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Like pets, there is a segment of the population that considers their vehicle their “baby.” To the right, you will find a link to our detailed report on automotive franchises, which explains in detail why it is a good time to invest in an aftermarket franchise opportunity. In the meantime, here are some fast facts on the industry:
1. The average car on the road is about 10 years old. Consumers are keeping and driving their cars longer, which means they must use more maintenance and repair services.
2. Due to technological advancements and other factors, consumers are trusting professionals to handle vehicle maintenance than ever before.
3. Most franchises within the auto industry are part of the automotive (or motor vehicle) aftermarket segment. It's forecasted that total aftermarket sales will reach $273 billion by 2017.
4. Major services within the industry include mechanical repair (about 50 percent of industry revenue), collision repair (30 percent) car washes (10 percent), and oil change and lube (10 percent).
5. The automotive service industry is very fragmented. In the U.S. the 50 largest companies generate less than 10 percent of total revenue.
6. Even though the industry is fragmented, two big factors in profitability for automotive franchises are location and good marketing – and marketing and brand recognition is where franchise businesses have an advantage over privately owned, small business operators.