How to be Uber-like backyard mechanic for profit?

This is just a hypothetical question:

Say I learn the Tacoma left and right and down to a bolt and become really comfortable at performing complex and tedious procedures, such as valve rebuild, head gasket replacement, tranny rebuild etc. I focus on just one type of vehicle to isolate and focus my skill set (of course at the expense of the market coverage but we can all do only so much).

Let's say I've done those procedures several times and feel really comfortable doing them to the point of offering my services online in my backyard where I have all the tools, in addition to expertise.

What legal obstacles would I be facing if I were to Uber-ize my services competing with dealerships and other shops, which I guess are regulated, have insurance but also have rent and other overhead charges that become part of the bill? As taxis have become Uber-ized, I am thinking that direct matching of customers and contractors will become a reality in every other field, which will render the traditional business model of having a shop with all the overhead and regulation outdated.

This post is simply to inquire this hypothetical case scenario. I am not claiming to be a competent mechanic. I am just curious what laws you might run into etc., assuming that I'm not pissing off the IRS and that my tax filings look legit.

 

Biggest thing I think you would run into is for any liability for the work you preform and the something goes wrong. Would you have any kind of insurance to cover your back, just in case. I work on vehicles in my spare time for friends and relatives. I can pretty much work on anything with a motor or that rolls. But I do have to realize my limitations, I have a lot of tools and special equipment but I don't have every tool for every type of repair. As far as the gov is concerned, you can either do it as a small business or a hobby for filing taxes and stuff. I would say to be legal get a small business license, liability insurance on some type and get ready to work your butt off.

 

All I have is an anecdote. An acquaintance's Father loves to work on Mustangs. He has always loved them and worked on them and knows the ins and outs of probably every model year before about '95 or '96. He loves working on them so much that he literally doesn't have a job and has just been buying cheap old crappy 'stangs and making them like new in his driveway/garage since he was a teenager. The guy is super humble and quiet but a blast to listen to if you can get him to spit out more than about 5 words. Well, word gets around if you are good at something and so for the past 4 or 5 decades his primary source of income has been rebuilding Mustangs for cash. He does everything. He does the upholstery himself for godsake. He has no company, no insurance, doesn't do credit cards, and all of his money is tax free.

Just to be clear, I don't know the legal aspects of this sort of operation (other than the tax side being sketchy) but I can't imagine anyone trying to hold him accountable for anything as there is no paperwork and he doesn't advertise himself as a business. All of his work finds him through word-of-mouth. Perhaps legally speaking he is fixing up peoples 'stangs as a labour of love or as a gift to them or favour?.. then they give him some cash to compensate him for his time/parts? I don't know how this would work out legally or what would happen if someone tried to sue him, but given that there is no contract and I don't believe he is a certified anything... I can't see any grounds for someone to sue him on. Basically if you give him your car and shit goes wrong that's your fault. Granted, this guy is good. I mean ridiculously good.. Supported himself and his family in their house for decades just fixing up a car that he loves like nothing else in the world.

Food for thought. IMHO it seems kinda risky and strange but I have to plead ignorance as I do not know the business or the law particularly well if at all. Hope this was worth the read for someone!

 

If you accept payment, in any form you can be held liable. That use to be one thing they preached in paramedic class, if you are off duty and tried to help someone and things went bad. You couldn't be help liable for helping, but take something from them like a coke, smoke, food whatever. That could be seen as accepting payment and you could then be held liable. Highly unlikely to happen, but could still happen all the same.

 

I'll add this one piece of advice, if you don't feel perfectly comfortable putting your own family in the vehicle you just repaired. Then stay away from the repair. Just my .02. Good luck, there can be good money to be made in simple mechanic work oil changes, brake jobs, and preventative maint.

 

Payment doesn't make you liable. TOUCHING someones vehicle, does.

 

First if your working at home .

The first hurdle one has to deal with is zoning !!

