How to start a mobile oil change business: a winning game plan

Starting a mobile oil change business is an exciting venture that combines mechanical skills with business savvy. The market for oil change services is a multi-billion dollar industry, with steady demand from individual car owners, corporate fleets, and ride-share drivers.

This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary licenses, and acquiring equipment to help you launch a successful mobile oil change business in the U.S.

Step 1: Plan your business and validate your market

First, define your target customer. Will you serve individual car owners, or focus on commercial fleets? Contact local businesses with vehicle fleets, like plumbers or delivery services, to gauge their interest and current maintenance costs. This direct feedback is more valuable than generic market reports.

Next, map your competition. Use Google Maps to find every mobile and brick-and-mortar oil change service in your target area. Note their prices and read customer reviews to find service gaps you can fill. Your local library may also offer free access to business databases for deeper research.

Estimate your startup costs

Your initial investment will likely range from $13,000 to $34,000. A reliable used van is the largest expense. A common misstep is buying a van that is too small; ensure it can hold your equipment plus enough oil and filters for a full day of jobs.

• Van or Truck (Used): $10,000 - $25,000
• Equipment (Extractor, Tools, Pans): $2,000 - $5,000
• Insurance and Licensing: $600 - $2,000
• Initial Inventory (Oil, Filters): $1,000 - $2,000

Here are 3 immediate steps to take:

• Identify and contact five local businesses with vehicle fleets to ask about their maintenance needs.
• Create a spreadsheet of at least 10 local competitors, listing their services and prices.
• Build a detailed startup budget based on the cost ranges provided.

Step 2: Establish your legal entity and secure permits

You’ll want to form a Limited Liability Company (LLC). This structure protects your personal assets, like your house and car, if the business faces a lawsuit. Profits pass through to your personal tax return, which keeps accounting simple when you are starting out.

Once your business is established, get a free Employer Identification Number (EIN) from the IRS website. You need an EIN to open a business bank account and to operate legally. The process is online and takes just a few minutes to complete.

State and local compliance

Your city or county requires a general business license, which typically costs between $50 and $150. The main compliance hurdle, however, involves waste oil. The Environmental Protection Agency (EPA) has strict rules for handling and disposal.

A frequent misstep is improper oil disposal. You cannot simply take used oil to a local auto parts store. Businesses must contract with a certified waste oil hauler. Failing to do so can result in significant fines that could shut you down before you even get going.

Here are 4 immediate steps to take:

• File for an LLC with your state’s Secretary of State office.
• Apply for your free EIN directly on the IRS website.
• Contact your local city hall to get a business license application.
• Research and get quotes from two certified waste oil haulers in your service area.

Step 3: Secure the right insurance coverage

Your business needs several layers of protection. Start with General Liability insurance to cover third-party claims, like a customer tripping over your equipment. You will also need a Commercial Auto policy for your work van, as personal auto insurance will not cover business activities.

Next, add Professional Liability insurance, also known as Errors & Omissions. This is for job-related mistakes, such as stripping a drain plug or causing engine damage. It protects you from the high cost of fixing a customer’s vehicle if something goes wrong during a service.

Coverage amounts and providers

Aim for at least $1 million in General Liability coverage. A combined policy with Commercial Auto will likely cost between $1,500 and $4,000 annually. Your driving record and the value of your van will influence the final premium.

It is best to work with insurers who specialize in auto services. You might want to get quotes from providers like Progressive Commercial, The Hartford, or Hiscox. They understand the unique risks, like oil spills or damage to customer property, and can offer appropriate coverage.

Here are 4 immediate steps to take:

• Request quotes for a $1 million General Liability policy.
• Verify your Commercial Auto policy covers business use and your equipment.
• Ask potential insurers about adding Professional Liability coverage.
• Compare rates from at least two specialist insurance providers.

