Franchise Spotlight: Auto Retail
Franchising offers a robust business model in the competitive auto retail sector.
The auto retail industry is made up of businesses that sell vehicle accessories and replacement parts to consumers, and those which sell new and used vehicles. Franchisees interested in this sector have a range of options available - including owning their store or working from home selling vehicles online. With retail sales of used car dealers reaching CA$12billion in 2019 (Statista), this is an industry worth investing in.
The amount of money consumers are willing to invest in their automobile needs will range, depending on their levels of disposable income, gasoline prices and their personal views on owning new or used cars. There is certainly a growing market for cars that lessen the environmental impact and new technology is supporting this movement with the introduction of electric, hybrid and even solar charging vehicles. Franchisees would be wise to consider the long term future of investing in cars and think carefully about the options for more eco-friendly models.
As more people choose to hold onto their cars for longer, for financial and environmental reasons, there is a greater need for businesses that supply replacement parts for vehicles. Midas, an automotive franchise, has a range of ways for new franchisees to invest, including the development of a new shop, purchase of an existing shop or the conversion of an existing auto business. AAMCO Whitby provides consumers with a one-stop-shop for vehicle care and repair needs, including air conditioning services and battery maintenance.
Auto Retail Industry Analysis
The auto retail sector is a highly competitive but changeable market and franchisees interested in investing in this industry will need to keep up to date with changes in consumer trends and advances in technology. This is where the ongoing support of an established business, as well as the banner of a successful brand, will be invaluable.
Customer service is vital to ensure a good reputation and return customers, so excellent communication and management skills will be important for those looking to work in auto retail. Franchisees will not necessarily need previous experience working in this industry, although it is certainly helpful. A passion for sales and an entrepreneurial spirit, alongside an interest in the automobile industry and a willingness to complete qualifications, will all be important.