Cars. They are more than just a means of transport. Now, they are considered to be a status symbol.
So much so that, despite the recent tumultuous economic conditions of the world, the automobile sector continued to thrive.
The rising demand for both new and used cars showcases the inclination of the masses towards the product.
This might explain why, as per Statista, car sales reached a whopping 4.7 million in the US! Additionally, global revenue reached 4 trillion dollars in 2019. This is great news for small business owners.
According to the Small Business Association, only 30% of new businesses fail during the first two years of being open.
Here Are Some Profitable Automobile Business Ideas
If you are thinking of starting your venture within the sector of automobiles, there are various business ideas you can explore. Here are the most profitable automobile business ideas that will help you in retaining a maximum profit.
1. Online Car Selling And Buying
Starting a business where you buy and sell cars online is bound to be profitable in today’s landscape. After all, the masses prefer online solutions in all facets of their lives.
According to Our World in Data, there are over 4 billion active internet users. According to a study conducted by Kinsta, 67 percent of Millennials and 56 percent of Gen Xers prefer online shopping!
This is also the reason why the E-commerce sector is growing at a rapid pace.
Now, you can merge Ecommerce with the automobile industry. Deliver a solution whereby you act as a bridge between car buyers and sellers. Facilitate the transfer of ownership as well as payment between the parties.
Just like eCommerce giants, you will also make it big within the auto sector!
2. Car Wash Business
One thing that people are bound to require regularly is a car wash service. Therefore the best thing about the automobile sector is that it doesn’t just hold a significant demand itself. Instead, its related services are also highly demanded due to their association with the product.
As more and more people buy new and used cars, more car wash services are required to manage their needs. Moreover, considering the rapid rate of air pollution in most cities in the world, a car wash business is bound to be profitable.
Conduct research to find the optimum place to launch your car washing business. Ideally, you should opt for a location that doesn’t have a car wash service nearby. This will help you in attracting all neighboring homeowners.
You can also incorporate the power of online business into this equation. You can do so by creating an app that makes it easy for people to book a car wash appointment. Another better way you can target customers is by starting an online car wash where you provide door-to-door service to deliver convenience.
3. Automobile Tire Store
Another profitable venture when it comes to the automobile sector is a tire store. These, too, have just as much derived demand as a vehicle, if not more.
According to Kelly Blue Book, on an average, a car needs tire replacement after every 25000 miles it covers.
There are six categories of tires you should know about. This includes car passenger tire, two-wheeler tire, three-wheeler tire, heavy and medium commercial vehicle tire, and light commercial vehicle tire. You can stock inventory depending on whether you want to start a specific type of tire shop or a broad-category business.
The best way to decide is by conducting market research. See the type of demand your local market has and begin by first only stocking highly demanded tires. This will ensure a steady generation of revenue, which will make your investment secure.
You can then use the money to stock other types of tires. However, it is advised that you don’t expand your inventory until your business starts making profits.
4. Driving School
Driving institutes are quite a profitable subsector of the auto industry. According to IBIS World, driving schools in the US alone accounted for 1 billion dollars’ worth of revenue. There are currently over 20,000 businesses operating in the country.
While the competition might be high, the steady demand for driving schools is likely to guarantee that you will get customers. After all, every year, a new set of the population turns legally old enough to drive. The next instinct, once you do, is to learn how to drive and get the license.
By starting a driving school, you can help new drivers in both the written comprehensive test as well as teach them the technicalities of driving. With enough effort in marketing, you are bound to attract customers.
5. Automobile Magazines
Do you have a flair for writing? Or maybe you are a car enthusiast. If you are both, the best automobile business idea for you is to launch an automobile magazine.
You can write reviews about different cars, launches of new models as well as add advertisements from automobile sponsors you get. Car magazines have loyal niche followers. Once you showcase your credibility and deliver engaging content, you will begin attracting this niche.
To put things into perspective, here is the reach of different magazines in the US as per Statista. The top magazine of the US, called Car and Driver, has almost 20 million customers.
6. Car Accessories Store
A car is made up of a variety of parts and accessories. Sadly, for a car owner, each of these parts may require eventual replacement and repair.
You can begin an online car accessory store where you stock and sell the various parts of a vehicle. This can include jumper cables, door speakers, dash cams, seats, tweeter, component speakers, etc. Just like a car tire shop, here too, it is advised that you begin by first selling a limited number of products.
Once your business gains momentum, you can gradually increase the quantity and diversity of your product portfolio.
Take full advantage of the growth of the auto sector. Start a business within the realm of an automobile, and you are bound to make maximum profits.