Trends in Automobile Franchise
Automobiles are complex machines that increasingly include sophisticated computers. They are absolutely essential to the majority of the working population and are frequently a point of pride for their owners. They require both regular and emergency service, replacement parts, paint, cleaning, stereo system installations and a whole lot more.
The automotive aftermarket provides these parts and services, and largely flourishes during economic uncertainty. When people aren’t buying new cars they are keeping older cars longer.
Even new cars require regular service but as they age they require more care and they break down more frequently.
With the return of economic stability, new car sales have been increasing as well – but the aftermarket remains strong.
Older cars need more care and an aging and older national fleet is great news for aftermarket providers.
The automotive industry is a huge, diverse set of manufacturing and service businesses that bring cars and trucks to market, keep them in working order, paint, clean, fix and even trash them when it’s time. While there are often interesting business opportunities at the auto dealership level, it’s generally after the cars are sold that things get really exciting for those interested in franchising. A few examples:
Service work – maintenance or general repair: Specialty shops performing transmission work, repeatable oil change service, collision and more.
Tools! For the professional or home mechanic: Snap-on, Mac Tools + many more.
Glass replacement: Repair and decorative services
Car washes: Traditional and eco-friendly!
Miscellaneous: Driving lessons, a video game party truck and rubbish removal.
Rentals: Cars, moving trucks and even motorcycles
This list scrapes the surface but doesn’t even mention some obvious opportunities like gas stations (and now charging stations), taxi services, used car dealerships, detail shops, etc, etc, etc.
The increase in complexity of vehicles often requires specialized training. Repair shops can gain an edge by specializing and staying current. However, this specialization is leading to a shortage of trained techs in the market.
Electric and hybrid cars are bringing new opportunities to market– service, parts, and fuel businesses will need to expand to support these trends.
Service providers are now able to leverage technology to gain marketing efficiencies. For example, timely reminders about snow tires and oil changes have already proven to provide an uptick in return business.
New cars are getting more reliable. Improvements in technology and materials are increasing useful life and requiring fewer services. New cars, in other words, are able to last longer with less money spent on aftermarket services. Some automobile manufacturers are even recommending longer intervals between standard maintenance services such as oil changes or tire rotations.
There are a lot of cars on the road, and keeping them running, keeping them clean and making them your own is big business. This breadth of opportunity and such strong market trends make 2018 an exciting time to get involved!