The auto industry can be highly profitable. Learn more from Moran Family of Brands about how to start a mechanic business and what you need to begin.
Automotive Trends Bolster Car Repair Industry
Bolstered by the increasing number of aging cars on the road and high new car prices, the aftermarket auto repair industry’s outlook is strong. The U.S. mechanic market is forecast to generate $80.5 billion in 2023. The total number of vehicle miles driven in the U.S. increased to 3.3 trillion in 2022, and the average age of cars on the road hit a record high of 12.2 years.
Automobile dealers are still recovering from the fallout of the pandemic. Manufacturing delays and high supply costs are pushing the price of a new vehicle out of reach for many Americans. New car sales dropped 8% in 2022, marking the lowest number of new cars sold in a decade, according to Kelley Blue Book. While new car sales plummeted, the sale of electric vehicles set new records. Electric vehicle sales grew by 65% in 2022, Kelley Blue Book reports.
Proper maintenance and care keep older cars running smoothly and ensure their resale value remains strong when owners are ready to trade in for a newer model, making auto repair a hot commodity. Aftermarket auto shops with the skills and technology to maintain and repair electric vehicles are poised for growth in the years to come.
Getting Started
Starting a mechanic business can be a great opportunity to leverage your skills and passion for cars to build a profitable business. Mechanics can generate profit from labor charges, diagnostic fees, up-selling, and maintenance. Launching an independent auto repair shop may be challenging. An automotive franchise offers a turnkey business with training and support to help make becoming an entrepreneur accessible.
Moran Family of Brands is the franchisor of six brands in the aftermarket auto and window tinting industry, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. We have more than 33 years of experience helping new business owners succeed and build a legacy for their families.
To understand how to start a mechanic business and the benefits of opening an auto repair franchise, here are the steps to get started.
- Create a business plan. Before starting any business, it's important to develop a detailed plan that outlines your goals, target market, competition, financial projections, and marketing strategy. This plan will help guide your decision-making process and serve as a roadmap for your business.
Franchises offer an inside look at the initial investment and potential financial projections to alleviate guesswork to create a reliable business plan. For an initial investment starting at $118,219, Moran provides the keys to a proprietary business system and the pre-opening guidance you need to succeed.
- Find a location. The location of your mechanic business is crucial to its success. It’s important to look for a location that is easily accessible and visible to potential customers. Finding an existing mechanic shop can help cut down on costs. Franchisors have extensive experience scouting locations, and they will provide support and advice on picking an ideal spot for your mechanic business.
All of Moran’s locally owned and operated shops strive to establish themselves as fixtures in the communities they serve by providing superior customer service and being a one-stop shop for auto repair.
- Obtain necessary certifications and licenses. You'll need to obtain the necessary certifications and licenses to operate your mechanic business. This may include a business license, trade license, and any industry-specific certifications. Franchises provide the steps you need to take to navigate the red tape required to start a business.
- Purchase equipment and tools. You'll need a variety of tools and equipment to perform mechanic services. Moran has partnerships with vendors offering competitive prices to help make stocking your shop seamless.
- Hire employees. If you plan to run your shop successfully, you'll need to hire employees to help with the workload. Look for qualified mechanics who share your passion for cars and customer service. Moran forms partnerships at local technical schools to ensure its mechanic shops have technicians with the necessary skills to get the job done as technology evolves and software-based cars become the norm.
- Develop a marketing strategy. Building a solid customer base requires a hefty marketing program. Moran franchisees contribute to a creative fund to help market the brand nationally, and the company provides local marketing guidance, including creating a website.
Learn More About Moran
Starting a mechanic business requires an investment of time, money, and effort. With proper planning and execution, and the right franchise partner, it can be a rewarding venture.
To learn more about how to start a mechanic business with Moran, schedule a time to talk to connect with an expert from our franchise team.