If you know your brake pads from your turbochargers, investing in a car parts franchise opens doors in the competitive automotive market. Franchises with a proven business model ensure you hit the ground running selling vehicle parts and accessories. Investment levels vary, so it’s important to compare initial startup costs. As with all automotive franchises, assess the franchise’s fit with your goals and budget.

Overview of the Market

The auto parts industry is huge, so breaking it down into segments makes it easier to navigate. For example, you have original equipment manufacturer (OEM) parts made by the vehicle’s original manufacturer. Then, you have aftermarket auto parts made by third-party companies (not the OEM).

You’ll find many auto parts franchise opportunities within the aftermarket parts sector. For instance, brands like Advance Auto Parts or Mighty Auto Parts sell directly to consumers, repair shops, and businesses. And there is demand for hundreds of products. To illustrate, the range includes brake pads (replacement parts), suspension kits, fancy wheels (performance parts), and floor mats (accessories).

Market reports look optimistic. The global automotive aftermarket size could reach $619.6 billion by 2033, growing 4.1% annually from 2024 to 2033.

However, if you fancy owning an auto repair franchise instead, you’ll probably use OEM and aftermarket parts. Entering the auto body repair and collision services sector is another way to build a thriving business. Overall, the automotive industry has lots to offer. Other opportunities include:

• Car wash opportunities
• Auto glass repair franchise
• Car dealership franchise
• Car rental franchise
• Transmission repair franchise

Independent Business Versus Car Parts Franchise

If you see yourself selling auto parts, you must decide whether the franchise business model suits you. Or you can set up an independent business. Here are the pros and cons of both options:

Independent Business

• You get to keep a larger share of your profits since you aren’t paying franchise fees or royalties. All your revenue goes directly to your business minus your operating costs.
• Choose your inventory based on what your customers want rather than following corporate guidelines.
• You can work with multiple suppliers, which allows you to negotiate better deals and offer a wider variety of products. I.e., you’re not locked into the purchasing agreements that franchises might have.
• While it is exciting to go it alone, larger auto parts chains like AutoZone and O’Reilly have strong supplier relationships and economies of scale. I.e., they can buy in bulk at lower prices. As an independent business, you might find it hard to negotiate similar deals, which means higher prices for your customers.
• Online auto parts retailers can offer lower prices and a broader selection, making it challenging for you if you own a small, local store. Customers often prioritize convenience and price over local service.

Auto Parts Franchise

• Professional help with real estate selection, store design, and operational guidance.
• Make the most of the franchisor’s marketing support and comprehensive training.
• Backing of a well-known brand in the competitive automotive industry. Franchises like NAPA Auto Parts attract customers who trust established names. In contrast, building a loyal customer base takes time when starting a business from scratch.
• Franchises come with a proven business model and operational guidelines, which can reduce the risk of business failure.
• If you pay ongoing royalties based on a percentage of your sales, these fees can impact your profit margins.
• You must stick to the franchisor’s branding and advertising plans, which means you can’t move away from the established brand image without approval from the head office.
• Auto parts franchise agreements are often set up for active, hands-on ownership. So it might not suit you if you want to explore absentee owner franchises.

Whatever option you choose, starting an auto parts business requires a considerable chunk of money to secure a location, buy inventory, and set up your store. Furthermore, auto parts can be expensive. Therefore, maintaining a well-stocked inventory means spending more money. If budget is a concern, investigate low cost franchise opportunities.

Other Factors to Consider

Running an auto parts business is hard work and a significant investment. Other factors to bear in mind include:

• Check if the franchise offers exclusive territory rights or if multiple franchises exist in the same area, which could lead to internal competition.
• Explore funding options, including loans, investors, or personal savings, to ensure you’re financially ready for this business venture.
• Find out the demand for auto parts in your target area. For example, can you sell to local car garages, car rental places, fleet businesses or auto repair shops?
• Research different franchise opportunities to ensure nothing else grabs your attention before you commit to an auto parts business.

Auto Parts Franchise Opportunities and Franchise Cost

We can point you in the right direction if you want to find the best auto parts franchise. They offer a strong brand name, comprehensive training, and ongoing support. Here are brands looking for ambitious franchisees:

• NAPA (National Automotive Parts Association) is a leading US auto parts brand. Store owner feedback says running this type of business requires hard work, dedication, and a deep understanding of your target market. Note that it isn’t a Napa auto parts franchise. Instead, if you’re an independent owner wanting to open a NAPA store, you need a minimum of $75,000 to $150,000.
• Parts City is a subsidiary of O’Reilly Auto Parts, which began as a single store in 1957, and now has over 6,000 stores, including 48 US states. O’Reilly’s vast inventory and quick delivery systems ensure you can efficiently meet customer demands. The investment can vary widely depending on location and size, but budget for $500,000.
• Mighty Auto Parts has been around since 1963. It has over 90 franchises in 40 US states. It has international franchising options, too. 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.
• Bumper to Bumper auto parts franchise is part of the Aftermarket Auto Parts Alliance, Inc., one of the largest auto parts programs groups in the world. Partnering with this brand is an affiliate program rather than a traditional franchise. But you’ll still benefit from the company’s support system, marketing, and access to exclusive auto parts and brands.
• People talk about a Federated Auto Parts However, like Bumper to Bumper, it is an affiliate program. The Federated Car Care Center Program welcomes you into the company’s network, where you can benefit from brand recognition and resources while maintaining independent business ownership.
• Advance Auto Parts franchise acquired Carquest auto parts franchise in 2014. Carquest ownership opportunities include converting your existing auto parts store, acquiring an existing one, or buying a new store. Joining Advance Auto Parts larger network means you can tap into its vast inventory and resources. The minimum initial investment is $500,000.

If you prefer to go with a franchise rather than an affiliate program, see which industries are most likely to franchise outside of the automotive sector. This includes work from home franchise options.

Boost Profits With Additional Services

If you want to maximize your auto franchise opportunities, think of additional services. For instance:

• Think like an oil change franchise and provide a quick service topping up essential fluids like oil, transmission fluid, and coolant.
• Create a loyalty program where customers earn points or rewards. Offering discounts or exclusive offers can increase repeat business.
• Provide performance tuning services for car enthusiasts who want to optimize their vehicle’s performance with upgraded parts such as engine modifications.
• Offer auto detailing services.

Conclusion

To sum up, investing in a car parts franchise introduces you to the booming automotive industry. However, it is a big commitment that demands a lot of hard work. Also, you must factor leasing or buying real estate into your budget. Realistically, you’re looking at spending around $500,000 to join one of the big-name franchises.

However, if you already own an independent auto parts shop, look out for affiliate programs offered by brands like Federated Auto Parts. This allows you to join a larger network where you operate under a brand name to attract more customers.

But you don’t need to invest heavily in an auto shop to break into the automotive business. For example, you can start a mobile car wash when you partner with DetailXPerts. Our eco-friendly business model takes the car wash to the customer, using water-saving steam cleaning technology for a greener clean. Or explore our commercial cleaning options using the same water-saving equipment to clean and sanitize buildings and spaces.

Download our guide on How Much Does It Cost to Start a Mobile Car Wash to discover other ways to open a lucrative automotive business with franchise support.