Master Your Auto Repair Shop’s Financial Future

Thought interest rates had peaked? So did most of the country. So what happens when a customer needs a $10,000 repair, owns a home with hundreds of thousands in equity, and still can't pay?

Hunt Demarest, CPA with Paar Melis & Associates, returns to interest rates for the first time in over a year. He explains the Federal Reserve's quarter-point hike and why the relief expected in 2026 keeps slipping away. The Fed rate sits under every credit card, car note and mortgage your customers carry. Hunt shows why one good inflation report proves little when it's measured a new way, and how the K-shaped economy pays savers 4.5% while borrowers sink. He also says today's stock market looks like a shop that lives off three AI customers.

Then he looks at what this means for your customers. The 30-year mortgage is near 7.5%, up from 6.5% a year ago. Customers holding 3% mortgages can't or won't borrow against their homes to cover a big repair. Commercial loans written near 3% in 2021 are resetting around 9%, and some landlords locked into 10-year leases are telling their banks to take the building. Hunt explains why shops that own their buildings are better protected, why rising costs justify raising your prices, and why savers have rarely had it better.

Whether you're carrying a variable-rate loan, facing a commercial refinance, or watching customers turn down big repairs, this episode explains what's driving rates and how long they may stay high.

*What You'll Learn…*
00:00 Intro
02:17 Why the Fed rate sets yours
05:07 0% vs. 30% on the same truck
06:43 The inflation report that changed the math
09:00 The K-shaped economy
10:13 A stock market riding on three companies
12:14 Why 2026 didn't go to plan
16:37 The quarter-point hike and what's next
19:26 What high rates mean for your customers
21:04 Home equity customers can't touch
23:31 Commercial loans: 3% to 9%
25:29 Why landlords are handing back the keys

If you're ready to stop waiting for rates to fall and start planning your pricing, your debt and your cash around the rates we have now, this episode is essential listening.

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Did you buy a truck last December just to shrink your tax bill? Is the year-end bonus you pay yourself actually handing the IRS more money?

In part two of his tax series, Hunt Demarest, CPA with Paar Melis & Associates, moves from tax planning to the part every shop owner wants to hear about: paying less. He walks through six strategies and flags where owners get each one wrong. A $6,000 compressor saves you $1,500 but leaves you $4,500 poorer, while a $6,000 IRA contribution saves the same $1,500 and you keep every dollar. Hunt also explains why a small 401(k) can cost you thousands a year in fees, how an HSA works like a second retirement account, and why an S corp owner who bonuses profit onto payroll pays more tax. He closes with entity structure, where one election saved a client $25,000 in a year, and a simple rule for equipment: decide what you need first, and let taxes decide only when you buy it.

Whether you've never opened a retirement account or you're wondering if your entity setup still fits a shop that has doubled in size, this episode gives you a clear list to take to your accountant before year end.

*What You'll Learn…*
(00:00) Intro
(03:39) Hunt's money-back guarantee
(05:03) Why a $6,000 compressor is a weak deduction
(06:23) Retirement: time beats dollars
(07:32) When your 401(k) costs more than it saves
(09:11) HSA vs. FSA explained
(13:36) The S corp bonus mistake
(15:42) The $70K to $80K salary sweet spot
(16:59) Why gaming expense timing backfires
(18:21) Entity structure: the real found money
(20:18) Buying a truck to save taxes? Do the math
(21:40) When taxes should change your purchase timing

If you're ready to stop buying equipment just to dodge a tax bill and start paying yourself in a way that keeps more money out of the IRS's hands, this episode is essential listening.

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Do you actually know what you'll owe the IRS next spring, or are you just hoping it works out? And if your accountant has been extending your taxes for years, is that actually saving you anything?

This week, Hunt Demarest, CPA with Paar Melis & Associates, kicks off a two-part series on taxes by tackling the piece most shop owners skip entirely: tax planning. Hunt draws the line between tax preparation (backward-looking, mandatory, and reactive) and tax planning (forward-looking, optional, and the thing that actually keeps you from getting blindsided). He walks through the exact five-minute math he uses to annualize a shop's net income from partial-year numbers, why extending your return "to lower audit risk" is a myth, and the personal-return landmines, like ACA marketplace credits and phased-out child tax credits, that catch shop owners off guard even when the business side looks fine.

Whether you've never run a tax estimate in your life or you just want to sanity-check what your accountant is telling you, this episode gives you the framework to stop being surprised every April.

*What You'll Learn…*
(00:00) Intro
(02:29) Why this isn't the tax-saving episode you expected
(05:00) Tax prep vs. tax planning: it's about timing, not paperwork
(05:53) The financial-analysis cycle behind every good tax plan
(07:14) Why most shops never build a real tax plan
(09:08) Busting the "extending lowers my audit risk" myth
(09:57) When it's time to fire your accountant over extensions
(11:30) The annual tax planning calendar Hunt runs for clients
(15:04) How to annualize your own net income in five minutes
(17:09) Red flags: when your numbers swing too high or too low
(18:27) The 25% rule for ballparking what you'll owe
(19:53) Kids, credits, and the ACA surprise that blindsides shop owners

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Would you take the job you're offering your own technicians? Could a candidate's spouse be the real decision maker in your next hire, and do you know what she needs to hear?

