Automotive & Car Franchise Opportunities in the United States of America

collapse icon

Facts about automotive industry franchises

The US is one of the world’s largest car markets. Apart from the fact that the overall automotive industry contributes in the hundreds of billions of dollars to the economy, the share of automotive franchises is around $41 billion, which is lucrative, exciting, and highly motivational for prospective business owners who would like to become their own boss under a proven and profitable brand. 

However, the automotive franchise industry is not uniform. It contains numerous sub-divisions and niches that you should consider in order to align these with your passions and interests.

For example, the automotive franchising industry can be divided into some of the following categories and specializations:

  • Aftercare services, regular servicing, and auto repair (mechanical maintenance including servicing, replacing tires and parts such as brakes)
  • Aesthetic facilities (valeting, cleaning, and mobile car washing)
  • Car product retail or sales (a wide range of vehicles on offer for sale with a healthy 20% markup on second-hand trucks and cars)
  • Rental businesses
  • Auto detailing
  • Post-sale services (for existing car owners)
  • Mechanical repair (often as a result of vehicle collisions, oil and lube changes, etc.)

It’s also worth noting that as part of the car franchise industry defined by numerous sub-niches, current and prospective vehicle owners are opting to increase the duration of their vehicle ownership. In fact, the average duration of car ownership has increased by 60% in recent years. 

What’s more is that the average age of a car on the road in the US is a record high at approximately 12 years old. In addition to this, there is also a staggering amount of vehicles on American roads that are over 25 years old. 

All this combined offers prospective automotive franchise owners a lucrative opportunity to serve a market that is not expected to experience declines in the near future through multiple automotive franchise opportunities

Automotive and car industry franchise trends in 2023

The automotive franchise industry is relatively consistent despite numerous changes taking place in the industry. In particular, it is important to note that there are several trends that are driving the industry forward and will play a role in the near and long term future. Here are eight trends worth considering as you opt for a car franchise:

  • Interest in electric vehicles is on the rise: with changing consumer preferences, there’s a rising interest in and demand for electric vehicles (EVs). This is partially based on the fact that governments are calling for shifts away from internal combustion engines and partly because of growing environmental consciousness. With this in mind, automotive franchise dealerships should be prepared to cater to their clientele by expanding their EV offerings as well as offering guidance to consumers who are ready to make the switch.
  • Digital technology and more “connected” cars: digital technology is infiltrating the auto space as well with advanced infotainment systems, navigation tools, vehicle diagnostics, remote control features, etc. As such, it will be important for automotive franchises to be able to adapt to these changing needs and preferences as well as train and educate their staff accordingly to be able to address and better educate their customers.
  • Work on autonomous vehicles continues: as work on autonomous or self-driving vehicles continues, automotive franchise owners and their units will need to be able to cater to demand for these vehicles, be able to educate their staff and customers on these developments, as well as ensure that they have the right services and tools in place to ensure a flawless customer experience. 
  • Shared mobility is on the rise: it is predicted that shared mobility such as car-sharing and ride-hailing services can generate up to $1 trillion in consumer spending by 2023. This trend is spurred on by younger generations looking for eco-friendly options. Consequently, it will be necessary for automotive franchises to adapt to this trend and ensure that they offer car-sharing and ride-hailing services to their customers to meet rising demand. Offering flexible leasing options is another niche service worth considering, especially for customers who are hesitant to commit to traditional vehicle ownership. 
  • Partnerships between automakers and tech companies: car manufacturers and tech companies are increasingly teaming up to develop a variety of solutions to make driving a more seamless experience. Examples of this include connectivity, electrification, and autonomy. Such partnerships have a huge potential to shape the future of car ownership and vehicle sales and servicing and it’s worth it for auto franchises to adapt their sales strategies and product offerings.
  • Sales experiences are changing: because of the growing trend towards digital and online tools, automotive franchises need to cater to changing consumer needs. These involve the development and investment in virtual showrooms, online comparison tools, digital platforms, and digital marketing to ensure that they get the greatest levels of exposure.
  • The aftermarket accessories market is on the rise: vehicle buyers are increasingly seeking to personalize and enhance their vehicles. That’s why the aftermarket accessories market is on the rise. This can range from aspects such as performance upgrades to aesthetic modifications. And in turn, this offers car franchisors the opportunity to up-sell and cross-sell these accessories and services to create further revenue streams. 
  • Subscription plans are becoming more commonplace: such subscription plans tend to offer customers enhanced features and functionalities on-demand. Examples include heated seats and steering wheels, hands-free driver-assist systems, extra performance, etc. For automotive franchisors who are interested in taking advantage of this niche, they will need to provide clear expectations and be transparent about what’s on offer to manage expectations better and capitalize on these attractive and profitable opportunities.

Why you should consider automotive industry opportunities

When you are ready to explore your next automotive franchise opportunity, it is worth knowing what you are getting involved in. We have already alluded to the fact that automotive franchises are beautifully positioned in an industry that’s worth billions of dollars and that these franchise opportunities can be extremely lucrative. However, there are many other reasons why you should consider an automotive franchise for sale. Here are a few of them:

  • You’ll be your own boss
  • Invest in a well-known brand identity
  • Benefit from expertise and support from an experienced partner
  • Inherit logo and branding, with instant industry recognition and a trusted brand
  • World-class training for smooth operations and to adhere to the brand expectations every customer has
  • Most automotive business franchises offer HR assistance to help you navigate financial, employment, and safety regulations
  • Contrary to popular belief, with an automotive franchising business, you do not need mechanical skills yourself
  • If you have networking, delegation, and business management skills, you’re a strong contender already
  • The automotive industry in the US consists of around 284 million vehicles – that is an extensive market with numerous and consistent opportunities for profitability
  • The franchise business model operates in both good and bad markets meaning it is often recession-proof and profitable irrespective of seasonal trends
  • With your own car franchise for sale, customers pay when the service is completed, meaning there are no accounts-receivables that need to be managed and paid at a later date.

How much does it cost to open an automotive and car franchise?

The sheer options of automotive franchises available across the US is astounding, leaving you with lots of choices and options. On the financial front, you need to be prepared with your initial investment, which can range anywhere from around $50,000 to around $500,000. Although there are some car franchises that go as high as $7.2 million, most fall in the average region of around $200,000 to $500,000.

Read more arrow down icon Read less arrow up icon
Automotive & Car Franchise

Big O Tires

Renowned as “The Team You Trust,” Big O Tires takes pride in offering more than just tires.

Min. Investment


Automotive & Car Franchise

Fleet Clean

Fleet Clean specializes in delivering cutting-edge mobile truck washing services with a robust presence throughout the United States.

Min. Investment


Automotive & Car Franchise

Auto Appraisal Network

Auto Appraisal Network delivers a comprehensive range of services tailored to meet its clients’ diverse needs.

Min. Investment