Oil Change Franchises: Why Total Car Care is a Better Investment

There are many different avenues that lead someone into business ownership. Sometimes, it’s as simple as finding a concept that can be a sound investment. Other times, it may be the hope that a longtime passion can one day be a career. Both options often lead hopeful entrepreneurs into franchising, specifically when it comes to franchises in the automotive industry. And no matter their background or passions, those with expertise, dedication and a good business sense can thrive in the automotive franchising world – particularly when they know which areas of the aftermarket provide the best opportunities.

What Is Aftermarket Car Care?

The automotive aftermarket is the secondary market after an automobile has been sold to a consumer. It has several sectors, from selling parts to providing repair services, which are all growing in importance. As cars stay on the road longer than ever and knowledge about the benefits of regular maintenance continues to grow, the automotive repair and maintenance industry is expected to top $800 billion in the next five years, according to a study by Reports and Data.

As with any other industry, the aftermarket service market is comprised of businesses and brands that differ on a number of factors – one of those being complexity of service.

Oil change franchises are a common choice among prospective buyers because of brand recognition, but many realize in their research that because of the challenges of the oil change business model, the best long-term option is franchising with brands that offer total car care service and can address more complex repairs.

What Challenges Do Oil Change Franchises Experience?

The largest challenges facing oil change franchises are the profit margins of the service and a reliance on rapid customer churn.

In addition to synthetic oils extending the period between oil changes, the service itself offers a relatively low profit margin. That means that brands built on that model have to attract a much higher quantity of customers each day to maintain their viability, and any long-term dips in traffic could have a dramatic impact on their success.

Is Total Car Care A Better Investment?

Many of the factors that make oil change franchises difficult in the long term are the same factors that allow total car care franchises like AAMCO to thrive. From favorable profit margins to recession-proof sustainability, here is what makes complex repairs so valuable to both business owners and customers.

Less Likely for DIY to Cut into Business

Expertise is at a premium when it comes to total car care. While there are certainly some DIY car enthusiasts that could make a project out of their vintage vehicles, the majority of today’s repairs rely on costly professional diagnostic tools and highly technical parts now that so much is computerized.

Additionally, while some drivers have a tendency to put off oil changes because they seem like general maintenance, most big-ticket repairs have to be addressed immediately – or else driving is no longer an option.

Less Reliance on Customer Volume

While oil change franchises have to churn several dozen customers in and out of the shop each day to make a consistent profit, shops that provide total car care can work on a smaller volume. The parts involved and the more technical labor needed, costs, and profit margins are much more business friendly. Instead of filling up the garage every half hour, owners and their staff are able to focus more intently on the customer and provide quality care, still knowing there is revenue even without the high volume.

Attract Higher Quality Employees and Technicians

One of the most foundational factors of a successful business is a talented and well-trained staff. While there are certainly qualified, dedicated employees in auto businesses of all types, total car care attracts employees with a higher technical expertise because of the opportunity to do more complex work. Not only does AAMCO attract employees of that caliber, but it also provides further training through its first-of-its kind AAMCO University.

Better Prepared for Future Advances

It’s no secret that technology is rapidly changing in the automotive world, and that highly technical training is becoming more important than ever. As advances continue to take hold in the industry, there will be an increased need for businesses who have the expertise to handle dramatic shifts in the way cars are made. Much of AAMCO’s training is specifically designed to position its owners and technicians to expertly address emerging technology such as hybrid and electric vehicles. As the automotive products evolve, so must the people dedicated to repairing them.

Franchises that offer total car care are uniquely positioned to fill that role.

Recession-Proof

The true mark of a successful business model is its ability to withstand the highs and lows of any economic outlook. The past year has shown that few businesses can maintain their success as consumer spending habits shifted.

Total car care businesses have preserved their position as a service worth a customer’s dollar. Families may feel routine maintenance can be put off when watching their wallets, putting oil change franchises at risk during economic downturns, but most complex repairs are non-negotiable when you need to get back on the road. Additionally, recessions make consumers nervous about riskier purchases. While a large repair might be unwelcome, it is preferable to the anxiety of taking out a car loan for a new vehicle when times are tight.

The most recent financial crisis caused by COVID-19 placed even more importance on “essential” businesses. When essential workers had to fulfill their roles during the pandemic, AAMCO’s total car care was instrumental in keeping them on the road to do their job.

It’s important to find a business model that not only provides that level of value to the customer and community but also provides a sense of security for you as the business owner, knowing there can still be success when other businesses are dealing in uncertainty.

Choose AAMCO

Total car care provides an invaluable and necessary service to drivers across the country, regardless of economic circumstances. AAMCO, the nation’s leading automotive franchise in total car care, has proven to offer business owners a consistently profitable model that can not only meet the challenges of today but is also uniquely positioned to win the future.

In addition to the advantages the total car care model has over oil change franchises, entrepreneurs who invest in AAMCO also receive world-class support along with the strength of a brand name with more than a half-century of history. AAMCO prepares its franchisees with extensive training and even provides first-of-its-kind education to employees with AAMCO University, ensuring they are ready to address developing technological advances. All of those commitments are part of AAMCO’s commitment to remaining the world leader in total car care.

Those advantages only matter when dedicated franchisees put them into practice. Contact us today to learn more about the benefits of franchising with AAMCO and joining the nation’s premier brand in an industry poised to continue growing.

 

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