5 Reasons to Consider Investing in an Automotive Franchise in 2019

Unlike most businesses that rise and fall when fashion or technology trends shift, car repair franchises can offer stability, even when consumer demands change. The U.S. automotive franchising industry is expected to reach $41 billion by 2020, supporting the fact that customers will always be in the market for a trustworthy car mechanic or auto repair shop to keep their vehicle in top running shape. Here are a few reasons to consider investing in an automotive franchise in 2019.

1. Auto Repair Provides a Steady Income

During times when the economy is strong, auto repair shops can cater to both new and used vehicle owners by offering standard maintenance and repairs for much better prices than those typically charged at most auto dealerships.  During times when the market is down, consumers are more likely to hang onto their vehicles longer, considering it more economical to pay for car repairs than to buy a new car.

2. Customers Pay at the Time of Service  

While operating an auto shop requires a certain amount of equipment, franchise owners do not have to worry about having their cash tangled up in accounts receivable and extensive inventory.  Auto repair shops operate on a pay-at-the-time-of-service basis and very few repair shops hold large inventories of vehicle-parts. In most cases, owners will order parts directly to their location as the need arises.

3. Concrete Competitive Landscape

Unlike many brick and mortar businesses, auto repair shops have not been replaced by e-commerce or the “Amazon Effect”, and face little consolidation within the industry.  While major auto dealers offer repairs, their market share has been shrinking.  One reason for this is that auto dealers charge an average of 15 percent more for auto repair work than smaller vehicle repair shops. Studies have found that customers who go to independent auto repair shops report a higher satisfaction level than those who visit an auto dealer for repairs.

4. Achieve Work-Life Balance  

Another consideration when looking to invest in an auto repair franchise is the ability to create your own schedule. Many franchisees both within and outside of the automotive industry find owning their own business allows them the freedom to set aside personal and family time more easily.  Additionally, most car repair shops operate during business hours Monday through Friday and are only open until noon on Saturday.

5. Ownership Does Not Require Mechanic Skills

Owning your own auto repair franchise does not require you to have extensive training in auto mechanics. Running a successful auto repair business franchisees should own strong business management, delegation and networking skills. The bulk of the repair business involves maintenance work and minor repairs and there are many auto mechanics who can perform this kind of work.