Auto Care Franchises In 2021
The year 2020 was hard for a lot of industries and many industries hope for better in 2021. But are such hopes naively optimistic? What’s the outlook for auto care franchises in 2021?
Auto Care In The Era Of COVID.
Auto care franchises were, generally speaking, doing great in 2020 until about March. Then the coronavirus made its way to the United States in a big way. Businesses across the country shutdown and mandatory lockdowns saw life grind to a halt. Some industries—tourism, hospitality, event planning, etc.—still haven’t been able to even partially recover. Other industries have actually seen an increase in business.
Where do auto care franchises fall on this spectrum? People need groceries and many people need their cars to get groceries, or to get to work, or to run errands. And cars occasionally need maintenance and repair. If you need a car and your car needs service, then you need an auto care franchise. No virus can destroy that.
How Auto Care Franchises Did In 2020.
It stands to reason that auto care franchises should have got through 2020 relatively unscathed in comparison to other businesses. Afterall, auto care has a reputation for being a recession-resistant business. Do the numbers bear this out? Here are some key stats about auto care in 2020:
- Personal consumption of auto parts (that is, purchased by a customer from a retailer) reached an all-time high of $50.03 billion!
- How are people spending record amounts of money when the median American made less last year than in 2019? It’s simple: auto care is such a necessity that people spent more of their income on auto parts. They need their cars to work no matter what.
- Used vehicle sales are up. This is a trend we’ve been seeing for many years now and it continued in 2020. Used vehicles need more care than newer ones, so this drives up the demand for auto care franchises.
Will These Auto Care Trends Continue In 2021?
We’re all thankful that COVID-19 vaccines have started to be distributed, but the truth is the coronavirus will be a factor for at least most of 2021. But for auto care franchises, this shouldn’t be a big problem. If 2020 saw the continuation of trends from previous years, there’s no reason to think 2021 should be any different. As long as you operate an auto care franchise with a strict adherence to a clear and effective COVID-19 policy that includes the wearing of masks and face shields, physical distancing, and frequent handwashing, your franchise should do just fine in 2021.
Tuffy Tire & Auto Service