Is a Car Dealership Franchise a Smart Investment?
Owning a car dealership franchise comes with its share of high-stakes risks, including substantial investment costs, sensitivity to economic fluctuations, and stiff competition. If you’re still drawn by that new car smell, here's what you should know before you invest.
Pros and Cons of Car Dealerships
Being at the forefront of automotive advancements and fueling your passion for cars can be fulfilling. The opportunity to forge community ties and provide jobs adds to a dealership’s appeal. In 2023, at least 68% of people considered buying a new or used vehicle, according to Cox Automotive.
Are car dealership franchises worth the investment? Although Americans were on track to spend $40.8 billion on new cars in February, the initial investment for a car dealership is hefty, requiring significant capital for inventory, property, and the franchise fee. While there is a potential for high returns, economic downturns and current events can significantly affect sales and profitability. New car sales dropped sharply following the pandemic outbreak and the industry had to cope with ongoing supply chain issues. Overhead costs, including inventory management, are steep, and there’s a constant push to meet high sales targets.
Competition is another hurdle. You're not only competing with other dealerships but also online car sales platforms, which have revolutionized how people shop for vehicles, making the competition even fiercer. While only 7% of buyers purchased a car completely online in 2023, 43% relied on a “mix of online and in-person” to buy a car, according to Cox Automotive.
Shifting Gears to Window Tinting
Given the challenges associated with a car dealership franchise, exploring alternative automotive business ideas with potentially lower barriers to entry and less volatility can help you achieve your financial and lifestyle goals. Franchises like Turbo Tint specialize in automotive care beyond vehicle sales, providing services such as window tinting, paint protection, and detailing. Our brand typically requires a lower initial investment than dealership franchises and has lower overhead costs.
As intense weather patterns start to be the norm, people are taking steps to protect their vehicles. February 2024 ranked as the hottest February on record and marked the ninth month of record-breaking temperatures, according to the National Oceanic and Atmospheric Administration. Demand for window tinting and paint protection services is strong, driven by increasing awareness of the benefits, including UV protection, energy savings, and enhanced vehicle aesthetics and resale value.
Turbo Tint was developed by a longtime franchisee of Moran Family of Brands, Greg Goodman, and his son. Moran franchises six brands in the aftermarket auto and window tinting industry, including Milex Complete Auto Care and Mr. Transmission. The pair partnered with Moran to develop a window tinting service model featuring an online purchasing and scheduling system, coupled with fast installation. Our upscale waiting rooms offer complimentary beverages, Wi-Fi, and lounge-like seating. With our customer-centric approach, Turbo Tint quickly expanded its footprint. We have 11 locations serving customers and approximately 35 units under development.
Our franchise model is designed for efficiency, from online booking systems to professional training for technicians, ensuring high-quality service that builds customer loyalty and drives repeat business. Franchisees can take advantage of multiple revenue streams by offering both automotive and architectural window tinting. And we provide support for everything from site selection to marketing, the uncertainty that often accompanies new business ventures. The initial investment for a Turbo Tint location is $234,510 to $319,400.
Make the Right Turn
To learn more about how to become a franchisee with Turbo Tint and join the Moran family, connect with a franchise business consultant from our team.