Automotive Franchises: Still a Driving Force

Posted on June 02, 2011 by Bryan Nisperos

Despite the economic challenges facing the automotive world the industry is starting to rebound and still continues to be an important player and driving force of the U.S. economy. The automotive industry contributed to nearly 4% of the U.S. GDP in 2010 and continues to employ millions of American workers, and the industry is predicted to maintain stable growth over the next few years.

According to the 2011 Franchise Business Economic Outlook, automotive franchises grew 3.9% over the previous year in the number establishments and employment, and just over 7% in economic output with $39.7 billion. In a year when most businesses saw a decline, this shows the huge potential and opportunity the industry still holds for entrepreneurs aspiring to own an automotive business.

Understanding and taking advantage of trends within the industry can help potential franchisees choose their specific business. Two top automotive trends in particular are working to enable growth within the automotive service and repair sector. The first is that consumers are keeping their cars longer due to constrained budgets and increased overall quality prolonging vehicle life. An increase in older cars on the road ultimately leads to an increase in need for car repairs and maintenance. Secondly, increased fuel prices and concern for the environment are prompting an upswing in the sale of hybrid and electric vehicles creating a need for automotive businesses that can offer services for energy efficient vehicles. Keeping these trends in mind when selecting a franchise will be key.

There are dozens of different types of automotive franchises for an entrepreneur to explore: auto accessories, detailing, paint and body, repair, transmission, muffler, brake… the list goes on.

Below we will take a look at some of the top franchises in their category and specifically how much capital they require to start. This can be an important factor to consider when choosing your automotive franchise.

Top Auto Franchises to consider:

• NAPA Auto Parts - $75,000 Liquid Capital Required - Would you like to be part of a system supported by a Fortune 250 company that has experienced sales growth in 79 of its 83 year history including The Great Depression and every Recession since?
• AAMCO Transmissions - $50,000 Liquid Capital Required - When it comes to the transmission repair industry, AAMCO is number one. We're the #1 recognized brand... #1 national service provider... and the #1 rated transmission franchise by Entrepreneur magazine.
• All Tune and Lube - $30,000 Liquid Capital Required - Our "One Stop" Total Car Care Centers provide the franchisee the opportunity to build and expand their customer base, while maximizing individual customer sales, which leads to greater repeat and referral business.

Maaco Collision Repair and Auto Painting - $100,000 Liquid Capital Required - Our franchisees make money!! Incredible Hours, Incredible Industry and Incredible Earnings Potential. We dominate the automotive cosmetic paint market share at over 45%.