With the newer cars launching rapidly in the world, the automobile industry has gained more popularity than ever. It is undoubtedly up swinging due to the surge of technology in 2021.
That’s why a big opportunity has opened up for people to invest in car-related businesses. Many startups and small businesses who invested in the automotive industry are now getting 3x higher profits. And until people need vehicles to travel and commute, car care businesses will continue to grow overall.
There’s another reason for the upshift in the automobile industry: the rise of civilization. With all the local transport being seized during COVID, people bought more personal vehicles, and it added to the business openings for business-minded people. At this age, you cannot even think of spending a day without riding any two-wheeled, three-wheeled, or four-wheeled vehicles for carrying on with your daily activities.
When talking about the profit margins and investments needed to enter this booming industry, here’s to mention that the automobile industry is highly profitable of all, especially when you are tight on your budget.
The only thing you need to identify is your interest, the right business plan, and the perfect field for investing your money. Without further ado, let us talk about the top 5 most profitable automobile business ideas for you.
#1 Car Wash Business
Stepping into a car wash business brings a lot to the table. You can either get a place for rent or can provide mobile car wash services. It is proven to be a smart way to make a lot of money without taking much risk of capital investment.
Choosing to go with the onsite services also eliminates the cost and expenses of a location, utility bills, and taxes. With everyone around us, having a car means that their vehicles need continuous cleaning. You can get more out of a mobile car wash business by roaming in those locations/areas where gas stations are far.
From observations and surveys, it is seen that, on average, a car owner gets their car washed once in two weeks. It depends on the regions as well. Like, if you move to coastal areas, you need to wash your car more frequently to keep it from corrosion and rust due to salt. Additionally, due to the increase in pollution and dirt rate of the environment, professional car washing is becoming a necessity for all car owners.
Hence, the car wash business is a big win-win to start in a few weeks. Get the setup done, reach people from door to door, and provide comfortable home service.
#2 Auto Repair Business
Here comes a big giant that never fails. An auto repair business is the best for you if you know the car repairs' technicalities and mechanisms. However, it is not a must to understand every car brand and model. You can provide repair services solely for a few brands or your chosen vehicles. You can also repair only some popular problems, have a specialty, or be an all-in-one type of shop.
Starting an auto repair shop gives you a path of growth in the automotive industry. Why?
Brakes need continuous updates, tire changes are a must after some time, and any car running on the road will need a service or repair at one point or another. Thus, making your business essential.
As mentioned earlier, the COVID times have made personal vehicles a must-have. So, now is the most strategic time to make this smart move. Take advantage of the pandemic and get the ball rolling due to the high-profit gains experienced in the car-repair industry.
If you are concerned about the money required, so don’t worry. Starting an auto repair business doesn’t require much capital. You should have the basic knowledge of auto repair, nice and handy technical skill, a few essential appliances for repair, and good auto repair shop software to take care of all the records and expenses of your business. That’s it!
#3 Automobile Spare Parts / Accessories Store
If you are interested in the junkyard or more concerned about the cars' trendy accessories, this business is the perfect choice for you.
The idea of a car accessories or spare parts store is also one of the most profitable automobile businesses. Now and then, parts need replacement. So, if you start a spare parts business, you’ll not be disappointed with your decision.
Having a car parts business never gets old-fashioned or falls below the margin of earning a nice profit. To stand out among other spare parts shops, here’s our advice.
Consider offering some new modifying parts for people who come in for basic replacements. These recommendations can be jumper cables, dash cams, door speakers, seat covers, car phone chargers, phone holders, component speakers, and many more.
Pro-Tip: With a low budget, you can start your accessories shop focusing on a small number of products in the initial stage.
#4 Mobile Oil Changes
Another idea for a quick setup is going for the oil changes. You can set it up as your side business too. It calls for some quick automobile services at client’s sites who don’t want to show up at a service station.
Being a $7 billion industry, the automobile oil change services allow you earn a handsome amount of profit in less time. Moreover, by providing convenience that’s unparalleled in the industry, you can get a solid foothold in the market.
#5 Used Car Dealership
Used car dealerships are sometimes tricky because it depends on the owner and his fairness in the deals. If you plan to start a car dealership business, it is better for you if you have a strong PR and good at providing outclass customer service.
Talking about the opportunities, the used automobile market is growing worldwide. In the total lifespan of a vehicle, it is sold 3 to 4 times. These stats create a huge market for the used car dealer. Start a car dealership by owning a retail location with used vehicles. However, compared to the auto industry's other business ideas, this idea is costly, demands big capital investment, and requires to know the depreciation assessment.
Other Successful Ideas
• Start a taxi cab company
• Start a food truck
• Start an aftermarket car parts business
• Start a courier service business
• Start a delivery service
• Start a limo service
• Start a bus shuttle service for airport, schools, or campuses
• Start a car rental business
• Start a car tracker installation business
• Start an auto insurance company
• Start a headlight restoration business
• Start an auto locksmith business
• Start a vehicle licensing brokerage service
The Bottom Line
Whatever you do, requires dedication, reliable services, and good customer experience. If your customers are impressed, it will make it easier for your business name to spread through word of mouth. Good luck, and welcome to the automobile business!
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