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Curious about the price tag of buying a gas station? You're in the right place. From securing gas station loans and procuring equipment to considering franchises or starting from scratch, this guide has you covered. We walk you through every step of the process and effectively answer the question, “How much does it cost to buy a gas station?”
How much do you need to buy a gas station?
- A medium-sized gas station in the U.S. costs around $2.5 million; other stations can cost from $80K to $7 million based on several factors.
- Buying a gas station's cost hinges on location, station type and size, regulatory requirements, marketing, inventory, financing, operating costs, and unexpected expenses.
- Gas station operating expenses encompass staffing costs (salaries, benefits), utilities ($2,000-$5,000 monthly), and insurance ($30,400).
- Gas station financing includes traditional bank loans, SBA loans for gas stations, equipment financing, credit lines, leasing, and seller financing.
How Much Does It Cost to Buy a Gas Station?
Let’s say you've got your heart set on buying a gas station. What's the price tag? According to Profitable Venture, if you have your eyes on a mid-sized gas station in the U.S., you’ll likely pay about $2.5 million. But remember, that's just an estimate. You can wind up paying anywhere from $80K to $7 million to buy a gas station could, based on several factors we'll explore below.
Factors that Affect the Cost to Buy a Gas Station
Location of the Gas Station You Buy
Picture this: your very own gas station perched at the intersection of a busy highway - it's all about location, location, location, right? So without further ado, let’s see how the location factor affects the cost of buying a gas station.
- City vs. Rural: City and busy highway gas stations cost more due to high real estate prices but attract more traffic. Rural stations are cheaper but may see fewer customers.
- Proximity to Competitors: A gas station in an area with little competition might cost more, but the reduced competition could make it easier to attract customers.
- Zoning and Permits: The local zoning rules and the cost of any necessary permits can add to your overall cost. Make sure to check local regulations and the costs associated with them.
- Environmental Compliance Costs: Complying with environmental regulations is essential and can sometimes be pricey. You'll need to factor in potential costs for tank inspections or remediation work if there are leaks.
- Cost of Living: Living costs in the area where you want to buy the gas station can also impact your overall expenses. It affects everything from employee wages to the cost of goods in your convenience store.
Franchise vs. Independent Gas Stations: Cost Comparisons
Welcome to the age-old battle - owning a gas station franchise from a big name or your very own independent outlet. Each has its own costs and benefits. Which one works best for you? Let's look at the tale of the tape below and see how they compare side by side.