Before you begin scouring the listings for automotive shops for sale, Moran Family of Brands can help you learn what you should consider prior to making an offer.
Whether you are an automobile junkie or simply tired of climbing the corporate ladder, owning a business in the aftermarket auto industry is not out of reach. As the age of cars on the road climbs and the number of vehicles per household rises, the aftermarket auto industry is primed for growth. There are more than 284 million vehicles driving on roads throughout the United States, and the average age of those cars crept up to 12.1 years, versus 11.7 years in 2020. Aging cars, poor road conditions, and production slowdowns are helping fuel the aftermarket auto industry, according to Precedence Research. Despite rising gas prices, car travel was up 11.2% in December 2021.
Don’t rush into your venture. Take time to determine your goals and investment range before taking the leap to build a solid legacy for your family.
Moran Answers Business Startup Questions
Finding the answers to all of your questions will help your business get off to a solid start. Moran is a top auto care franchise with six brands, including Milex Complete Auto Care, Turbo Tint, and Mr. Transmission. With more than 22 years of experience in the auto repair business, we can answer some of the important questions you might have before you sign on the dotted line.
Is Franchising the Right Path?
Franchising provides a roadmap for new business owners. Operating a brand with a solid reputation and proven processes can make all the difference. Moran has the procedures in place to help you achieve profitability. We provide ample training, support, and guidance as you look for automotive shops for sale. Moran helps its franchise owners with site selection, equipment purchases, marketing, and more.
Today’s cars require multiple computer systems to run seamlessly and keep passengers safe. As more hybrid and electric cars hit the market, having a support system researching the latest developments in the auto industry will help you provide superior customer service. Moran’s online technology support system gives our franchise owners answers to their problems 24 hours per day. “We have a great technology department that does a lot of research and disseminates information out to franchisees — literally on a daily basis. We also do a lot of training videos and service bulletins with information that we get from manufacturers and other industry sources, like suppliers,” said Pete Baldine, Moran’s president. “It’s a big job.”
Should I Buy an Existing Shop?
Buying an existing shop might seem like a no-brainer. A re-sell allows you to cross off multiple line items from your to-do list at one time. The former owner picked the location, designed the layout, and hired the mechanics. Moran’s franchisees are making headway purchasing existing shops, allowing them to move their timeline to profitability at a faster clip and alleviate zoning headaches.
“It allows us to acquire that location and acquire the customer base that’s already there. They actually save money on equipment. We’re able to convert [re-sells] at a reasonable price. Instead of a franchisee starting from ground zero for sales, they might be starting with sales right from the beginning,” Baldine said.
There are pros to purchasing an existing auto shop, but there’s also a downside. To avoid some of the common pitfalls, make sure to ask the seller the basics. Seasoned shop owners who are retiring are good prospects for new owners. Find out if the store is currently profitable and its reputation in the local community. Building relationships is vital to drive repeat business. It’s also a good idea to find out the state of the equipment in the shop. If it needs an upgrade, it might not be worth the listing price.
Does Location Matter? In the past, having a big, splashy location in the center of town was an important tool to drive sales. New technology is helping alleviate some of the site selection headaches. Current customer trends find people reading online reviews and then plugging a location into GPS, enabling auto shops to open on roads less traveled.
“Mobile phones are having an impact on site selection. A new owner might not want to pay higher rent when everyone’s following GPS to the location anyway,” Baldine added.
What’s the Price Tag? Opening an aftermarket auto franchise removes some of the guesswork when it comes to costs. Moran’s team has a solid grasp of startup costs and the ramp-up on earnings. Our franchisees should expect to invest at least $118,219 to open their business. They also need a net worth of $250,000 for the company’s automotive brands and $60,000 in liquid capital.
Moran has partnerships with various providers who can help new entrepreneurs secure funding for their venture. Our existing franchisees can also help provide guidance and best practices to facilitate your launch.
Talk to a Franchise Expert at Moran
Find out more answers to commonly asked questions about automotive shops for sale, franchising, and Moran’s lineup of brands in the aftermarket auto and window tinting industry. Click here to request franchise information or to speak to one of Moran’s franchise business consultants.