)

Also See: Ideas for Naming an Oil Change Business

Costs To Start an Oil Change Business

Starting an oil change business could range from $75,000 to $250,000, depending on the location and size of the operation. This range accounts for both small independent shops and larger facilities with multiple service bays.

Here are some of the main costs to consider when starting an oil change business:

Location Setup: A service location might need $40,000 to $100,000 for initial costs. This includes the first and last month’s rent, security deposit, and renovations to install service bays, lifts, and proper drainage systems. The space needs proper ventilation, oil storage areas, and customer waiting areas.

Equipment and Tools: Service equipment costs range from $20,000 to $75,000. This includes hydraulic lifts, oil drainage systems, filter wrenches, diagnostic tools, and fluid storage tanks. Each service bay requires its own set of basic tools and safety equipment.

Initial Inventory: Starting inventory could cost between $5,000 and $15,000. This covers various types of motor oil (conventional, synthetic blend, full synthetic), different oil filters, and other maintenance supplies like lubricants and basic replacement parts.

Computer Systems: Point-of-sale systems and business management software might cost $2,000 to $5,000. This includes equipment for processing payments, managing customer records, and tracking inventory.

These estimates represent general ranges, and actual costs will vary based on size, location, and business model.

Resources:
Automotive Oil Change Association