Automotive Service Franchises and the Automotive Aftermarket
Automotive service franchises are franchise locations of a company that services, maintains, and repairs automobiles. Pretty simple. It’s a readily understandable business and that is to its benefit. But that doesn’t mean that making money with an automotive service franchise is necessarily simple. There are things you need to know about the automotive aftermarket before opening up your automotive service franchise.
The Automotive Aftermarket
The automotive aftermarket is a term used to encapsulate all business conducted that concerns an automobile after its initial sale to a customer. This means the selling of used vehicles as well as the repair and service of vehicles. The automotive aftermarket is an enormous industry both in terms of the scope of transactions and services it covers and in terms of the amount of revenue it generates. According to a report by Global Industry Analysts, the global automotive aftermarket is projected to exceed a valuation of $1 trillion (USD) by 2022. And a plurality of that money will be in the United States.
Clearly there is a lot of money in the automotive aftermarket and that number is growing ever larger. But as discussed earlier, the automotive aftermarket covers a lot of ground. How much of that money flows through automotive service franchises? Well, quite a bit, it turns out. A lot of that growth stems from the fact that the average age of the American vehicle has been steadily increasing in recent years. According to a 2015 article in USA Today, there are about 14 million vehicles on American roads that were at least 25 years of age. That number is up from eight million in 2002. Clearly, Americans are driving their vehicles for longer and longer. That’s good news for automotive service franchises. This is because older vehicles need more maintenance and repairs than do newer vehicles.
Automotive Service Franchises
Perhaps there is no bigger beneficiary in all of this than automotive repair franchises. Independent auto shops will benefit, too, but it’s tougher for them. Starting from scratch will always be difficult. But by purchasing an automotive service franchise, you’re getting a whole lot of advantages for that franchising fee. First, you get to buy into a brand name. Of course, this is useless if the brand name is unknown or, worse still, viewed negatively. But if you choose a company that is respected and liked and that has been in operation for decades, you’re getting a real advantage.
There are other things that automotive service franchisors can (and should) do for their franchisees. They should offer protected territories, meaning they won’t sell another automotive service franchise down the block from you. And of course they should offer ongoing training and support. This demonstrates that they are invested in your success. Lastly, the best automotive service franchises get to benefit from a preferred vendor program. A huge expenditure of automotive service franchises is what they have to spend on parts and equipment. By leveraging the buying power they have across all their franchise locations, the franchisor can get you reduced prices on top quality parts.
Get in Touch
If you would like to learn more about Tuffy Tire & Auto Service and the automotive service franchises that we have available, please contact us today.Back