Are you interested in starting a business in the automobile industry? If so, you should understand that the industry has so many categories. Some are lucrative; some are not. Some require low capital; others demand a truckload of startup resources.
In this article, we have tried to put together business ideas that can flourish in the auto industry going forwards. We tried to include both low and high capital investments. Keep reading to find out the idea that will work for you.
Most lucrative business ideas in the auto industry
Here are some business ideas that we think can easily flourish in the automotive industry:
- Auto detailing business
Auto detailing is a fast-growing business that restores the cars’ aesthetics to look as if they popped out of a showroom. Modern individuals are petrolheads that love shiny things, and they can’t tolerate discoloration, dents, and scratches. These reasons have made auto detailing an essential service to car owners.
The encouraging part about auto detailing is that you can learn the trade quickly. There’s a boatload of both paid and free tutorials online that can teach you almost all the detailing services.
You can start a detailing business with roughly $5,000 to $10,000 if you know where to buy products and equipment inexpensively. Nevertheless, it’s easy to spend way more than $10,000. You can also opt for auto detailing software that will make your life easy and let you focus on priority things.
- Car wash business
Like detailing, a car wash is basic for many auto owners. It can be a profitable business, but chances are that the competition will be high. So, you need to pick a strategic location and market yourself tediously to get new customers and keep them.
- Cab service
People no longer want to wait hours for the bus to arrive. They already have meetings waiting for them, deadlines to beat, or chores waiting at home. The need to get to a destination fast is why Uber became so successful.
If a slew of taxis does not already infiltrate your region, this could be a treasure chest waiting to be snatched. We love the idea behind the taxi business because you can start with one car and expand later.
- Auto body store / spare parts distribution
With the number of new vehicle owners growing every day, opening a spare parts distribution business can be an excellent idea. Not only will car owners with their own mechanics make purchases from you but repair shops as well.
Since the goal is to cater to a broad audience, you must stock parts for most common cars and the tools needed to install them. As such, you need a good starting capital and a sound business plan that can qualify a loan.
- Used car dealership
Almost everyone has a desire to own a car. Unfortunately, sometimes the pockets aren’t deep enough to warrant a new “whip.” So, customers prefer heading to the nearby used cars dealership.
If this sounds like something you are passionate about, there are plenty of customers. However, there are a lot of processes involved, from acquiring the car, repairing, servicing, and finally selling it. You need a good financial plan to start such a business.
- Start an electric charging station for cars
According to Electrek.co, the number of electric cars in the US grew to 1.7 million in 2021. Imagine, for a moment, what that number will be in 2 years? Electric cars are still a craze, and their convenience propels their popularity.
As of now, starting an electric charging station in remote areas may not be advisable. However, if you live in a big city, this idea is still novel, and therefore competition will be low.
- Get into the car rental business
If you have a couple of vehicles lying around idle, you can start a car rental business. Your job will be to lend cars to tourists and individuals that prefer to travel fast and comfortably. This venture, too, could be costly as it has many moving parts. For instance, you will need to buy cars or partner with dealership companies, which comes with many processes.
Nevertheless, if your location is strategic, a car rental business can be a worthwhile idea.
- Automobile blogging and vlogging.
If cars get you fired up and you know so much about them, why not go the digital route? Yet you can’t get enough money to start a car wash, a detailing business, or a taxi business. Guess what else you can start with barely $1,000? An automobile magazine. You don’t have to print them out. Just start a website, publish content and share digital magazine copies through emails.
The next best options would be to start a review site of car parts or create vlogs to help car owners make better purchasing decisions.
- Mobile oil change
People are becoming extremely busy, and it’s easier for them to skip or forget a scheduled oil repair. So if you know your way around the engine, start a mobile oil change business. Your convenience will be the core selling factor. All you need is your means of traveling to your customer’s destination and the right tools for the job.
- Driving school
At some point, it is hard to be taught how to drive. It’s a must-have skill for all adults. This means there will always be a demand for driving lessons. So anyone with sufficient capital or several cars can register a training school and offer guidance as an accredited institution.
Driving schools are all over the place in big metropolises. So you need to be strategic about the location of your business.
Wrap up
There are many business ideas that can flourish in the auto industry. However, most of them will need heavy initial funding, intensive planning, and extensive marketing. However, with passion and commitment, almost any business idea can get off the ground to become an admirable establishment.
Before you pick any business idea, make sure you are passionate enough to see the project through. Cheers to fruitful beginnings. Sayonara!
Author Bio: Ashley Johnson drives content strategy at DetailPro, a cutting-edge cloud-based software solution for auto detailers and mobile detailers.
