How to Start Mobile Oil Change Service Business

Do you want to start a mobile oil change service business with no or little money? Find here a stepwise business plan guide on starting this automobile-related business to the doorsteps of customers.

Is Mobile Oil Change Business Profitable?

The mobile oil change industry is big in the United States. According to IBIS, the last available statistics, it is about $7 billion US Dollars.

A person having a passion for the automobile industry and years of experience can start a profitable mobile oil change service business to make money out of it with a low startup capital investment. It is usually recommended that the vehicle oil should be changed at least after 5000 km or 60 days, whichever is earlier. Now the market of this business is growing rapidly because of the sales growth of the vehicles.

Mobile Oil Change Service Business Plan for Beginners

Here are the 10 steps one must follow to start and run a profitable mobile oil change business:

1. Learn the Trade

To get entry into the business, it is important that you learn all the mechanisms like how to change oil, which grade of oil is best to use for the specific vehicle, and which are not, how much quantity of oil is needed for a specific vehicle, etc.

However, you don’t need to have certificates or prior experience to start a mobile oil change service business.

2. Create a Business Plan

Like any other business, it is essential to have a well thought out business plan. It not only helps in creating a roadmap for the future functioning of the business but also helps in securing funds if needed.

The most important topic to be addressed in your mobile change service business plan are the following:

  • Startup and Recurring Costs
  • Your Target Customers
  • Pricing Strategy
  • How Much Profit You are Expecting?
  • Where you Plan to Sell?

3. Calculate the cost of Starting Mobile Oil Change Business

The cost of starting a mobile change business is mainly centered around purchasing fluids like oil, windshield washer fluid, antifreeze, and similar stuff. In addition, you need to invest in oil filters, a mobile truck or van, and oil dispensing systems like hoses, pumps.

On average, a mobile oil change business can be started with an investment of around $2,500 to $10,000. The cost will get reduced if you plan to provide the services with a used van instead of a newly purchased truck.

4. Name Your Business

Choosing a business name that perfectly relates to your business services is extremely critical to the long-term success of your venture. If you have not yet decided on your name for your mobile change service business, we recommend reading our article on how to name a business to learn more.

5. Register Your Business

If you are planning to run a legally compliant mobile change service company, it is essential to register your business. Every country and state offers different types of business structures under which a company is run. Select the one that suits you best based on your resources and scale of operation.

For example, if you are from the United States, the most popular business structure for small businesses are proprietorship, partnership, and Limited Liability Company. Most attorneys suggest forming an LLC as it saves personal assets in case the company is financially sued.

6. Licenses, Permits, & Insurance for Mobile Oil Change Service Business

In most countries, you don’t need much permission to operate this business. However, you must talk to a business consultant for a state-specific license that is required if any.

For some states in the US, there might be a need for specific licenses and permits to run an oil change business. Visit the official site of SBA and learn more about state-specific license requirements.

It is important to obtain insurance for your mobile oil change business and your car also. At any moment if your client’s car gets damaged you will ask for compensation and the insurance company can cover all the expenses on behalf of you.

7. Supplies & Equipment for Mobile Change Business

You need to find out the right equipment and supplies for your business. Also, you need to have a vehicle for mobility. Normally required equipment is oil filters, lubricants, and motor oil of different grades, storage vessels, and a pot to collect used oils. The estimated cost of starting the mobile oil change service business from home will be around $5000 to $10,000.

Find below a list of some basic tools to start a mobile oil change service business:

  • Hydraulic Jacks
  • Oil Filter Pliers
  • Oil Change Pump / Extractor
  • Oil Filter Cap Wrench
  • Oil Drain Pan
  • Oil Change Ramps
  • Oil Spill Mats
  • Set of work gloves
  • Fill Funnel
  • Synthetic Oil and Lubes (windshield washer, transmission fluid, brake fluids, and stuff like that)

You will likely have a storage space to keep all the equipment and the oils. Select a space that is damp proof.

8. Pricing

Decide the pricing of the specific service you are offering. To start with and break into the market it is advisable your price should be competitive and comparatively cheap.

The present price of existing mobile change business owners ranges in the range of $25-$60 depending on the location. Check the charges fixed by competitors and then create your pricing strategy.

8. Build a Client base

Contact potential clients and let them know how you will give them better services at a better price. Present your mobile oil change service business company with professional manners like with a business card and with the uniform. You can contact the car rental companies for bulk orders. You can offer a discount to the customers who booked an appointment for repeated oil change services.

8. Online presence

Create a decent and informative website for your business and go for some social media advertisements. Make an online booking system through your site and make your site enough information about the oil change.