There’s big money to be made in the auto repair industry. Finding an auto repair franchise that fits your budget and meets your goals can be a challenge as current events and consumer trends continue to evolve in the industry.
Auto Repair Industry in High Demand
Manufacturing delays, and high interest rates are reshaping the automobile industry. Chip shortages hampered auto manufacturers from keeping up with demand last year, sending new car prices through the roof. As a result, customers are holding on to their cars longer than ever. The average age of cars on the road is 12.1 years, resulting in high profits for auto shops as they ramp up repairs. The aftermarket auto industry is slated to generate $372 billion in the United States by 2024.
Environmental Concerns Fostering Change
At the same time, high gas prices, increased focus on the environment, and the development of improved technology are fueling a rise in electric vehicle sales. EV registrations are up 60% during the first quarter of 2022. Popular car makers, including Kia, Ford, and Hyundai, all debuted new models of electric vehicles this year.
Environmental concerns are helping foster change in the auto industry. Marking a new high, 44% of Americans worry “a great deal” about the environment, according to Pew Research. Global warming, water pollution, and air pollution are the top concerns among Americans. The environment is a particular focus among the millennial generation, which strongly supports a reduction in greenhouse gas emissions. Millennials are more likely to donate money, contact elected officials, and volunteer to protect the environment than older generations. As millennials overtake baby boomers as the largest generation, the automobile industry is honing its focus to comply with their environmental concerns.
Five Factors to Consider
Keeping industry trends top-of-mind, Creative Colors International formulated a list of the top five factors to consider when researching auto repair franchise opportunities. CCI is the leader in mobile leather repair for the auto industry.
- Investment. Have a clear idea of your budget and how much you want to invest when you are researching how to start an auto restoration shop. Having your finances in order will help reduce your pool of franchise options. Auto industry franchises run as high as $12 million for a car rental franchise to under $30,000 for a mobile detailing opportunity.
- Technology Focus. The increasing number of electric vehicles hitting the market requires car repair franchises to stay abreast of evolving technology to remain in operation. Unfortunately, labor shortages are making it difficult for auto shops to secure the highly skilled talent they need to serve customers. When you are shopping for an auto franchise, make sure the company has a pipeline to tackle the labor shortage and a plan to meet consumer demand.
- Brand Recognition. One of the perks of operating a franchise is brand recognition. Finding an opportunity with a long track record of success in the community and existing vendor accounts will ensure your start turning a profit quickly.
- Work-Life Balance. Many people choose entrepreneurship to improve their work-life balance. When you are selecting an auto repair franchise, it’s important to pick one that meets your goals. A brick-and-mortar shop has set hours and may require you to work long days to meet customer needs. Mobile opportunities provide a unique option by enabling you to set your own schedule and conduct back-office operations from a home office.
- Training and Support. Franchising helps provide entrepreneurs with a safety net. In addition to a proven business model, franchisees can reap the benefits of having ample training and support from the franchisor. As you research car repair franchise options, pay close attention to their startup training, as well as the ongoing support they offer. Staying abreast of the latest service developments and technology is key. Any franchisor in the auto industry should have a robust technology department to communicate with franchisees.
CCI Offers Franchise Advantage
If you want to own a business in the crowded aftermarket auto industry, it is attainable. Finding an auto repair business that addresses environmental concerns and labor shortfalls and also meets evolving consumer demands can be a challenge.
For more than 42 years, Creative Colors International has offered an auto repair franchise opportunity that ticks all of the boxes. CCI’s technicians specialize in reconditioning and restoring leather, vinyl, fabric, plastic, and carpeting for a variety of markets, including the auto industry. The home-based franchise offers a low barrier to entry and high growth potential. It costs between $86,980 and $102,410 to become a CCI business owner. Franchisees can start as owner-operators and slowly scale their business as they find reliable service technicians they can trust. As a bonus, CCI franchisees have the flexibility to set their own schedule, and ongoing support is just a phone call away.
Learn More About Partnering With CCI
If you are ready to learn more about CCI’s mobile car repair franchise opportunity, please visit CCI to request franchise information and speak with one of our franchise business consultants.