It’s Memorial Day weekend and with it comes the opening of State Parks, ice cream shops, campgrounds, and waterslides. In general, this holiday, although one of somber remembrance, heralds the onset of summer across the United States. What better time could there be to talk about cars?
Americans love their cars
In fact, there are approximately 260 million registered cars in the U.S., driving around every day. Here’s an interesting tidbit: 14 million of those registered cars, are over 25 years old. That’s right, we love our cars so much that we’re not giving them up. According to an IHS Automotive survey, the average age of a car operating in the U.S. is 11.5 years old and it’s projected that the number of vehicles that are older than 12 years will rise by 15% over the next five years. Hanging onto a car usually means some extra attention and maybe even a little babying, too. Some do this out of necessity, while others find complete joy in the idea.
There’s money in that
It’s for this very reason, the global automotive aftermarket industry is expected to reach $722.8 billion by 2020. If you’re wondering…of course there are franchises! The aftermarket sector is a big player in the Automotive industry, and franchises are a leading contributor to these numbers. What is the automotive aftermarket industry, you ask? In short, it covers all products and services purchased after the initial sale of a vehicle. This includes replacement parts, accessories, lubricants, appearance products, tires, collision repairs, the tools and equipment necessary to perform the work, and the list goes on. That spells opportunity for the many flavors of car enthusiasts! What is your flavor?
Show me the money
Now, what if I told you that the franchise industry has some of the most successful business niches currently available in the aftermarket world? In a recent ADP report, it was found that auto parts and auto businesses were the second leading job-creating franchises in the United States.
Let’s look at the trends over the last ten years –
The average age of the U.S. vehicle fleet has increased by 17%.
The average length of vehicle ownership for new and used vehicles has increased by 60%.
75% of aftermarket auto repair is by independent auto repair shops (only 25% of the business lives with dealerships).
There’s a trend toward large franchise auto repair businesses with smaller shops rolling up into them (that’s a good opportunity for profitable businesses on the service/seller-side).
The aftermarket world is changing and going online. Parts and even service are being sold online.
Explore your opportunities
Understanding all of this, Hundred Acre Consulting offers 23 different franchise businesses in the auto aftermarket sector. From customer-centric, eco-friendly auto care centers to B2B wholesales of every part and tool under the sun. These businesses have a quick ROI and can be purchased as a single standalone store or plaza anchor, or as two-packs, three-packs and in some cases, area developer models. With the majority available for less than $200,000 all-in, we can explore brand name franchises from $56,000 up to $1.1 million that will thrive in your area and you can be successful owning.
If you’re crazy about cars and always wanted to own a business in the industry or you are looking for a good business investment that is only getting stronger year after year, let’s talk shop and see if we can find a business that’s right for you.
Hundred Acre Consulting, with a portfolio of over 500 of America’s top Franchise and Business Opportunities can help you identify the best business to complement your goals, values, and vision for the future.