Australia, same as USA, heavily depends on the automotive industry.
Large distances, personalised services and affordable living standards still make cars the most popular transport.
But there is more. The general industry continue to compete by lowering their profit margins and improving its service.
Mobile mechanics, tradesmen, on-site deliveries, couriers and taxis are primary reasons for the growth of automotive franchises. It is estimated that in Australia the automotive franchise produces an annual turnover in excess of $50 billion. Almost half a million Australians are employed by some kind of a car franchise. It is not surprising that the auto franchise has a strategic importance for the country.
Automotive franchises are not just retailers. The majority of the market share falls into services and car renting businesses. The similar trend is also noted in USA. The types of a typical automotive franchise are:
The survivability of any type of the auto franchise depends on the amount of second hand cars available on our roads. The exceptions are car wash and/or car detailing services which are popular among new car owners. The repairs and checkups for new cars are mainly dealt by the brand-sellers (due to the psychology of customers rather than the common sense). The car repair automotive franchises mainly service the older vehicles.
The automotive franchises dealing with the car wash and detailing services are generally simple to run businesses.
Partially, this is the reason why there so many businesses (not just franchises) in the category.
The hand-wash and detailing service does not require a substantial investment.
In fact, anyone can run this type of business.
The auto franchise offering self-serve cleaning stations is a different financial issue.
These automotive franchises have the capacity to provide self-detailing service or automatic car cleaning options.
The car washing business which run from the permanent structures costs between $250K-$400K. The mobile version of the car wash franchise sells for about $30K-$60K. Currently, Car Care Australia Pty Ltd, Rental Automotive Franchise, Superfinish and Nanotek are good quality, mobile car wash franchises. Quick N Easy Car Wash is a good option for the station-style car washing business. Quick N Easy Car Wash is particularly suitable for times, when green approach is rewarded by governments.
The auto franchises dealing with car renting are not overwhelmingly popular.
Mainly the hire of trucks, vans and utes have a larger interest among Australians.
This car franchise does require a substantial investment.
For starters you need between $400K to over million to run the car rental franchise. There are also substantial fees for the insurance. This kind of business is suitable for someone who have already worked in the field. Renting automotive franchises are not very competitive. However, there is a substantial risk involved. Europcar and Thrifty are examples of successful automotive franchises in the category.
There is a strong potential for automotive franchises which repair cars.
Anyone can wash cars or run a petrol station but only few are qualified to fix vehicles.
The auto franchises which offer the car repair service have a limited competition.
Even though there is abundance of car repair businesses the demand still outweighs the supply.
Most car repair franchisors are secretive about the price of their auto franchise. It can be estimated that $200K or more will be needed for the basic setup. Most franchisors will price their outlets according to the location. The initial investment for Midas ranges between $120K-$200K The Ultratune is more expensive but has a better marketing support. The car franchise, which uses the repair concept, is generally a good investment.
These are probably the most successful automotive franchises.
However, the success brings the popularity which lead to the increased supply.
Despite the numerous businesses offering car parts and accessories, the idea is still strong and profitable.
The Tire Factory, Bridgestone and Ozzy Tyres are all good investments. An initial investment between $200K-$400K is needed to purchase an average auto parts franchise. Most franchisors do provide the training and applicants are not requested to know the trade beforehand.