Are you considering investing in an auto parts franchise? Before you start your search, ask the right questions about the auto parts market to determine if it’s the best opportunity in the aftermarket auto industry.
The global microchip shortage, supply chain issues, and inventory challenges propelled the average age of cars on the road to an all-time high last month. S&P Global Mobility, an automotive data provider, puts the average age of vehicles on the road at 12.2 years. Safety concerns during the pandemic also prompted people to rely less on public transportation and fueled used car sales, pushing the age of cars on the road up.
As cars pack on the miles, parts wear out and need to be replaced. Frequent maintenance is a necessity, and demand for replacement parts increases. One major player in the auto parts industry reports it takes about 30,000 parts to keep a car running smoothly. With so many moving parts, an auto parts franchise seems like an ideal business model for an entrepreneur with a penchant for cars. Here are some important questions you need to ask before you take the leap.
- How much money do I need to invest? Opening an auto parts franchise is a costly endeavor. Some of the top franchise names in the industry require an initial investment of up to $850,000 to get the business up and running. The bulk of the startup costs can be attributed to real estate and stocking the franchise with the necessary inventory. Auto parts franchises also require a robust computer system to help car owners find the part they need to get the job done.
- Is the auto parts industry recession-resilient? Once you lay out the costs of getting your shop up and running, an auto parts franchise offers a recession-resistant opportunity for savvy business owners. There are projected to be 290.8 million cars driving on the road in the United States by the end of 2022. Having ready access to a vehicle is a necessity for the vast majority of Americans. The average American spends 59 minutes in their car each day, an earlier AAAsurvey revealed. Regardless of the ups and downs of the nation’s economy, keeping a car in working condition is essential, keeping the market for auto parts reasonably stable.
- What is the future of the auto parts industry? While the vast number of cars on the road makes owning an auto parts franchise appealing, the industry does have some drawbacks. Unlike a car mechanic shop, the future of the auto parts industry is not guaranteed. Today’s automobiles offer many high-tech features. Back-up cameras, GPS, and adaptive cruise control are the norm. With all these tech-forward features, making repairs on today’s vehicles requires ample training and know-how. Car mechanics rely heavily on employees with technical training to facilitate repairs. The average American can replace an air filter or change a car’s oil, but repairing a hands-free smart trunk or a side-view camera may be above their pay grade.
Advances in technology and high gas prices are fueling a rise in electric vehicle production. Electric vehicles have fewer parts and generally require less maintenance than traditional vehicles, painting a bleak future for the auto parts franchise industry. It will likely become necessary for auto parts franchises to evolve their business model to keep pace with the popularity of electric vehicles.
Moran Offers Attainable Alternative
If you are a car aficionado, a future in the automotive industry is attainable. Moran Family of Brands is a top auto repair franchise and offers a low-investment alternative for entrepreneurs considering a future in the aftermarket auto industry. Moran franchises six concepts in the aftermarket auto and window tinting industries, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint.
The initial investment to open one of Moran’s concepts starts at $118,200, including a franchise fee of approximately $52,000. Moran focuses on co-branding to offer its franchisees multiple revenue streams and lower franchise fees. Co-branding enables business owners to ink higher ticket prices and drives strong repeat business. Moran’s franchisees are a one-stop-shop for vehicle owners.
Every Moran franchisee attends three weeks of pre-opening training followed by consistent support. The company has a technology team devoted to tracking developments in the automobile industry to ensure its franchisees have up-to-date service information. They also track government regulations to advocate for their team.
Moran makes sure to keep the lines of communication open to help foster growth and innovation. For example, one of Moran’s newest concepts, Turbo Tint, was the brainchild of one of the longtime franchisees in its system.
Find Out More About Moran
To learn more about operating a franchise with a bright future in the aftermarket automobile and window tinting industry, click here to request information and connect with one of Moran’s franchise business consultants.