Some places one can`t even work on there own vehicles

Some neighbors can be a real pain.

You need your parts vendors even so it is possible the parts you need could be 3 or more days out.

do you have room and is it safe to have them parked for a few days .

Taxes and Insurance can give most a big headache . Do something dumb and burn a fairly new truck !!

Depending where you are safety and Emission inspection license don`t have them ?? Your customers then go else where only to for the most find added problems before getting a sticker .

The hands on wrenching is the easy part it is the other aspects of business that gets most.

I know these is just war gaming about possibilities

 

I have seen detailers snd glass replacement guys working out of pickup trucks. I know of a blaclsmitg who will come to your farm in a fully loaded one ton so ur horses dont have to travel.

My local wood stove shop has a dedicated one ton for chimney installs. Crew cab with the back seat out to make room for tools, and they replaced the bed with an emormous bolt on tool box.

The biggest challenge i see is secure storage for all the takeoff parts. Like if you came ro my offive to replace the cig liter -power outlet you start by taking the plasric piecr off between carpet and metal in the drivees door sill...

 

Lemme put it this way:

"The best way to make a million dollars racing cars is to start with 2 million dollars"

Same basic principle applies, and that's BEFORE the lawyers show up

 

I do this, but only for my family and some close friends. LOF, brakes, basic repairs, etc. I use enough lubrication products in a year that it made sense to become an AMSOIL preferred customer for the discounts. My going rate is typically cost of parts plus beer.

Now for the part that actually pertains to you: look into getting a "hold harmless" document made up and have every one of your customers sign it. You may be an excellent mechanic, but all it would take is one litigiophile and you'll be homeless.

 

That's me 110%. I look forward to things breaking so I can take it apart and make it better. I am currently zipping up an almost full engine rebuild of my truck, everything short of the engine block. Tuned the valves, lifters, clearance, cleaned everything with toothbrushes, you name it, I did it. I rebuilt and rewired my whole house, including gas and electrical.

i am a nerd/geek from hell with poor people skills but my GF understands that and she puts up with my needs to be alone with my toys for days on end.

 

i learn for the next time and sometimes rely on the interwebs for diagrams and documentation (which is not always there).

because it is a huge PITA to keep track of things unless you have an existing system for how to do it. Smartphone with Evernote and Dropbox helps a lot but need other things as well. Such as this:

 

Plastic organizers from Walmart or Target are decent. As for tearing valves down, what works really well (except for the valves themselves) are ice cube trays.

 

As a Tech who left the dealerships to start my own shop, I will tell you the one bit of advice that is more important than ANY advice that ANYONE can give you. COVER YOUR ASS! You know that really good friend of yours? The one you have been best friends with since 3rd grade? Well he is your friend and has been for YEARS, but you work on his car and make ONE mistake that causes the friend to get hurt, or a family member to get hurt, and that best friend will become your WORST enemy. While I applaud you for wanting to undertake this adventure, I would make sure that you are 110% legal in everything. Having a simple disclaimer that they sign isn't going to protect you from a good lawsuit-happy lawyer. Just like the signs on the back of gravel trucks that say "not responsible for damage", they are not even worth the paint used to paint them on. Any lawyer worth his salt would rip it open. So make sure that you have insurance, proper licensing, and be safe. Working on a car in your garage for profit, and it accidentally catching fire, your homeowners insurance will bail on you in a SECOND. So be sure you are covered. I had a $2,000,000 insurance policy in my shop. Cost me about $90 a month.

 

That's definitely pretty sweet. I would consider getting this.

 

As a paid professional mechanic since 1980, read what BamaToy wrote. when you finish reading it read it again. If you work on one part of a persons car they will want Warranty on another part that you did not even touch, or blame you when something else goes wrong. I only work on my own vehicles. I learned my lesson dealing with people along time ago. just my .02

 

The thing is lots of the younger ones have no concept of what they can lose when things go bad and they will sooner or later .

Way to many Lawyers with to much Free time