Automotive Franchise UK
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Automotive Franchise UK – the TOP 10 MUST KNOWS about finding and running  successful UK Automotive Franchises.

Car and automotive franchises UK have thrived upon a solid foundation of a franchising-ready template for decades. Should you, however, buy a car and automotive franchise UK in the present economy?

 
There are few franchise sectors out there that can rival the robustness and straightforward revenue models adopted by the car and automotive franchises UK. For years, would-be franchisees have preferred buying an automotive franchise UK over other top contenders like retail and food franchises, simply for the reason that it’s much easier to translate the demand into sales for automotive franchises.

At face value, this might look like a twisted pattern, but it really isn’t when you dig a little deeper and analyse the numbers in this regard.

All things said and done, buying a car and automotive franchises UK means you invest in an opportunity that targets the widest and largest chunk of the overall adult consumer demographic. On top of that, most car franchises UK provide services that are of the ‘necessity’ nature, and not the ‘luxury’ nature.

A combination of these factors means that UK automotive franchises have a head start over most other franchise sectors. The question, however, remains – should you really buy a car and automotive franchises UK, especially in the present state of the economy?

Let’s try to figure these things out.

Why Car And Automotive Franchises UK Have Been Successful

There’s little need to go wandering looking for answers when the answer has been staring us in the face all along.

  • In terms of car ownership, the UK is one of the leading countries not just in Europe – but in the world.
  • On average, in the last five years, 3-3.5 million new cars are licenced in the UK each year.
  • Close to 40 million cars are presently licenced.
  • The number of UK households that own at least one car has been on the rise throughout the last decade.
  • At the same time, the number of UK households that own 2 or more cars has also been steadily rising.
  • There was a brief slump in 2017 in the number of new cars licenced in the UK – but that seems to be nothing more than an aberration, when looked at from a wider perspective.
  • The latest trends in car manufacturing and buying look all set to revolutionise the automotive industry around the world, and the UK is no exception. The number of new ultra-low emission cars being licenced shows clear signs of disruption.

Sources: Statista 1, Statista 2, The Office For National Statistics

The only reason for us to furnish these stats is to paint a clear picture of the immense diversity and room that still exists in the auto sector for even a new car and automotive franchise UK to make their mark. Of course, the size of the industry – on its own – isn’t of much significance until we assess the nature of the demand. We’ll come back to that point when we discuss the types of UK car and automotive franchises.

Are Automotive And Car Franchises UK Following A Dated Business Model?

If you’re looking to invest in a car franchise UK, this is an extremely interesting point to follow.

In the business statistics we looked at in the earlier point, we – quite on purpose – decided to withhold an important bit – the urban youth’s waning desires to ‘own’ cars.

It’s a phenomenon that’s native to almost every developed economy in the world – the millennials just aren’t as interested in buying new cars as their counterparts in previous generations were.

Here’s an interesting perspective (borrowed from the Financial Times): the car service industry (in which every car and automotive franchise UK falls) needs to revamp their offerings to match the ‘green’ and ‘clean’ requirements of the new generation(s).

In that sense, it would be safe to say that UK automotive franchises are a touch behind the curve. From a totally different point of view, this also means that we expect there to arise quite a few interesting sub-niches for car franchise UK owners to explore.

Recommended: Here’s Why B2B Franchises Have Been Doing So Great In The UK.

What Does A Typical Car And Automotive Franchise UK Do?

Almost every car franchise UK can be treated as a service provider of some sort – with many doubling up as product selling businesses.

The focus, for such franchises, is always on attracting, acquiring and closing their choice of demographic in close tandem with the franchisor’s expertise – a proven template for many franchise operations across industries and sectors.

This point becomes much clearer when consider the types of car franchises UK.

Types of UK Car Franchises

While it’s not possible to list all the types here, here are the most popular ones:

Car Dealership Franchises UK

A car dealership franchise is probably the best representation of how and why UK car franchises have been performing so predictably (a good thing).

Car dealership franchises are closer to other ‘commission’ based franchise sectors like estate agency franchises than product based franchises. While these usually come with a steep price tag, it’s easy to see why franchisees are willing to put money into car dealerships. By running a car dealership franchise unit, a franchisee can ride the brand value of the cars that are on sale AND the franchisor business – a great deal!

Moreover, buying and selling used cars generally guarantees a steady stream of revenue for most car dealers.

Car Rental And Leasing Franchises

The car rental industry in the UK is well-established and fairly deep-rooted (with annual revenues exceeding £700mn for 2018).

From the car and automotive franchise UK perspective, this sector can be divided into two broad categories:

  1. Consumer Facing Car Rentals

Thanks to many popular start-ups and ride sharing apps, the consumer-facing, retail car rental sector has been rendered extremely difficult for franchises to breach. As a franchisee looking to invest in a car franchise UK, you’re likely to find no more than a handful opportunities in the retail rental sector.

  1. B2B Car Leasing

This, on the other hand, is a great prospect in terms of franchising. The B2B car leasing market isn’t likely to be disrupted anytime soon. Local businesses prefer to lease cars from other local businesses that can give them a fair deal – something a car leasing franchise UK can certainly capitalise on.

