6 Reasons to Buy an Auto Repair Shop
Franchise ownership is often the most practical and most sensible way to become a business owner. But of all the franchises to buy, why should one consider an auto repair shop? What are the benefits of auto repair shop ownership? Here are six reasons to buy an auto repair shop.
1. You don’t need expert knowledge
Some people have worked in auto repair shops for years, even decades, before they go out and buy their own auto repair shop. Such people are in an ideal position, but you need not be an expert to buy an auto repair shop. Many are intimidated about buying an auto repair shop because they don’t know a carburetor from a transmission, but that’s not necessarily a problem. Any half-decent franchisor will provide an extensive training course and ongoing support to fill in the gaps of your knowledge.
2. There’s a lot of money involved
There’s a lot of money to be made by buying an auto repair shop. Auto repair shops account for a large portion of the automotive aftermarket. This is the term given to all business conducted concerning automobiles after their initial sale to the public. In 2018, the automotive aftermarket was valued at nearly $300 billion (USD) in the United States alone. If you remove transactions made by auto repair shops, this number is reduced to a fraction of itself. There are two main drivers for the current success of auto repair shops. The first is sheer volume. Most American households own a vehicle, and there are more Americans than ever, thus, there are more vehicles than ever. And these vehicles are, on average, older than they have ever been, and older vehicles need more service and repair than newer ones.
3. The auto repair industry is growing
The trends that have caused the value of the automotive aftermarket to grow are set to increase for the foreseeable future. This means that the market is growing and there is more and more business predicted to come to auto repair shops. Globally, the automotive aftermarket is predicted to reach a value of $722.8 billion in 2020, $1 trillion by 2022, and $1.4 trillion by 2024 (all figures in USD).
4. Repeat business
Another factor that makes buying an auto repair shop a good investment is the nature of repeat business. Customers are very likely to return to your auto repair shop if you go a good job. Automobiles require regular service and will need several repairs over the course of their lifetime. By doing a good job the first time, you can ensure repeat business for years to come.
5. Opportunities for savings
Auto repair shops can not be run cheaply. Parts and equipment cost a lot of money and are the biggest recurring expenditures for auto repair shops. But by buying an auto repair shop from a good franchisor, you can get access to a preferred vendor program that allows you to get high quality parts at reduced prices.
6. Good franchisors available
Many of the benefits to buying an auto repair shop listed above are only applicable if you buy from a good franchisor. Thankfully, there are good auto repair shop franchisors to be found. But no auto repair shop franchise is better than Tuffy Tire & Auto Service. To learn more, please contact us.Back