Guide
How to start a garage business in the UK
A practical checklist for opening an independent garage: premises, insurance, certifications, equipment, software and getting your first customers. Updated August 2026.
1. Choose your premises
You'll need a unit with vehicle access, adequate ventilation and space for at least two bays. Commercial leases typically run 3–5 years. Check planning permission allows motor-vehicle repair (Class B2 industrial use in England/Wales).
Key considerations: clear height for lifts, drainage for oil interceptors, parking for customer vehicles, and broadband for cloud-based software.
2. Register the business
Register as a sole trader or limited company with HMRC. If you're VAT-registering (mandatory above the £90,000 threshold as of 2026), you'll need Making Tax Digital-compatible invoicing. Garegi exports to Sage, Xero and QuickBooks, all of which handle MTD.
3. Get insured
- Motor trade insurance: covers road risks while test-driving or moving customer vehicles
- Public liability: protects against claims from customers or visitors
- Employers' liability: mandatory if you hire staff
- Tools and equipment cover: lifts, diagnostic tools, compressors
4. Essential equipment
- Two- or four-post vehicle lifts
- Diagnostic scanner (OBD-II and manufacturer-specific)
- Air compressor
- Brake lathe or disc skimmer
- Tyre changer and wheel balancer (if offering tyre services)
- Hand tools, trolley jacks, axle stands
5. Certifications
MOT testing
To become a DVSA-authorised MOT testing station, you need approved equipment, a nominated tester with a valid MOT tester qualification, and to pass a DVSA site assessment. This process can take several months, so start early.
Manufacturer approvals
Optional but valuable for marketing. Independent garages can join schemes like Good Garage Scheme, Trust My Garage (IGA) or manufacturer-approved repair networks.
6. Choose garage management software
From day one you need a system for diary scheduling, job cards, invoicing and customer records. Going digital early avoids the pain of migrating from paper later.
UK options include Garegi (£200/month flat with a booking website included), Garage Hive (from £145/month plus Microsoft licensing), TechMan (from £99/month plus credit charges) and Motasoft (from £65/month). Pricing checked 19 August 2026.
Compare systems · Cheapest options
7. Build an online presence
At minimum you need a Google Business Profile and a website. Garegi includes a branded booking website with service menu, MOT booking and tyre search at no extra cost, so you can skip the cost of a separate web developer in the early days.
8. Get your first customers
- Google Business Profile: free, shows in Maps and local search
- Word of mouth: still the strongest channel for local garages
- Leaflet drops: target nearby residential streets
- Online booking: let customers find and book you 24/7
- MOT reminders: once you have customers, automated SMS reminders bring them back
Typical startup costs
Every garage is different, but here's a rough guide for a two-bay operation:
- Premises deposit + first quarter rent: £5,000–£15,000
- Lifts and major equipment: £10,000–£30,000
- Tools: £3,000–£8,000
- Insurance (first year): £2,000–£5,000
- Software: £200/month (Garegi); some systems also charge setup fees of £500–£2,000
- Marketing and signage: £1,000–£3,000
Total estimate: £20,000–£60,000 depending on location, equipment condition (new vs. second-hand) and premises size.
Starting a garage? Start digital.
Book a demo and see how Garegi handles diary, job cards, invoicing and booking from day one.