Investing in an automotive franchise is an obvious move if you want to turn your love of cars into an exciting business opportunity. It’s a highly competitive market, but the startup process can become easier if you partner with an established brand with a trusted business model. First, you’ve got to decide which sector interests you the most. Studying the market, investment costs and the most profitable automotive franchises will also help your decision-making.

Table of Contents

1. Market Overview

2. Automotive Franchise Types

3. Automotive Franchise Opportunities and Costs

4. Other Factors to Consider

Market Overview

Multiple sectors of the automotive industry are showing signs of robust growth. For example, statistics suggest 296 million cars (including light trucks and SUVs) will be on US roads in 2024. Americans love their cars – and not just for essential journeys and fun road trips but also as a status symbol. Car lovers take pride in how their vehicles look.  As a result, auto detailing and car wash services are in big demand. The global car wash market is expected to grow 6.7% annually from 2023 to 2031, with total sales projected to reach $68.9 billion by 2031.

Elsewhere, research says the global auto repair industry will grow by $134.9 billion, with a 5.21% annual growth rate between 2023 and 2028. People are holding onto their cars for longer – and taking better care of them. Spending on repairs is often more affordable than buying a new vehicle.

The US car rental market is also growing steadily, valued at $35.26 billion in 2024 and expected to reach $51.12 billion by 2031. Key factors driving this growth include Millennials and Gen Z preferring rentals over owning cars, more business travel, and more people taking vacation road trips. The popularity and convenience of car rental services make it a promising career move if this line of work interests you.

Automotive Franchise Types

Automotive franchises cover a broad range of services and products in the auto industry. They generally fall into several categories, each serving a niche. Here’s a breakdown of the different types of auto franchise opportunities:

Car Wash Franchise and Auto Detailing

Car wash franchise opportunities are varied because there are different types of business, such as traditional automatic, touchless and mobile car washes. Services range from exterior washes to full-service detailing (interior and exterior). Investment costs vary greatly, too. For example, automatic car wash startup costs can run into millions. Whereas a mobile detailing business is more affordable.

These businesses often have monthly subscription plans, making it easier for you to attract and retain customers. Equally important, pay attention to trends. For example, research shows that eco-friendly awareness influences customer choice of car wash. You could tap into this lucrative green market and be onto a winner.

The hand car wash sector is also popular because people are often wary of potential damage to paintwork from automatic car washes. Therefore, they seek out services with a more personalized, gentle touch. Leading franchisors like DetailXPerts maximize profits by combining a hand car wash and professional auto detailing with eco-friendly steam cleaning.

Auto Repair and Maintenance

These franchises specialize in general vehicle repairs, routine maintenance, and diagnostics. Common services include oil changes, brake services, transmission repair, tire rotation, and more. In the US, there are many millions of vehicles on the road, all needing maintenance and repairs as they age. For example:

• Auto repair franchise opportunities tap into the trend of cost-conscious customers keeping their vehicles longer instead of buying a new one. Studies show Americans keep their cars for an average of 12.6 years.
• An auto Parts franchise specializes in selling car parts, tools, and accessories. As a franchisee, you can cater to both do-it-yourself (DIY) enthusiasts and professional mechanics.
• A transmission repair franchise taps into another growing market. This sector is part of a booming industry that generates billions yearly – the global auto repair industry will grow by $134.9 billion at a CAGR of 5.21% between 2023 and 2028.
• An auto glass repair franchise is another potentially lucrative business move. Reports say the global auto windshield market was valued at $2.78 billion in 2024 and could reach 4.44 billion by 2029, growing at a CAGR of 9.8%.
• Cars need preventative maintenance to keep them road-safe. This makes an oil change franchise a smart investment. Customers love the speed and convenience of a 10-minute oil change. You can also expand your service offerings, such as fluid checks and top-offs, tire rotation or even auto detailing. These extras can make a huge difference to your bottom line.