Hunt Demarest sits down with Sam Freeman and Lisa Coyle from Promotive, the recruiting firm that places technicians, service advisors, and shop managers across the country, to talk about why so many good candidates never make it past the first ninety days, and why so many good shops can't fill a seat no matter how much they raise pay. Lisa and Sam walk through the data points that predict a bad hire before it happens, why flat rate is becoming a harder sell with both technicians and consumers, and why one in three shops is losing candidates over a benefits package that just isn't competitive. They also dig into the stat driving a lot of the industry's anxiety right now: seventy percent of people who take their first automotive job leave the trade within twelve months and never come back.

Whether you're struggling to fill a single bay or running a shop with a full crew, this episode is a reality check on what candidates are actually evaluating when they walk through your door, and what you can control when the market itself is working against you.

*What You'll Learn...*
00:10 Meet Sam and Lisa from Promotive
02:40 The 58% red flag before day one
04:02 The three-benefit tipping point
07:16 The case for hybrid pay over flat rate
11:16 What top techs ask before they say yes
16:53 Why 70% quit the trade and never look back
22:29 Everybody wants an A-tech, nobody wants to build one
26:23 The licensing trap costing shops candidates
32:46 Building the bench before you need it
40:33 Inside Promotive's portal, pricing, and guarantee
47:31 Your team is your best billboard

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Do you actually know your break-even point, or just a number that feels close enough? And if you hit it, would you even know why?

This week's episode started with a phone call. Hunt Demarest, CPA with Paar Melis & Associates, was walking a client through his numbers through July when he realized something: most shop owners can eyeball their break-even point, but almost none of them understand what's actually driving it. Hunt breaks down the fastest way to find your break-even using your own monthly financials, why a sales target is really just a stand-in for what you actually need (gross profit), and how to turn that number into real targets for cars, hours, and average repair order that your team can actually use. He also tackles the messy middle ground of cost of goods sold versus overhead, and why the math works out the same either way as long as you're consistent.

Whether you've never once run this calculation for your shop or you set your break-even years ago and haven't touched it since, this episode is a practical field guide to knowing the one number that tells you if your shop is actually working.

*What You'll Learn…*
(00:00) Intro
(00:44) Housekeeping: the book, the sponsors, and how to ask Hunt anything
(02:48) The client call that inspired this episode
(03:14) The fastest way to find your break-even: your own monthly numbers
(04:43) The reality check: making sure it's a true break-even month
(05:53) Sales targets vs. what your team actually needs to hear
(07:33) Cost of goods sold vs. overhead: the literal breakdown
(11:21) Building your gross profit target from three financial categories
(16:25) The margin math: why 50% gross profit beats 30%, every time
(17:45) The revolving cycle: why this number needs regular updates

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Are you accidentally paying taxes on money you're never actually going to collect? Could the way you're deleting a bad ticket in your shop management software be costing you more than the deadbeat customer ever did?

This week's episode started as a text message. Hunt Demarest, CPA with Paar Melis & Associates, answers a question from fellow podcaster Chris Cotton of AutoFix Shop Coaching and The Weekly Blitz: how should shops actually handle bad debt? Hunt breaks it down from the ground up, what bad debt is, how cash versus accrual accounting changes the math, and why deleting or discounting a ticket instead of writing it off properly can quietly inflate your tax bill and hide real problems in your production numbers. He walks through the exact steps for building a "bad debt" payment type into your shop management software, how to automate the accounting through Back Office and Accounting Link (or handle it manually with a journal entry), and where chargebacks, bartering, and shop vehicles fit into the picture.

Whether you've never had a customer stiff you or you're staring down an invoice right now that you know you'll never collect, this episode is a practical field guide to keeping your books, and your tax bill, accurate.

*What You'll Learn…*
(00:00) Intro: Chris Cotton's bad debt question kicks off the episode
(00:46) Housekeeping: the book, the sponsors, and how to ask Hunt anything
(03:11) The four part question: where it goes, how it's recorded, and chargebacks
(05:28) What actually is bad debt: cash basis versus accrual, explained
(07:58) The tax trap: why ignoring bad debt means overpaying the IRS
(08:50) PSA: your AR is only as accurate as your shop management software
(12:21) The correct way to book a loss: sales, cost, and the bad debt line
(13:51) Why deleting the ticket hides your real production story
(16:54) The nuts and bolts: creating a bad debt payment type
(19:03) Automate it: Back Office, Accounting Link, and manual journal entries
(21:03) Chargebacks, bartering, and shop vehicles: same rules or different?
(23:10) Closing thoughts and how to reach Hunt

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Are you chasing being rich, or are you actually building wealth? Could the shop owner making $150,000 a year retire with more freedom than the one clearing $800,000? Hunt Demarest has seen both, and the answer might surprise you.

