Because of the fact that vehicles have become costlier to purchase, it should therefore not be surprising that car owners are now more interested in maintaining their cars. Some people have delayed repairing their cars because of less travel while others want to extend their vehicle life through proper service. That means the automotive service industry had grown across all sectors including the car franchise business in 2024.
The US automotive market has been growing a lot for years, and there are over 288 million cars on American roads today. Because the pandemic stopped the production of new vehicles, used car prices rose by 30%, higher than inflation.
This implies that the average age of vehicles is now 12 years, representing the oldest
Top 12 Automotive Franchises
As the automotive franchise industry expands, numerous automotive franchise opportunities have emerged in the United States. Below, we highlight some of the most automotive franchises to consider in the country in 2024.
1. Car Wash
The USA car wash industry had been estimated at $33.1bn in 2022 and will likely develop with a CAGR of 3.85% during the period from 2023 to 2030 (source). This consistent demand for automotive franchise industry is driven by vehicle ownership rise and the necessity for easy, fast, and quality car washing options.
Different types of car wash franchises can be highly profitable including self-service, automated, or mobile ones. Customers enjoy lower overhead costs associated with car cleaning services thus raising their profit margins.
2. Car rental
Consequently, the car rental business is flourishing, particularly in urban areas as well as tourist destinations. For many people, renting cars for specific occasions is becoming more attractive than owning them due to the thriving sharing economy that includes short-term rentals and ride-hailing companies like Uber and Lyft.
This auto franchise opportunity requires an initial investment between $250k-750k depending on fleet management methods that create internal profitability through strategic locations within target markets (source).
In the same vein, there are some particular periods such as holidays and travel seasons when revenues increase significantly.
3. Car services
Regular vehicle maintenance and auto repair shops continue to witness a high demand because many people now own cars (source). Conversely, vehicles are getting smarter day by day thus necessitating qualified professionals to handle them accordingly (source).
Auto service franchises can make huge profits from selling automotive equipment or products; and providing different kinds of automotive care maintenance services such as:
- sales of minor or major spare parts
- selling automotive oil or filters or brake pads
- repairing or replacing engines or transmissions or whole body parts
- and or any other kind of auto service franchise.
In this regard, initial capital ranges between $125k – 425k, thereby guaranteeing a steady flow of income due to the ongoing demand for such services (source).
So how do you get started?
Create a business plan for franchise owners:
This roadmap provides a structured framework, guiding decision-making and fostering a clear understanding of your business’s trajectory.
Identify sources of funds:
Establishing a robust financial foundation is crucial for sustaining and growing your venture from its inception and beyond.
Comply with legal and insurance requirements:
This involves understanding and adhering to regulations and obtaining necessary insurance coverage to foster the parent company’s credibility and mitigate potential legal complications.
Look for a suitable location:
Choosing an optimal location enhances visibility, customer accessibility, and overall business viability, contributing significantly to the success of your entrepreneurial venture.
4. Collision Repair Center
Collision repair centers like this car service franchise are very careful in doing this to cars that have had accidents before they can look as they were before. Franchise owners benefit from extensive training and support to ensure high-quality repairs and customer satisfaction.
Some of them specialized automotive services encompass:
- automobile body mend,
- paintless dent restoration,
- storm damage reinstatement (e.g. hail),
- and accident help 24/7.
It is necessary to study the following pointers before venturing into this automotive sector; such as population size, competitive environment, cost of living, and the local economy.
States with large populations are more likely to experience higher numbers of car crashes hence having high demand for collision repair services.
Secondly, it is important to think about going for a franchising model that has some networking opportunities through insurance companies.
These affiliations between a collision repair franchise and insurance partners are in many cases what will determine whether or not you make it in business.
Understanding these ideas and making good use of them would greatly enhance the performance and sustainability of your collision repair franchise business.
5. Auto detailing
The auto detailing industry is valued at nearly $13bn with over 3.2% compound annual growth rate expected between 2019 and 2025 (source). Therefore, there is a growing preference for vehicle exteriors that can last long too leading to the increased need for Details.
Opening an auto detailing outlet costs anywhere from $120,000 to $250,000. However, premium detailing and business owners’ inclination towards top-notch maintenance of their vehicles sustain this type of car care franchise with high returns on investment (ROI) as expected.
