With oil prices remaining at uncharacteristically low levels and an aging vehicle fleet, the automotive repair industry in the U.S. remains in a strong position.
It’s Hard to Say Goodbye
The fact that more Americans are driving their cars longer than they were in the past isn’t exactly hot-off-the-press news, but it’s still a very significant trend for repair shops.
How long are consumers hanging on to their cars? Franchise Help’s Automotive Franchise Industry Report – citing data from R.L. Polk and Co. – indicated people are keeping their cars for an average of almost 64 months. Compared to 2014, that’s an additional 4.5 months. As a result, there are older cars and trucks on the road, many of which will build up wear and tear from extended periods of time in transit.
However, there’s ultimately a point at which consumers will have to buy new cars and trucks.
A Mixed-Up Landscape
Why are people keeping their cars for longer periods of time? Franchise Help explained that the Great Recession has had a lasting impact on the budgets of many Americans.
Yet, the quality of automobiles being produced is also impacting the rate at which consumers purchase new vehicles. Modern cars and trucks are built with greater care and quality. Still, the end result is a greater need for repairs and maintenance.
On top of that, recent sales figures suggest that new-car sales are increasing. Between 2014 and 2015, sales rose 11 percent, and there’s a strong indication that this trend will continue over the next few years. With that, the new fleet of vehicles on the road will be built with a greater amount of computer technology, including onboard navigation systems, backup cameras and a network of sensors.
As a result, consumers will be increasingly reliant on automotive repair shops that have the capabilities, expertise and technology to address the needs of both older vehicles and those coming off the assembly line.
Two Automotive Franchises Worth Consideration
These two automotive franchise investments are great opportunities for prospective entrepreneurs looking to take advantage of strong market demand.
With more than 43 years of experience in automotive painting and collision repair, Maaco is the No. 1 bodyshop in the U.S. Maaco repairs accident damage, dents and paint issues for almost 500,000 motorists annually. The brand has more than 450 independently-run franchises that work toward turning consumers’ vehicles back into the cars they love.
Founded in 1972, Meineke operates roughly 1,000 car care franchise locations in the U.S. and abroad. Meineke’s business model is built on complete vehicle care, making this automotive franchise a trusted name and a leader in the auto repair industry.
Questions to Consider Before Investing
Start exploring what franchise might be your best bet. Here are a number of questions and tips that can help guide you through the process of researching different types of franchises.
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