Step 4: Outfit your van and secure supplies

Your van is your mobile workshop. You will need a secure, off-street location to park it and store bulk supplies. Check your local zoning ordinances, as some residential areas have rules against parking commercial vehicles or storing flammable materials like motor oil.

Key equipment and supplies

Your main equipment purchase is a fluid extractor. A mistake many new owners make is opting for a cheap pump that fails on the job. A reliable 6-to-8-gallon pneumatic extractor costs between $300 and $800 but prevents costly delays and protects your reputation.

• Fluid Extractor: $300 - $800
• Portable Waste Oil Tank (15-30 gallons): $200 - $500
• Spill Containment Kit: $100 - $200
• Filter Wrenches, Sockets, and Hand Tools: $500 - $1,500

For oil and filters, you can partner with local auto parts distributors. Ask them about commercial account pricing and delivery options. Avoid overstocking on a wide variety of filters at first. Start with filters for the 20 most common vehicles on the road to manage your initial inventory costs.

Here are 4 immediate steps to take:

• Research and compare three pneumatic fluid extractor models.
• Contact a local auto parts distributor to open a commercial account.
• Create an initial filter inventory list for the top 20 vehicles in the U.S.
• Check your local zoning rules for parking a commercial van and storing supplies.

Step 5: Set up your payment and booking systems

Most customers expect to pay with a card or digital wallet upon service completion. Relying only on cash or checks can slow your cash flow and appear less professional. You need a payment solution that works anywhere you do, without clunky hardware.

Payment processing

For a mobile business that needs to accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and you are done. Many processors charge 2.5% to 3.5% plus other fees.

At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for taking payment immediately after a job without carrying a separate card reader. Getting started is straightforward.

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available right on your JIM card as soon as the sale is done, with no waiting for bank transfers.

Here are 3 immediate steps to take:

• Download the JIM app to explore its features.
• Compare JIM's 1.99% rate to two other payment processors.
• Decide on your payment policy, such as payment upon completion.

Step 6: Fund your business and manage finances

With your startup costs estimated, the next step is to secure funding. An SBA Microloan is a strong option, offering up to $50,000. These loans often have interest rates between 8% and 13% and are accessible to new business owners, even without perfect credit.

Beyond equipment, you need working capital for the first six months. Plan for $15,000 to $30,000 to cover fuel, insurance, supplies, and a small salary while you build your customer list. This buffer prevents cash flow problems before you are profitable.

Set up your financial systems

Once you have funding, immediately set up your financial systems. A frequent misstep is to mix business and personal funds. Open a dedicated business checking account to keep your bookkeeping clean and protect your LLC status from day one.

From there, use accounting software like QuickBooks Self-Employed or Wave. They connect to your business account to track every dollar spent on filters or earned from a job. This organization makes tax season much simpler.

Here are 4 immediate steps to take:

• Research two SBA Microloan lenders in your area.
• Create a detailed 6-month operating budget for your working capital.
• Open a business checking account at a local bank or credit union.
• Compare the features of QuickBooks Self-Employed and Wave.

Step 7: Hire your team and streamline operations

As you grow, you will need a Mobile Service Technician. This person handles oil changes, vehicle inspections, and manages the van’s inventory. A mistake some owners make is hiring for technical skill alone. Your technician is the face of your business, so prioritize strong customer service skills.

Expect to pay a qualified technician between $18 and $25 per hour. You can attract better talent by offering a higher wage for those with Automotive Service Excellence (ASE) certifications. This credential also builds immediate trust with your customers.

Streamline your daily operations

To manage your schedule, you might explore software like Jobber or Housecall Pro. These platforms help you optimize driving routes, which saves fuel and time. This allows you to fit more appointments into each day and boosts your overall profitability.

As a solo operator, you can aim for $80,000 to $120,000 in annual revenue. When you hire a technician, a good benchmark is for them to generate two to three times their annual salary in revenue. This ensures your labor costs stay manageable as you scale.

