Market Indicators for Car Service Franchises
Do car service franchises offer good financial opportunities? There are hundreds of different types of franchises that one could buy, so why pursue a car service franchise opportunity? Each franchise opportunity will suit different people. The right franchise for somebody with your skills, experience, interests, net worth, and location might not be the right franchise for somebody else. But can we put aside personal variations and get an objective look at car service franchises? Yes, we can. The market is a reliable indicator of which franchises offer the best opportunities. So, what does the market say about car service franchises?
How Many Cars Are There?
A strong indicator of whether a franchise, or any business, will succeed is the size of their customer base. Some businesses can capitalize on a niche market and generate big revenues, but most businesses need a big customer base if they’re going to make money. Car service franchises are well situated in this regard. After all, there are a lot of cars.
There are over 276 million registered vehicles in the United States. That means there are 276 million potential customers for car service franchises. (Not unique customers, mind you, because some people own more than one vehicle.) The number of vehicles will vary from region to region of course (America is a big country) but what other industry can boast so many potential customers? There might be a similar number of phones or computers, but these are not serviced at nearly as high a rate as cars. The only other products that come close are staples, like toilet paper, clothes, and food. But there’s no such thing as toilet paper service franchise.
How Old Are These Cars?
Here’s another important number: 11.5. That’s the average age of an American vehicle. Why is this important. Well, first, it’s an all-time high and second, older cars need more service than newer ones do. There are also approximately 14 million cars that are 25 years old or older. So not only are there more potential customers for a car service franchise than ever before, these cars also need more service than cars ever have before.
How Much Money Is There In The Market?
Figuring out how much money all car service franchise locations across different car service businesses make collectively is difficult to narrow down, but we do have estimates on the automotive aftermarket. The automotive aftermarket consists of all transactions to do with cars after their initial sale. As you can imagine, car service franchises make up a huge amount of this market. And this is a huge market.
The global automotive aftermarket currently has an estimated value of $900 billion USD. That’s “billion” with a “b”. And this enormous number is predicted to grow, reaching about $1.34 trillion by 2030! Now these are global numbers, but don’t lose sight of the fact that this value is achieved largely on the back of car service franchises.
Tuffy Tire & Auto Service
So, do you want to get involved in an industry with a record number of customers and record high revenues? If yes, you should get in touch with Tuffy Tire & Auto Service. We offer qualified franchisees car service franchises with a trusted brand name and a track record of success.Back