Paint Repair, Appearance and Protection Services

These franchises provide specialized services in vehicle customization, including paint jobs, vinyl wraps, window tinting, and adding custom accessories. For example, the US automotive protection films market was worth $374.1 million in 2023 and is expected to grow by 4% per year from 2024 to 2030. More people are using these films because they realize it helps preserve their vehicle’s look and resale value.

Car Dealership

A car dealership franchise is one to consider if your car sales pitch is perfect. The industry is picking up post-pandemic when there were new car shortages. The used car market size is also expected to increase over the next few years to 2029.

However, you need to make a sizeable investment if you want to run your own dealership. For example, the minimum investment amount required for a Chevrolet franchise is $500,000 (US dollars) in unencumbered funds. Chevrolet is part of the General Motors (GM) Group. Check out its dealership eligibility qualifications for more information.

Car Rental

Market research shows the car rental market is experiencing significant growth, so you could jump on this trend with a car rental franchise. Revenue in the car rental market worldwide is on target to reach US$102.50 billion in 2024. Moreover, in the US, car rental companies are tapping into the rise of ride-sharing services by offering flexible rental options.

The well-known franchise players in this field include the Avis Budget Group, which has globally recognized car rental brands Avis, Budget, and Budget Truck Rental. When looking at car rental franchises, narrow down your search to the ones with the most advanced technology because one of the trends in this sector is the rise of online booking platforms.

Other Factors to Consider

How do you know if an auto franchise is the best fit for you? Here are seven factors to consider in your decision-making process.

1. Shared Values and Goals

Every reputable business has core values or a mission. For the partnership to work well, you and the franchise brand should have similar goals and priorities to help each other succeed. For example, DetailXPerts values eco-friendliness, car wash innovation, water conservation, and award-winning customer service. Its mission is to provide superior car wash and commercial cleaning services while reducing environmental impact with steam cleaning.

2. Passion and Purpose

You don’t need prior experience to invest in car franchises, but a passion for cars will make your job easier and more enjoyable, whether you are selling or washing them. You need a learning mindset, too. Taking on a new business is an ongoing learning curve, and a successful franchise will support you with training from the start. For more options, see which industries are most likely to franchise.

Purpose also plays a big role in making your franchise investment a success. Having a clear purpose helps you stay focused, even in challenging times. For more on this subject, tune into DetailXPerts’ podcast More Details, Please on Your Passion Is Not Just a Pastime.

3. The ROI

As a potential business owner, evaluate your current financial situation and set clear future goals. This will help you choose the right car franchise for your budget. Car franchises vary in cost and potential profit—for example, automatic car washes require a higher investment than mobile car detailing franchises.

However, high investment doesn’t always mean higher returns. Make sure your investment won’t strain your finances, and remember, it can take a year or more to see a return on investment (ROI). Some of the most profitable automotive franchises do well when no real estate at a fixed location is involved. For example, a mobile auto detailing business has lower overhead costs and the potential to make you a lot of money.

4. Location

Choose a location in a high-traffic area. Hard-to-find businesses often struggle because they miss out on impulse customers passing by. For example, setting up a car wash near gas stations and shopping areas is a smart way to promote your service and attract more customers. This approach can also help reduce your marketing costs. But if finding a suitable location is problematic or too expensive, it doesn’t mean the end of your franchise dream. Explore other options, such as a work from home franchise.

5. Space Requirements

Another factor to consider is the size of the space available for this business. An automatic car wash could work if there is a large lot. However, if space is limited or unavailable altogether, look into mobile detailing options.

6. Opening Car Franchises

Grand openings create a positive first impression and help attract attention to your business. To pull in customers, create a buzz on social media by offering promotions, free services, or discounts. Timing is everything, too. For example, a mid-winter car wash opening in Chicago may not be the warmest way to launch your business.

7. Community Business

Research what your local community needs and wants. This will help shape your decision-making when partnering with a franchise. For instance, if self-service car washes are already on the street, you have competition. However, if there isn’t an auto detailing shop in the town, this might go down well with the locals.  Alternatively, looking into a water-saving, eco-friendly franchise is a smart move if you live in a drought-hit area.