Here are 4 immediate steps to take:

• Draft a job description for a Mobile Service Technician focusing on both technical and soft skills.
• Research local pay rates for auto technicians to set a competitive wage.
• Sign up for a free trial of a scheduling software like Jobber to test its features.
• Set an initial monthly revenue target based on your operating costs and profit goals.

Step 8: Market your business and get customers

Your first marketing priority should be a Google Business Profile. Fill it out completely with your service area, hours, and photos of your van. The goal is to rank in the top three map results for local searches like “mobile oil change near me.”

With your legal structure and insurance in place, you can now circle back to the fleet managers you contacted in Step 1. Present them with a formal service proposal. Landing just one small fleet contract can provide a stable revenue base from day one.

Build your brand presence

Your van is your most powerful marketing asset. A professional vehicle wrap is a mobile billboard that generates leads while you drive and work. A partial wrap might cost around $1,500, while a full wrap can be $3,000 or more, but the investment pays for itself.

A mistake some owners make is to pour money into paid ads before exhausting free options. When you do start paid advertising, aim for a Customer Acquisition Cost (CAC) under $60. If you spend $300 on ads and get five new customers, your CAC is $60.

Here are 4 immediate steps to take:

• Create and fully verify your Google Business Profile.
• Draft a service proposal to send to local businesses with vehicle fleets.
• Get quotes from two local shops for a partial vehicle wrap.
• Design and order 500 business cards to leave with every customer.

Step 9: Set your pricing and profit margins

Your pricing strategy should be simple for customers to understand and profitable for you. A tiered model works well. Offer options like conventional, synthetic blend, and full synthetic oil changes at different price points. This structure caters to various customer needs and budgets.

Determine your costs and markup

First, calculate your total cost per service. This includes the oil, filter, a share of your fuel, and insurance. A mistake many new owners make is to only mark up their materials. You must also charge for your labor and the convenience you provide.

Aim for a 100% to 200% markup on parts. For example, if a premium filter and synthetic oil cost you $45, your price to the customer should be at least $90. Your final price should land you at a 40% to 50% gross profit margin per job.

Use the competitor research you did in Step 1 to see where your proposed prices fit. You do not need to be the cheapest. Customers pay a premium for a service that comes to them. Your value is convenience, not a bargain-basement price.

Here are 4 immediate steps to take:

• Calculate your cost-per-service for conventional, blend, and synthetic oil changes.
• Create three distinct pricing tiers based on oil type.
• Set prices for simple add-on services like air filter or wiper blade replacements.
• Compare your final prices against the top three competitors in your service area.

Step 10: Maintain quality and scale your operations

To ensure consistent service, create a standardized checklist for every job. This should include steps like checking all fluid levels, inspecting tire pressure, and noting visible leaks. A frequent oversight is to rely on memory, which can lead to missed steps and unhappy customers.

Measure your service quality

You can measure quality with a few key numbers. Track your customer callback rate for mistakes and aim to keep it under 2%. You should also monitor your average Google review rating. A score consistently above 4.8 stars shows you are meeting customer expectations.

Know when to grow

A good benchmark for hiring your first technician is when you are booked solid two weeks out or your revenue surpasses $10,000 per month. Once you hire, scheduling software like Jobber or Housecall Pro helps manage multiple schedules and optimize routes for your team.

Here are 4 immediate steps to take:

• Create a standardized service checklist to use on every vehicle.
• Track your customer callback rate and Google review rating for one month.
• Set a monthly revenue goal that will trigger your first hire.
• Review the team management features of a scheduling software like Jobber.

You have a clear path to launch your mobile oil change business. Your success will depend on reliability and the convenience you provide. Build that trust with every service. With this guide, you have the foundation to turn your plan into a profitable reality.

A smooth customer experience also includes easy payment. With JIM, your smartphone becomes a card reader, so you can accept payments anywhere without extra hardware for a flat 1.99% fee. Download JIM and you are ready for your first job.