Why Automotive Franchises Are Thriving In The USA
Discover why, of all the different kinds of franchises you could possibly buy, the best business for you is quite possibly an automotive franchise in the USA.
Why Are Automotive Franchises Thriving In The USA? Demand.
Few other industries are thriving in the US right now like the automotive business. Auto manufacturers are doing pretty well these days, but even more noteworthy is how the automotive aftermarket is doing. The automotive aftermarket constitutes all the transactions that involve automobiles after their initial sale. The automotive aftermarket is the secondary market of the automotive business and it’s primarily comprised of services that relate to auto service and repair, e.g., the manufacturing, sale, and installation of replacement parts.
Statista estimates the value of the US automotive aftermarket to be at $325 billion. The market has been growing for several years and that trend is expected to continue. Statista’s forecast has it reaching $372 billion by the end of 2024. The main reason for this growth is demand. And that’s not just because there are more cars than ever before.
Americans Are Driving Their Cars For Longer Than Ever Before.
With the United States population being at an all-time high, it makes sense that the number of vehicles on US roads is also at an all-time high. This drives growth in the demand for automotive franchises and that growth is steady and stable. But the real reason for the considerable growth in demand we’ve been seeing is that Americans are driving their cars for longer.
According to HIS Markit, the average age of vehicles on US roads is 12.1 years. That’s a record; it has never been measured at older than 12 before. Either because of cost, the wish to buy less for environmental reasons, or contentment with their current models, Americans are hanging on to their vehicles longer than ever before. But it’s not as if these vehicles are lasting longer because they’re perfectly made.
Older Vehicles Need More Service Than Newer Vehicles.
The reason why these figures matter for automotive service franchises are because older vehicles need more service and repairs. With more cars than ever before, and more of those cars needing more service than ever before, it’s not hard to see why automotive franchises are thriving in the US right now.
Tuffy Tire & Auto Service
If you think an automotive franchise might be the right business for you, you should contact Tuffy Tire and Auto Service. We offer some of the best automotive franchises in the USA and we are always happy to hear from people interested in becoming one of our franchise partners. To learn more, please contact us via our website or call (800) 228 – 8339.Back