Automotive Franchise Opportunities and Cost

The big brands looking for hard-working, ambitious entrepreneurs who want to build a successful business. Here are some of the most profitable automotive franchises. Your choices range from car washing to auto repair.

Car Wash and Auto Detailing Franchises

• DetailXPerts franchise opportunities can be run as a mobile business, making it one of the more affordable options in the automotive industry. You don’t have to invest millions in a brick-and-mortar location fitted with expensive automated car wash equipment. Instead, use a fully equipped van to run your mobile auto detailing or commercial cleaning business. Investment costs range from $103,500 to $240,100.
• Tommy’s Express is all about the automatic car wash. If you like the idea of offering customers the express car wash experience, request more info from the franchisor. The initial investment is $4.9 million to $9.3 million.
• Fleet Clean USA is a mobile truck wash. The target market includes owners or drivers of 18 wheelers, tractors, trailers, and delivery trucks. There is no need for a fixed location, so it reduces your startup costs. The initial investment is $164,000 to $720,000.
• Spiffy provides mobile car care and maintenance services, including oil changes and tire replacement. The initial investment is $100,000 to $200,000.
• No-H20 is a waterless car wash. You use specialized cleansing lotions to break down dirt and grime and then remove the residue with a microfiber cloth. The initial investment is $134,550 to $162,500.
• Green Shine also offers waterless mobile car care. There is no storefront required, so you can keep overhead costs low. The initial investment is $48,000 to $160,000.
• Mr Clean Carwash specializes in car wash services, oil changes and other maintenance services. The initial investment cost is $2.4 million to $3.3 million.

Auto Repair and Maintenance Franchise

• Matco Tools is a mobile tools franchise. It supplies professional mechanics with tools and equipment for repair work. Start-up costs for a mobile franchise are much lower since you won’t need to purchase or rent storage space. The initial investment is $110,000 to $340,000.
• Advanced Maintenance is a truck repair franchise opportunity. You don’t need experience in the trucking industry, but some business experience helps maximize this opportunity. The initial investment is $132,000 to $185,000.
• Precision Tune Auto Care has been in the auto repair business for more than 45 years. If you buy an existing center, there’s in-house financing for qualified candidates. The initial investment is $134,000 to $310,000.
• Car Star specializes in auto collision repair. If you already own your collision center, you could partner with this brand and upgrade and grow your business. initial investment is $298,000 to $804,000.
• Fibernew franchisees restore leather, plastic and vinyl parts found in different vehicles (cars, boats, airplanes) and equipment (in homes, hospitals, hotels etc). The initial investment cost is $100,000 to $120,000.
• RNR is a one-stop shop for everything to do with tires and wheels – you name it: alignment, brake caliper painting, flat tire repair etc. The initial investment cost is $704,000 to $1,69,000.

Transmission repair is a niche within the auto repair sector. Moreover, there’s ongoing demand for this service because Many people are holding onto their cars longer, and transmission problems are more common in older cars. Here are some franchises:

• Eagle Transmission is looking for car repair enthusiasts to join the team as it expands across the States. The initial investment is $229,000 to $493,000.
• AAMCO Transmission and Total Car Care services thousands of cars annually and provides comprehensive training programs to support your startup journey. Moreover, this is one of the absentee owner franchises. The initial investment is $236,000 to $361,200.
• Mighty Auto Parts is another big name in preventative maintenance, including transmission care and repair. The initial investment is $240,500 to $517,600.
• Cottman Transmission and Total Auto Care specializes in transmission repair services, but you can expand your service offerings with general auto repairs. The initial investment is $192,000 to $231,000.
• Mister Transmission is looking for franchisees looking for available markets in Canada. The initial investment is from $128,000.

