Trends and Facts About Automotive Franchises
1. Americans are very fond of their cars. With a country as spread out as the United States, and with many Americans traveling daily for work or recreation, it makes sense that people want their vehicles to be dependable and comfortable. This reliance on car transportation has made the automotive industry a vibrant sector of the economy with a lot of room in the market for automotive franchises.
2. Automotive franchises cover a range of car-related services, including car product retail, repair services, valeting services, car washes, and car sale and rental businesses. Most franchises within the automotive industry are part of the automotive aftermarket industry, referring to products and services purchased after the sale of an automobile.
3. 75% of automotive repairs are done by independent auto repair shops, many of which are franchise businesses. Consumers trust professionals to handle their vehicle maintenance more than ever before. Major services within the industry include mechanical repair (about 50% of industry revenue), collision repair (30%), car washes (10%), and oil change and lube (10%).
4. Drivers are increasingly keeping their cars for longer, making regular repairs a necessity to keep the vehicles working smoothly. The average length of vehicle ownership for new and used vehicles has increased 60% in recent years – a big plus for auto franchises. The average age of a car on the road in the U.S. is a record-high 11.5 years old, and the number of vehicles on the road that are at least 25 years old is about 14 million.
5. The global automotive aftermarket industry is expected to reach $722.8 billion by 2020. U.S. automotive franchises account for about $41 billion of the global revenue.