Considering purchasing an auto repair shop for sale? Moran Family of Brands provides essential insights on what to evaluate and how to determine if it's a profitable business venture.
Auto Industry Outlook
For most Americans, cars are a practical necessity for daily life, especially where public transportation is limited or non-existent. They’re essential for commuting to work, school, shopping, and other daily activities. The average American drives 13,476 miles per year and the average household spent approximately $12,295 on transportation in 2022, making it the largest expenditure after housing. Often, our cars are a symbol of status, success, and personal identity. As a result, demand for trusted automotive care remains high.
The auto repair sector has also demonstrated resilience, particularly in the post-pandemic era, and it’s projected to grow significantly. The auto repair and parts market is forecast to hit $953.87 billion in 2028, according to a report by Global Market Insights. Growth is fueled by the increasing average age of vehicles on the road, which now stands at 12.5 years, and a dip in new car sales. Auto repair shops with the ability to repair a wide variety of brands, as well as easy availability of spare parts, are helping the industry thrive.
Advances in automotive technology, including electric and hybrid vehicles, are expanding the market, and creating new opportunities for specialized services. Electric cars do not require oil changes, but they still need regular maintenance to stay in tip-top shape. Auto repair shops that stay abreast of new vehicle trends are poised for growth as vehicles continue to evolve.
Finding the Best Auto Repair Opportunity
The industry offers various shop types, including full-service, tire, and transmission repair centers. Each caters to specific needs and demands different investment levels and expertise. The profitability of a car repair business varies based on location, expertise, and service diversity. Modern vehicles, with their advanced technology, require specialized skills and tools, opening avenues for higher revenue for well-equipped shops.
When searching for an auto repair shop for sale, the choice of business structure is crucial. Independent shops offer freedom but require brand and customer base development. An auto body shop for sale can come with a built-in customer base, but it will require strong business acumen and industry knowledge to continue to be successful. Before buying, evaluate the local market, competition, and the shop's financial health. Understanding the shop's adaptability to innovative technologies and environmental regulations is also vital.
Franchise Ownership Benefits
Franchising can be a strategic choice. Franchises offer a proven business model, brand recognition, and ongoing support. When considering a turnkey business, you don’t need industry experience to run a profitable auto repair franchise, but you do need to be willing to follow a system to achieve your goals.
Here are some of the perks of partnering with a franchise to open an auto repair shop.
- Brand recognition: Franchise auto repair shops come with established brand names, enabling you to attract customers who prefer familiar and trusted service providers. Brand recognition can reduce the time and effort needed to build a customer base from scratch.
- Proven business model: Franchises offer a tested and proven business model. When you partner with a franchise, you're adopting a system that has already been successful, potentially reducing the risks associated with starting a new business.
- Training and support: Franchisors typically provide comprehensive training programs covering technical skills, business management, customer service, and more. If you don’t have a background in the automotive industry, having training and a strong support system is essential.
- Marketing and advertising support: Franchises often have national or regional marketing campaigns and strategies. As a franchisee, you benefit from a national footprint and omnichannel marketing effort.
- Purchasing power: Being part of a larger network gives you access to bulk purchasing deals for equipment and supplies, which can significantly reduce your operational costs.
- Ongoing operational support: Franchisors offer continuous support in various aspects of the business, including technology updates, operational procedures, and industry trends, helping you stay competitive.
- Networking opportunities: Being part of a franchise system allows you to network with other franchisees. Your fellow franchisees can be a valuable source of advice, support, and best practices.
- Access to financing: Some franchisors assist with financing the purchase of a franchise or have relationships with lenders who are more likely to finance franchisees, making it easier to get your business up and running.
- Territorial rights: Franchises often come with territorial rights, which can protect your business from internal competition in a specific area.
- Resale value: An auto repair shop for sale often has a higher resale value if it’s a franchise compared to an independent business due to its established brand and proven business model.
- Customer loyalty programs: Many franchises have established customer loyalty programs, which can help retain customers and bolster repeat business.
- Regulatory compliance: Franchisors often provide guidance and support to ensure your business complies with industry regulations and standards, reducing the risk of legal issues.
Moran Family of Brands: A Standout Choice
Moran Family of Brands excels with our diverse service range, from traditional repairs to handling advanced vehicle technologies. We’re the franchisor of six brands in the automotive and window tinting industries, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. We have more than 33 years of experience helping entrepreneurs build successful auto repair and maintenance businesses. To cater to current consumer trends, we’re focusing on co-branding. Having two brands under one roof allows our franchisees to be a one-stop shop for all their customers’ car care needs. It helps drive repeat business, and our co-branded units have higher average ticket prices.
Our focus on training and support equips franchisees to meet the industry's evolving demands. We provide a structured and supportive path to business ownership in the burgeoning auto repair market. Moran franchise owners receive two weeks of online pre-training, one week of intensive classroom training, and one week of field training at an existing center.
“Moran Family of Brands allows me to be an independent owner when I need to be but provides the guidance and direction needed when I am evaluating my business. Their advice and guidance have allowed me to grow my business in a changing economy,” said Jim Mitchell, a franchisee in Madison, Tennessee.
To help you hit the ground running, we also assist you in developing an initial advertising plan, and provide you with the specifications and designs for the development of marketing materials, including business cards, flyers, brochures, point-of-sale materials, and other promotional materials.
Take a Test Drive with Moran
If you’re searching for an auto repair shop for sale, partnering with an established brand to launch a business may be an advantageous choice. Connect with one of our franchise business consultants to explore what it takes to become a franchisee with Moran.