What it costs to buy a tyre shop in Australia
Tyre businesses sit in a useful spot: recurring, non-deferrable demand, and a service most people will not attempt themselves. Around 73 are listed for sale nationally, from suburban shops to main street sites trading in the millions.
What tyre businesses sell for
| Recent listings | Asking price |
|---|---|
| Tyre and auto super centre, West Footscray VIC | $400,000 to $550,000 |
| Automotive franchise, revenue $1,400,000, adjusted profit $405,000 | $1,399,000 |
| Main street tyre business, Cootamundra NSW, 5 bay workshop | $2,000,000 |
| Tyre and automotive, Young NSW, 2026 sales $3.77m, net profit circa $432,000, rent income $73,500 | business and freehold |
The franchise listing is the clearest read on multiples: $1,399,000 for $405,000 of adjusted profit. Any listing without a profit figure attached is asking you to guess.
Tyres are the door, servicing is the margin
Notice how many listings describe themselves as tyre AND automotive. Tyre retail alone is competitive and price-shopped, with online sellers setting the customer's expectation before they arrive. The money is in what happens once the car is on the hoist: alignments, brakes, suspension and servicing.
So ask for revenue split by category. A business that is purely fitting tyres is more exposed than one where half the revenue comes from mechanical work, and it should not be priced the same.
Where the freehold is included
The Young NSW listing shows why it matters: on top of the trading business it earns $73,500 a year in rent from the property. Buying the freehold turns part of the deal into commercial property with an income stream, and it removes the lease risk that caps the value of every leasehold business.
It also changes the funding completely, which is usually the difference between a deal that works and one that does not.
Financing a tyre business purchase
Where the freehold is included, that portion is property-backed lending at roughly 6% to 9% p.a. The trading business and goodwill fund as business acquisition, and the workshop plant (hoists, tyre machines, wheel balancers, alignment rigs) funds as equipment finance against its own resale.
Splitting a deal three ways like that almost always beats funding it as one lump, because each part is priced against what actually secures it. Stock is separate again and is working capital, not a five year term.
This is general information only and not financial, credit, or tax advice. Prices are indicative market listings, not Ventas figures, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.
Frequently asked questions
How much does a tyre shop cost to buy in Australia?
Suburban tyre and auto centres list around $400,000 to $550,000. An automotive franchise with $405,000 of adjusted profit listed at $1,399,000, and a main street site with a 5 bay workshop at $2,000,000.
What should I check before buying a tyre business?
Revenue split by category. Tyre retail alone is price-shopped against online sellers, while alignments, brakes, suspension and servicing carry the margin. A purely tyre-fitting business is more exposed.
Is buying the freehold worth it?
It removes the lease risk that caps every leasehold business and adds a rental income stream. One NSW listing earns $73,500 a year in rent alongside the trading business. It also funds at sharper property-backed rates.
How is a tyre business purchase financed?
Usually three ways. Freehold as property-backed lending, goodwill as business acquisition, and workshop plant as equipment finance against its own resale. Stock is working capital, funded separately.
Get your number from the lender panel
The figures above are indicative. Tell us what you are buying and we will come back with the real rate and repayment, usually within a day. No upfront fees and no credit check to get a quote.
Licence, freehold and funding, read together
Tell us the LPO and whether freehold is included and we will structure it, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.