Facts About Car Repair Franchises
Car repair franchises are attractive investments to many entrepreneurs. With just a little bit of research, you can figure out why that is. But understanding all of these researched facts can be difficult for the uninitiated so rather than make you pore over all of the numbers and try to make sense of them on your own, we have decided to compile some of the most relevant figures for you in this article. Here are some key facts about car repair franchises.
Hundreds Of Millions Of Potential Customers
The degree to which any business captures a high percentage of their potential customer base is crucial to their success. But if your customer base is small, it might not even be enough if you corner 75% of the market, so the bigger your potential customer base, the more chance you have at financial success and the higher your potential profits can be. According to Statista, there are over 270 million vehicles in the United States. That is 270 million vehicles that could blow a tire, that could have a malfunctioning muffler, and that could have loose breaks. This means that the car repair industry has 270 million potential customers nationwide. Not unique customers, because some people own multiple vehicles, but 270 million vehicles that might, and almost certainly will, need repairs at some point.
Growth In The Automotive Aftermarket
Every single transaction that occurs which involves a vehicle after its initial sale to the public is compiled into a virtual market known as the automotive aftermarket. As you might imagine, car repair franchises are responsible for a huge percentage of the value of said market. And the automotive aftermarket is truly enormous. Globally, it has already reached a valuation of $1 trillion USD according to some estimates. And the United States is the single largest contributor to that trillion-dollar figure of any nation. And these numbers are only forecasted to grow. By 2024, the global automotive aftermarket could reach a value as high as $1.4 trillion USD.
Drivers Of Growth For Car Repair Franchises
There are two key figures that account for these huge numbers in the automotive aftermarket. One is simply the number of vehicles on the road. As population increases, so does the number of vehicles. But more crucially, the age of these vehicles is increasing as well. The average age of the cars in America is about high. Older vehicles are typically not as reliable as newer cars. They require repairs and service at higher rates and this means more business for car repair franchises. Hence the predicted growth for car repair franchises.
Required Investment For Car Repair Franchises
There is a lot of potential to make good money with a car repair franchise. But these are not cheap franchises. They require significant investment. The amount of liquid capital needed could be as high as $170,000 in some areas, with a total investment (including those costs which are typically financed) can be as high as $415,000. Car repair franchises offer a high probability of financial reward, but they are not get rich quick schemes.
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