AUTOMOTIVE FRANCHISING FEATURE

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The idea of running a franchise in the automobile industry is appealing to a lot of different people.

Most car brands are high end and well known to bring in substantial profit while the service side of vehicles could peak a lot of people’s interests.

Cars are a part of American culture and history. Nascar is a highly viewed sport, 90 per cent of Americans drive their car to work and there were roughly 210 million licensed drivers in the U.S. in a 2010 report.  Americans not only love their cars, they love understanding them and knowing them. It’s an important piece of iconic America.

A financially beneficial way for people to indulge in their interests for automobiles would be franchising. A franchise in automobiles sales and services would be a great investment for someone who has a lot of passion for cars, their history and make and would like to work directly with vehicles.

Auto maintenance and Repair Franchise

Nowadays, most families have two parents working and therefore two functioning cars. There are more vehicles on the road and people are commuting for a long time to get to work. These long drives create more and more repairs and the majority of the population is dependent on repair services.

People are not as interested in replacing their cars quickly, but rather keeping them as long as possible. The public is dependent on repair shops to get them back in their car as soon as possible.

It would be beneficial to have a background in car repair services or to have a better understanding of the functionalities of the franchise in order to run a repair shop. However, it would not be necessary.

A lot of customers depend on word of mouth when it comes to a trustworthy car repair shop and privately own businesses are plenty when it comes to vehicle repair and maintenance. Some shops have established a lengthy commitment to the community and a well established reputation.  This could be difficult to compete with and those interested in a repair franchise, should investigate the surrounding competition.

However, franchises specializing in Automobile repair usually offer a price difference which gains more customers. A well known brand can insure a trustworthy service to most of the population in comparison to a privately owned service.

Automobile Sales

People are dependent on their cars, it’s a regular part of most American’s everyday lives. Franchising a car dealership is more and more popular today and it boast great profitability with a high price tag and a lot of purchasers. In 2012, 7.2 million motor vehicles were sold to Americans and the number is always on the rise.

Dealerships took a hit during the recession, but car sales came back strong. This is a sustainable industry that will always remain in demand. Car franchises come with a strong brand name, various marketing tools and a lot of training for the franchisee. It’s a market that is easy to learn and is widely successful.

Unlike the repair side of the automobile industry, car sales are not competing on a high scale level with independently owned and operated dealerships.  Most private businesses in this field function on a much smaller scale and usually in used cars. A high end franchise has the means and finances to function on a grand scale.

The benefit of most car dealerships is their experience. The industry is well trained and well-versed in the business. They can offer successful guidelines that will lead to profit and the recession has lent some information about what to avoid in the future.

Most car dealerships are backed with a large budget for marketing offering high-end advertisement that will bring more people into your store. Franchisees can leave the majority of marketing in the hands of head office, loaded with professionals who will work for your business. It’s a relief for the franchisee, who can then focus on the business at hand.

Automobile Manufacturers

The same brands that dealerships are involved with are also a potential market for manufacturing. The Big Three in the States are known as Chrysler, Ford and General Motors. Between 1896 and 1930, there were 1,800 manufacturers as vehicles hit the market, but that number has significantly dropped and the Big Three dominate the US industry.

There are different types of manufacturing companies: those that make whole cars, ones that specialize in parts and those that create body and trailer parts. Again, they are dominated by the Big Three.

This type of industry has declined after the recession and dealerships changed their tune on opening massive amounts of manufacturers. Owning one would be harder to acquire and segregated to a certain area. The products would be very specific and particular to the dealership.

This type of franchise and business used to dominate the American market, but has taken a giant hit after the recessions. However, U.S. is the largest producer of vehicles in the world. There are now options to produce vehicles and parts on U.S. soil and export them out of country.

Manufacturers are taking advantage of easily accessible communication and marketing tools, and using technology as a means to upgrade their products and constantly keep the market fresh and competitive.

Though some franchisees may find this industry appealing and a passionate pursuit, it may also be restricted. The automobile industry can be extremely profitable but franchisees may find themselves at the demands of the franchisor.

The automobile is a part of American history and it’s ingrained in the economy. People are dependent on their cars and they need providers and caretakers to help them with their purchase. It will never be a dying industry and it’s a profitable and sustainable business that is ever growing and constantly evolving.

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