The automotive franchise industry isn’t just about selling cars, but is an assortment of markets that all centre around automobiles; from car rental businesses to alloy cleaners.
So, if you are interested in cars, there are plenty of franchises for you to consider. However, before you choose to invest in an automotive franchise, it's essential that you do your research. Just as with any franchise, you should review the market to ensure you're making a good decision.
By keeping an eye on automotive news, you can gain an understanding of how the manufacturing market is performing. The strength of this market is critical for whichever automotive franchise you choose because if there are more cars on the road, they'll need more services.
However, before we take a closer look at the automotive sector, let’s consider how much money you can make owning an auto repair shop.
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What is an auto repair shop owner?
An auto repair shop owner provides repair services for automobiles, oversees a team of employees and is in charge of their business’ growth and profitability. Usually, individuals who are passionate about mechanics and are business-minded lead this role.
What are the pros and cons of owning an auto repair shop?
One of the main benefits is that you have the flexibility to work the hours that suit you. If you need to take some time off to attend an important family event, you can, because you’re in charge. Or if your babysitter cancels and your children need to stay with you at the shop for a couple of hours after school, this is fine too.
However, despite there being flexibility, you often find that auto repair shop owners work incredibly long hours, particularly in the initial stages. Also, you will probably need to be prepared to work late to suit the needs of a particular customer when your staff aren’t available.
How much money can you make owning an auto repair shop?
Automotive service technicians and mechanics have an average salary of £32,500 in the UK. But the top earners can receive close to £40,000. It will come as no surprise that an auto repair shop owner will earn considerably higher than this.
It mainly varies according to how much experience technicians have, how long the business has been running, how many hours they put in and how profitable the business is. To give a rough estimate: in the first two years, the income might be around £44,200, after five years, £45,800, and then after ten years, £48,300. But this isn’t to say that there isn’t scope to earn even more.
Automotive news UK
It appears that things are looking healthy for the UK automotive industry. In fact, with a turnover of £82 billion, it plays a crucial role in the UK economy. According to SMMT (Society of Motor Manufacturers and Traders) Motor Industry Facts 2018, around 186,000 people are employed directly in car manufacturing, and over 856,000 are employed in the broader automotive industry.
How many cars are on our roads?
When you consider that there are more than 34.7 million cars currently on UK roads with 2,540,617 new cars registered in 2017, the market is still huge. This automotive news should be music to the ears of aspiring entrepreneurs who wish to become franchisees in this market. More cars on the roads equal more work for automotive franchises of all kinds.
Taking these facts into consideration, the automotive industry can be described as robust. Of course, with so many technological changes in this sector, it's difficult to say how long it will remain this way. However, regardless of changes that may affect car sales and usage, people will still need vehicles to support their busy lives. As long as you choose the right franchise that is forward thinking and willing to move with the times, buying an automotive franchise is a pretty secure investment.
Automotive news Europe
Automotive news from Europe also paints a positive picture for the industry. A vast 13.3 million people, or 6.1 percent of the EU workforce, are employed in the sector. Manufacturing accounts for 3.4 million jobs alone.
Statistics produced by the EAMA (European Automobile Manufacturers Association) state that in Europe, 19.6 million vehicles are manufactured every year. This makes automotive manufacturing a strategic industry within the EU.
What’s more, Europe's cars, trucks and buses are classed as the cleanest, safest and most efficient in the world. Manufacturers in Europe use pioneering processes that rely on less water and energy used to manufacture a vehicle, and reduced CO2 and waste emissions.
Automotive franchise opportunities
Although no experience is usually necessary to run an automotive franchise, a passion for cars will help. There are lots of different opportunities available for investment, so do your research and make sure you find the right franchise for you.
The Wheel Specialist
The Wheel Specialist was first franchised in 2007, but its origins can be traced back to 1955. Since then, it has become the leading alloy wheel refurbishment franchise in the UK. It specialises in alloy wheel repair, customisation and refurbishment for a wide selection of vehicles.
To become a Wheel Specialist franchisee, you’ll need to make an initial investment of £44,997 plus VAT. You’ll also need access to liquid capital reserves of at least £40,000. Once you’re on board, you’ll attend a comprehensive training programme, be granted access to digital systems, receive marketing tools and get ongoing advice and guidance as and when you need it.
This innovative brand is the first online tyre franchise in the UK. Etyres’ business model sets it apart from its competition, as it offers its services from a fully equipped van nationwide. This means that customers can choose the time and the place of the service to suit them.
The Etyres support team helps its franchisees become confident business owners. Franchisees will be trained on the products, sales strategies, data management, IT systems and more at the head office.
If you’re passionate about the business concept and eager to make your mark in the automotive industry, Etyres encourages you to apply. You will need to secure a minimum of £24,000 to be accepted. But don’t worry if you don’t have access to the full amount; most banks may lend up to 70 percent, depending on your financial history.
Optic-Kleer is the UK's leading windscreen repair specialists. Founded in 1991, the franchise has created a unique business model with franchisees operating out of the car parks of supermarkets and shopping centres. This enables repairs to be carried out while customers shop for ease and convenience. There are currently around 50 franchise units all over the country, but expansion plans are in the place to grow significantly.
If you decide to become a franchisee, the window screen repairs couldn't be more straightforward. Each one takes as little as 20 minutes, and you’ll need to repair just five windscreens a day to generate a monthly turnover of £5,460. The minimum investment required is £15,000, which covers your training, ongoing marketing, sales, advertising support and all the administrative and managerial skills needed to make a success of your new unit.
Revive! Auto Innovations repairs damaged paintwork, scuffs, bumps, chips and unwanted marks on alloys. Established initially as a one-man business in 1994, the franchise now has around 70 franchisees.
Revive! differs from many other van-based repair franchises by granting each franchisee a territory that's designed to accommodate at least three vehicles. So, if you become a franchisee, you’ll be encouraged to expand to realise the full potential of your territory.
You'll need to raise an initial investment of £14,000 and a total investment of £32,000. The franchise is seeking ambitious individuals who have experience in sales, a natural affinity for ‘hands-on’ work and the desire to become the boss.
According to Visit Britain, a record 39.2 million tourists visited the UK in 2017, and this is only expected to increase. This means that the opportunity for car rental franchises is strong.
Sixt was established in Germany in 1912 by Martin Sixt and is still run by his family. The business has evolved a lot in the last 100 years, with now over 5,000 locations in more than 110 countries. This impressive growth has been supported by franchise opportunities, which have been made available since 1998.
As you would expect from a franchise of this size, the initial investment is significant at around £440,000. In return for this fee, you'll receive a world-class training and support package. You’ll get help to find the ideal size and mix of fleet vehicles, as well as all the coaching you need to run a successful franchise. Training sessions and workshops take place in both the UK and the high-tech training academy at the head office in Munich.
Unfortunately, Sixt isn’t looking to expand its UK franchise network with us at the moment. But keep checking back in case it re-opens the opportunity and you can register your interest.
Becky Martin, Point Franchise ©