6. Charging station
Hence, there will be approximately twenty million eight hundred thousand electric cars by 2030 that require twenty-eight million charging ports. For this reason, the EV adoption rate keeps increasing while governments still provide incentives for zero-emission vehicles among other factors encouraging green transport transition. 28M charging ports are needed.
As many EVs become available on the market so does its profitability for those who decide to open up EV charging stations across different cities.
As far as profitability matters are concerned though all chargers cannot offer ROI equally since various charging levels exist such as Level 1, Level 2, or DC Fast Chargers where the latter ones give the highest returns.
Level 1 Charger
Suited for standard wall outlets, ideal for overnight charging at residences or low-mileage driving. One hour provides around 5 miles of range, catering to plug-in hybrid vehicles with smaller batteries.
Level 2 Charger
Operating on 240 volts, it is suitable for fast charging in public spaces or homes. Perfect for commercial opportunities, offering considerable returns on investment with multiple chargers.
DC Fast Charger
The fastest type, providing 250 miles of range in just one hour. Often used by specific outlets for premium charging, though compatibility issues with certain EVs may limit its viability for an EV charging station franchise.
7. Oil Change
The US oil change industry was valued at $7.48bn in 2022, and it is projected to grow at a CAGR of 5.3% between years 2023 and 2030 (source).
Moreover, this growth has been facilitated by an increase in car usage post-pandemic and a shift towards synthetic oils in the country.
Acquiring an oil change franchise can be an investment worth considering given that they are mostly required services. Thus, this sector’s growth trajectory coupled with the emergence of eco-friendly synthetic oils ensures a stable revenue stream.
8. Automotive accessories
The trend towards personalization of vehicles and the rising number of automobiles on the roads keeps sustaining demand for car accessories, contributing significantly to the automotive aftermarket industry. This segment complements other automotive services and increases revenues.
Automotive accessories franchises call for low initial investments but could be very lucrative if bundled with other services like detailing repair, or car washes. Income streams are diversified thereby drawing a wide market base.
9. Mobile Mechanic
Mobile mechanics are preferred by customers due to their convenience in terms of on-site repair services, as automotive franchises provide a wide range of services that align with customers’ preferences for hassle-free and efficient service provision.
Lower franchise fees at the start make mobile mechanic services a more profitable venture. Being able to reach directly to clients at their location also makes it appealing and attractive.
Services Offered:
Mobile mechanics typically offer a wide range of services, including but not limited to…
- Routine maintenance (oil changes, brake services, fluid checks)
- Diagnostics and troubleshooting
- Minor and major repairs
- Battery replacements
- Tire services
- Emergency roadside assistance
10. Window tinting
Window tinting as a customization option is still favored due to its aesthetics and the substantive advantage of UV protection and privacy provided.
The long-term nature of the window tinting business enables one to have recurring income from this venture. It is resilient during economic downturns and has low initial investment making it attractive as a franchise model.
11. Car battery center
Most automobile batteries have to be replaced every 3-5 years which leads to constant demand for trusted battery centers. Hybrid cars are becoming popular thus there will be a high demand for specialized battery services in the days to come in our society.
The range varied from $100,000 -$400,000 depending on the size of the store or location where it was located hence, it did not ask for too much capital outlay upfront. There is an ever-present demand for replacements that ensure continuous revenue, thanks to the need for professional and efficient battery services.
12. Brake repair shop
Regular brake maintenance is vital especially because brake repairs and replacements are popularly sought after by many people who own cars. Because brakes keep failing consistently there will always be a need regularly which means such businesses will always have demand for services.
Brake repair shops can bring in a lot of money since they perform brake maintenance which is essential. Such businesses provide revenues that are stable and recurring through both preventive maintenance and necessary repairs.
Final Thoughts
If you love cars, franchising can be a great opportunity to become your own boss.
The auto service industry brings many options to the table, including car washes, rentals, repairs, and tools. Car wash franchises are especially popular due to their low-cost initial investment, high-profit potential, and minimal overhead.
Whether you have prior experience or not, reach out to a free franchise consultant who can help narrow your search to top automotive franchises. And guide you in choosing the right automotive franchise opportunity for you.
Investing in automotive franchises could be the key to unlocking success in 2023 – why wait? Start exploring today! According to the latest franchise business review, many automotive franchises are recognized for their franchisee satisfaction and support.