Auto Parts Franchises

• Advance Auto Parts franchise acquired Carquest auto parts franchise in 2014. One option is to convert your existing auto parts store when you partner with them. The minimum initial investment is $500,000.
• Parts City is a subsidiary of O’Reilly Auto Parts. O’Reilly’s vast inventory and quick delivery systems are a hit with customers. The investment is around $500,000.
• Mighty Auto Parts is another big name in the business. The initial investment is $248,000 to $596,000. Mighty is a member of the International Franchise Association’s VetFran Program, offering franchise opportunities for veterans.
• Pop-A-Lock is a successful car locksmithing franchise. You can also target the residential and commercial locksmith market to boost profits. The initial investment cost is $138,000 to $171,000.

Auto Glass Repair Franchises

• Novus Glass provides high-quality auto glass repair and replacement services. The initial investment is $57,000 to $216,000.
• Glass Doctor is part of the Neighborly Group, which franchises different home services brands. The initial investment is $162,000 to $317,000.
• Ziebart has nearly 100 locations in the US and is looking for new franchisees. The initial investment is $417,000 to $566,000.
• USA Mobile Glass Repair includes a windshield replacement franchise option. The initial investment is $38,000 to $91,000.

Paint Repair, Appearance and Protection Services Franchises

• Colors on Parade offers mobile paint repair services. The initial investment is $21,000 to $98,000.
• Maaco is also part of the thriving automotive aftercare market. It has 5 decades of expertise as a high-performing body shop to help you build an in-demand business. The initial investment cost is $172,500 to $605,500.
• LINE-X is a one-stop customization shop specializing in hard-wearing protective coatings. The initial investment cost is $271,000 to $1,013,200.
• Ziebart also specializes in appearance and protection services with 400 worldwide licensed locations. The initial investment cost is $416,820 to $566,100.

Car Rental Franchises

• Dollar requires a net worth of $500,000 or higher and liquid assets of $150,000 or higher, depending on the location. You can also explore international franchising in the car rental sector, where there is global demand for services.
• Thrifty Car Rental franchise also requires a net worth of $500,000 or higher and liquid assets of $150,000 or higher, depending on the location. The approval process and finalizing the legal documentation take around 60 to 120 days.
• U-Save car and truck rental franchise is looking for ambitious partners who want a standalone business or are looking to add it to an existing auto-related business. It is one of the smaller brand names, with about 200 locations around the world. However, the company has more than 30 years of experience in the car rental sector. The initial investment is around $685,500.

Car Dealership Franchises

• Motors Holding offers an opportunity to help you become an independent General Motors (GM) dealer. GM brands include Chevrolet and Cadillac. See candidate qualifications to see if this is a good fit for you. The initial investment can be between $3 million and $10 million, depending on the location, brand and size of the dealership.
• Byrider offers used car dealership franchise opportunities. Since your franchise could manage up to $10 million in automotive receivables, new franchisees may need up to $1 million in capital. If you can’t get your hands on this kind of money, take a look at some of the low cost franchise opportunities.
• Hyundai is not like a traditional franchise like a water damage restoration franchise. Instead, it operates through a dealership model, which is common in the automotive industry. Hyundai’s business model would grant your dealerships the right to sell and service its vehicles under specific guidelines and agreements.

Conclusion

To sum up, there is no shortage of automotive franchise opportunities. Moreover, you can choose a business that aligns with your passion and skillset. If you take pride in vehicle appearance, car washes and auto detailing is a lucrative sector. Alternatively, you can explore the repairs or auto parts sector, where there is ongoing demand. Car rental businesses and dealerships are also showing strong signs of growth.

If you want to reduce costs, look into mobile businesses where you take your services to the customers. Never underestimate the demand for convenience for time-poor people. Not having to spend on real estate can make a huge difference to your startup investment. Finally, pay close attention to trends in the automotive industry. For instance, environmental concerns and consumer demand for sustainability are shaping the market.

Download our Business Model Overview to learn about franchising opportunities in the automotive industry, including fleet maintenance services and a mobile car wash.