One of the most exciting aspects of choosing to get into a franchise business is the ability to choose an area of focus based on your passion, so if your passion is cars then automotive franchises could be ideal as a franchise choice. For many there is nothing more thrilling than understanding, and working with automobiles. Since their invention around the turn of the 20th century, automobiles have fascinated the minds of many boys, men, and women alike.
If this field of business suits you then automotive franchises could be an ideal franchise opportunity.
Within the automotive sector there are many trends and opportunities to own an automotive franchises. Most investors in the sector wrongly assume they need to have millions of pounds to even get their food in the door. The reality is while there are some automotive franchises that do cost over £1,000,000, namely automotive dealerships; there are many other avenues to build a successful business working with automobiles without breaking the bank.
How much do automotive franchises cost?
The total cost of buying an automotive franchises ranges from as little as £1,000 to over a £1,000,000. This provides a variety of solid opportunities to invest and build an automotive franchise business. At the lower end, many are not dominated by expensive tools or owning a large inventory. The focus is on teaching a skill or method, usually of repairing a specific automotive part to the franchisee. Then the automotive franchises buyer builds a business offering their services. Higher price tags come with automotive franchises involved in selling full vehicles or car parts.
There are many types of automotive franchises with a range of different investments these include:
- Dent Repair – There are several different franchise opportunities in the auto body repair sector. Typical investments in a franchise of this sort ranges from £15,000 to £25,000 with some outliers. This outlay is usually designed to pay for training certification, and the purchase of the necessary tools through the franchisor.
- Rust Proofing – Due to much of the UK’s proximity to water, it is no secret that rusting is a problem afflicting vehicles here. This means there is a great opportunity with a low cost of investment to franchise a rust proofing and repair business. Typical investments in this line of automotive franchise generally start at £5,000 and increase modestly.
- Car Loan Brokerages – An emerging sector there are several car loan brokerages that have begun franchising their operations. These businesses typically have a very low investment as they are looking for sales people to sell car loans to people with less than stellar credit. Typical investment around £3,000.
- Wheel and Tyre Sales – Wheels and tyres are two areas with great margins, many providers, and customers that do not necessarily understand what they should be putting on their vehicle. As automotive franchises go this is an opportunity to build a stable client base that will return over and over. After all tyres only last for so long, and it is no secret people often choose to update their wheels with after market parts. The typical investment for a tyre and wheel business varies greatly from £25,000 to over £60,000.
Why Makes Automotive Franchises a Great Choice?
- Personal Interest – Many people have a great interest in cars. In terms of succeeding in any business including franchised businesses, it is important to be personally engaged in the project. A disengaged owner is one ingredient in the recipe for failure. If you do not like cars, then an automotive franchise is not for you.
- Repeat Customers – One of the most important keys to success in business is being able to build a base of repeat customers. As far as businesses go the automotive industry is one where customers are almost always available for repeat business. The reality is cars wear down, and break down, tyres grow old, and thin requiring replacement, and rust proofing needs to be completed frequently to have any impact. This means there is a lot of room to develop repeat business in the sector.
- Investment – As an industry there are a range of investment options to fit practically every budget. Car cleaning, dent fixing, window crack fixing franchises are all examples of automotive franchises with low startup costs.
- Customer Finance – Because of the financial shape of the automakers and their operations even customers that are not normally creditworthy can buy parts and service from the manufacturer. This means a long term supply of new customers and therefore work for your new business.
What types of automotive franchises are available?
- Driving franchises
- Vehicle retailing franchises
- Vehicle washing franchises
- Windscreen repair franchises