In this solo episode, Hunt Demarest, CPA with Paar Melis & Associates, steps away from the usual business valuation talk to tackle something he says matters even more to a shop owner's future: personal finances. Drawing from a four hour class he taught at the STX Conference, Hunt breaks down why so many disciplined, profitable shop owners still end up with disorganized personal finances, and why that gap, not their business's sales or profit, is the real predictor of a happy retirement. He walks through the difference between being rich and being wealthy, tells two real client stories with opposite outcomes, and unpacks the habits, from unchecked debt to keeping up with the Joneses, that quietly derail decades of hard work.

Whether you're chasing a bigger number on your P&L or wondering why your bank account never seems to reflect it, this episode is a mirror check on the financial decisions that actually determine your future.

*What You'll Learn…*
(00:00) Intro: STX Conference recap and a preview of this week's topic
(03:04) Why chasing business value misses the real retirement risk
(06:11) Rich versus wealthy: the distinction most shop owners get wrong
(08:01) The client who went broke rich, and the one who quietly built wealth
(09:29) How consistent saving beat a six figure income, a paid off real estate story
(15:07) Why the market has zero interest in educating you about your money
(16:47) The rat race: keeping up with the Joneses, personally and in the shop
(17:40) The one number most owners can name for their business but not their life
(21:08) Debt is easier than ever: the $2 million sale that couldn't cover the bills
(23:11) Mortgaging your future: what really keeps shop owners working past retirement age
(23:43) Closing thoughts and how to reach Hunt

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Why do two auto repair shops with virtually identical profit sell for wildly different amounts, one at a nine time multiple and another at three? And if you're not planning to sell anytime soon, does any of this even apply to you?

Recording a preview of the class he's teaching live at the STX World Pac Conference in DC, Hunt Demarest breaks down the factors that quietly decide what your shop is actually worth when a buyer sits down at the table. Hunt walks through why timing your exit three to five years out changes everything, why one client's prized fleet contract almost killed his sale, and why buyers pay for a business that runs without you, not a high paying job with your name on it. Along the way, he covers the optics of clean financials, how far you can push ad backs before a bank or a buyer walks, and why new equipment won't add a dollar to your sale price even though old equipment will cost you one.

Whether you're planning to sell next year or you never plan to sell at all, this episode lays out the groundwork every shop owner needs long before a buyer ever walks through the door.

*What You'll Learn…*
(00:00) Intro
(00:12) Why Hunt is previewing his STX class on maximizing shop value
(03:46) The World Pac Conference and why this class exists
(03:58) Why identical shops sell for wildly different multiples
(06:13) Timing: the 3 to 5 year rule before you sell
(07:32) Your shop is your retirement plan whether you planned it that way or not
(10:16) Customer concentration: the fleet account red flag buyers watch for
(10:38) The ambulance contract that nearly killed a client's sale
(15:50) Continuity: buyers pay for a business, not a job
(18:39) Clean financials: why optics matter as much as the bottom line
(20:29) Ad backs: how much "creative" bookkeeping a buyer or a bank will accept
(21:53) Equipment: the double edged sword of new gear

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


Got questions or feedback, connect with Hunt Demarest at:
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Why are less than 10% of shops operating within even 40% of what they're actually capable of? And if throwing more money at your technicians won't fix your productivity problem, what will?

Hunt Demarest sits down with Chris Cotton of AutoFix Shop Coaching, fellow multi-shop owner and host of The Weekly Blitz, to translate this year's Auto Shop Benchmark Report into real, actionable advice. Chris breaks down the three real barriers to productivity, the technician, the environment, and leadership, and walks through the shop floor fixes that took one client from $180,000 a month to $350,000, and another from under $200,000 to nearly $400,000. Along the way, Hunt and Chris dig into why fewer than 20% of technicians today are actually money motivated, why flat rate isn't the productivity silver bullet most owners assume it is, and why the fastest way to fix a struggling shop is almost never to yell at the guys in the back.

Whether you're staring at a productivity number you don't understand or you already suspect your shop is leaving money on the table, this episode is a practical field guide to turning benchmark data into a better bottom line.

*What You'll Learn…*
00:00 Intro
03:49 Track it, measure it, fix it, why coaching outperforms data alone
06:44 The three real barriers to productivity: tech, environment, leadership
08:24 The diesel shop step-counter experiment
12:28 The Rochester shop that went from $180K to $350K a month
17:04 The $90 consultation fee that stopped diag from bleeding money
21:57 Why fewer than 10% of shops hit 40% of their real capacity
26:43 Why 50% of top shops are hourly, not flat rate, and pay isn't everything
30:22 The flexibility that keeps a top tech loyal without a raise
33:45 Car counts, layoffs, and the hard call every owner eventually faces
36:38 How to get a free 30-minute shop consultation with Chris

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


Got questions or feedback, connect with Hunt Demarest at:
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

Download the Automotive Repair Podcast Network App: https://automotiverepairpodcastnetwork.com/