What Are The Trends For Automotive Franchise Opportunities?
Automotive franchise opportunities have long been attractive to entrepreneurs looking to own their own business. Automotive repairs have always been in demand, but what are the current trends for automotive franchises?
In The Face Of The Biggest Disruption To American Life In A Century, Automotive Franchise Opportunities Did Not Lose Their Luster.
About halfway through 2021, any overview of any industry must consider the role COVID-19 has played. We’re nearly out of this pandemic now and while life is still not back to “normal” for many Americans, we can reasonably expect the end to come soon. You might surmise that automotive franchises saw a drop in revenue over the past 15 months or so. Afterall, people were staying at home more, going out less, and therefore there was less cause to seek automotive maintenance or repair.
With an industry as large as the automotive aftermarket—that is, the market that concerns all vehicle transactions after their initial sale—statistics and figures come in slowly. But near as anybody can tell, automotive franchises did not see a significant drop in revenue across the board. Maybe the people telecommuting were offset by those who chose to drive more to avoid public transit. Or maybe people just need their vehicles so much that they still need to use them during a pandemic. Whatever the reasons, automotive franchises demonstrated that not only are they nearly fully recession-proof, they also appear to largely be pandemic-proof. This only makes automotive franchise opportunities even more attractive.
What Do Sales Figures Tell Us About The State Of Automotive Franchises Today?
What statistics do we have with regards to some significant automotive franchise trends? First, let’s look at how many auto parts people are buying. This figure has reached an all-time high of $50.03 billion worth of auto parts sold! Even during a time when many people saw their income reduced, the sale of auto parts not only didn’t decrease, it increased to a record high.
Similarly, used vehicle sales also increased. This is more good news for automotive franchises because used vehicles need more repairs and maintenance than newer vehicles. This means if you were to capitalize on an automotive franchise opportunity today, you can expect to benefit from a high demand for your automotive repair and maintenance services. And these recent figures are in line with some of the long terms trends we’ve seen, such as the average age of American vehicles being at an all-time high.