Business Advice Needed - Future of Automotive Repair

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[EastCobbRules]

I have the opportunity to purchase a profitable transmission repair franchise (the franchisor is the leader in that industry) It also does some general automotive repair work.

Right now, it's a good investment. My question, what is the future of automotive repair and related businesses?

Another way to phrase it: How viable is entering this type business in the current climate and with the automobile industry in a state of flux?

I'm primarily concerned about what the new technologies (hybrids, etc) will do to this industry. And what happens when gas shoots to 7 bucks a gallon (or whatever) when we confront Iran.

I have a lot riding on this (mainly 4 kids!) so I would be forever grateful for any advice.

Thanks a million!

[RightWhale]

What kind of vehicles? Heavy construction equipment, Cat, and trucks will always need heavy mechanics even if all small vehicles go electric and become disposable in case of any breakdown in the mechanicals.

[spokeshave]

Not sure about the "general auto repairs"....best is to FOCUS...Focus and focus on the main issue, i.e. transmission repairs....so you keep a core of skilled workers and have all the appropriate test equipment and repair kits.....And can guarantee a 24 hour turn around in 80% of cases. Leave the "general auto repairs" to others and shade tree mechanics.

It will be some time before 48 volt electrics are in use.

[Draco]

In addition to what the two earlier posters note, I would look at the availablity of corporate auto care contracts. Regardless of the economy or gas prices, corporate fleets (smaller ones too)need regular maintenance and repair. From the auto shops I know (I am not in the business) this seems a good bread and butter, reliable sector of the business.

[Cagey]

profitable transmission repair franchise

Well, if you're certain it's profitable today you should be okay for at least the short term.

If it were general repairs, I wouldn't be so optimistic because OE dealers are in an advantageous position in that area. But, if your business is going to specialize in transmission repair I think you are going to do well if you can keep total control of the business.

Transportation is here to stay for the foreseeable future and I think it's going to be a strong market. Join an association that specializes in your industry and keep abreast of market changes and always stay on top of the latest technology.

Best of luck and much success!

[Khurkris]

IMO, a franchise repair shop pulls customer for 2 reasons - Name and Guarantee's.
After that, they get the meat of their business - repeat customers and word of mouth business - by quality of work.

Autos are going to be in the culture for a long time and they will always need repair. If your shop has the right equipment and technicians who have the knowledge and guidance to do a good job, you will be successful.
Consistently keeping in-tune (an intentional pun) with the changing technologies is a necessity. I also think that one of the hardest things is to maintain good, knowledgeable technicians who will show up for work.

The backing of a good franchise can help with a lot of these issues, but it will come down to the example you set. Much god luck to you!

[EastCobbRules]

Thank you all for your great wisdom and sound advice!

I sincerely don't know what I would do without the friends at Freerepublic.

[i.l.e.]

The big issue is car technology. Keeping up with technology can be expensive. What type of requirements does the Franchise have for upgrades for new car technology. Computerization, hybrids, new engine designs, foreign cars vs detroit vs made in America. Check out the issues with other franchise owners out of state and in big cities before making any financial decisions.

[eleni121]

You may have already seen this below but I forward it to you anyway. called "the future of automotive repair" --- looks informative...Good luck in your new business!

http://www.univaftmkt.org/pdfs/GenXY.pdf