Garage And Car Repair Franchises

Garage and car repair franchises are extremely popular at local levels because, for a modest investment, they guarantee a revenue stream that can be easily secured at the consumer end. In addition, if the franchisor business has exclusive repair authorisations to popular car makes, you can hope to build your franchise unit up to a handsome level of profitability quickly.

Most franchisors, however, require their franchisees to have at least some prior experience in running/operating car repair businesses. If you’re confused about where to begin your franchising journey, here’s how to know if franchising is for you or not.

Recommended: Don’t Know How To Raise Money For Your Franchise Business? We Have You Covered.

Car Wash Franchises

If there’s one thing car wash franchises UK have built their rise on, it’s the clearly defined service model. Car wash businesses – even though they sell ancillary products – are predominantly service providers, nothing more and definitely nothing less.

As a carwash franchise UK, you’ll most likely be competing against local car wash businesses that you (hopefully) have an edge over in terms of marketing, brand value and expertise.

Running a car wash franchise UK also means that you need to carefully consider and follow the local council rules regarding the use and disposal of water and chemicals – a huge costing factor in urban areas.

Product Based Car Franchises

Unlike other service based car franchises UK, product based franchises operate like any other retail franchise would. The profit margins are defined exclusively by the products, not the expertise. What this also means is that there’s very little room for the franchisee to grow the franchise unless they can trust their franchisor to bring on board excellent products (bespoke or licenced).

The most common variety of such franchises are tyre dealerships – a combination of product and service based business models. All the biggest tyre companies have exclusive territories already assigned to distributors and retailers. So, working with a franchisor who holds these rights becomes the key.

How Much Does A Car Franchise UK Cost?

A typical car and automotive franchise UK can be bought for a combination of fees – the one-off franchise fee and additional investments for marketing, inventory, location, territory rights and know-how (training and support).

A quick look at some of the most popular UK car franchises tells us that a medium-sized car franchise UK costs anywhere between £20,000 and £75,000.

If you have been following our blog (you should, if you aren’t!), you’d know that this investment range falls in the zone in which most service-based franchises operate.

Buying a car and automotive franchise UK means that you also get unique benefits and perks from the franchisor. These usually include marketing support, IT help, business assistance, franchise finance and more. We’ve talked at length about how these factors franchise-buying decisions in our free how to choose a franchise guide.

Should You Buy A Car And Automotive Franchise UK?

Car franchises UK make for an ideal fit for you if you have prior experience in the industry.

That doesn’t, however, mean that you can’t ‘make it’ if you haven’t worked in the industry. With the right kind of people working for you, it’s definitely possible to make a car franchise UK work, provided that you’ve chosen your franchisor based on meticulous franchise market research.

For would-be franchisees, we have prepared a handy franchise checklist – you can download it here for free.

Top Car Franchises UK

Car and automotive franchises UK occupy a significant cross section of the UK franchising world. Naturally, there are dozens of franchise opportunities available in this sector – and with these numbers comes confusion. To give our readers a fair idea of what a typical car and automotive franchise brings on board, we have compiled a short list of some of the most popular UK car franchises.

Please note that all the numbers and details mentioned below are subject to change. It’s best to contact the franchisor business for more information.

1. Revive!

  • Minimum Initial Investment: £14,000 (plus VAT)
  • USP: Van-based smart car repair business
  • Exclusive territories with high scalability
  • 6-8 vans per territory
  • Full training
  • Business support
  • Marketing support
  • Exit support
  • Full BFA Member

2. Hometyre

  • Minimum Initial Investment: £5,000 (plus VAT)
  • USP: Van-based tyre business
  • 16 years in business
  • No industry experience required
  • No need to stock inventory – orders fulfilled by the franchisor
  • Marketing support
  • Full training on offer

3. Motor Republic

  • Minimum Initial Investment: £18,000 (plus VAT)
  • USP: Car rental and leasing services for businesses
  • 6-8 vans per territory
  • Home-based franchise opportunity
  • Ideal for franchisees with sales/B2B background
  • Marketing support
  • Exit support

4. Optic-Kleer

  • Minimum Initial Investment: £15,000 (plus VAT)
  • USP: Windscreen repair business
  • 25+ years in operation
  • Over 50 active franchise units
  • Full training
  • Marketing support
  • Associate BFA Member

The Wheel Specialist

  • Minimum Initial Investment: £44,997 (plus VAT)
  • USP: Wheel repair, refurbishment and customisation services
  • Finance assistance may be available
  • Full training provided
  • Business support
  • Marketing support
  • Associate BFA Member

Car And Automotive Franchises UK – The Takeaways

  • Industry experience isn’t as important as your ability to raise finance and run daily operations smoothly.
  • Car franchises UK are for you if you can manage a group of employees well.
  • As ever, the franchise market research is important.
  • Keep an eye of market trends – especially related to emission regulations, electric cars and self-driving cars.

Related: Automotive Franchises – Search Franchise Reviews Directory

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