Automotive After Market
It is a fact that people are keeping their cars longer than ever before. According to the US Bureau of Transportation, the average age of passenger vehicles in operation in the United States has steadily risen over the last couple of decades, from 8.4 years in 1995 to 11.4 years in 2014,* and continues to increase year after year. Recently, people have been faced with an economic climate that has made the prospect of purchasing a new vehicle every couple of years very unfavorable, if not impossible. Statistics prove that people are increasingly repairing their cars as opposed to buying new vehicles at the first sign of significant repair concerns. As a result of this, the automotive repair industry continues to see rising demand for quality services, even during tough economic times.
The automotive aftermarket is comprised of many segments, each answering a specific consumer need. You can find specialists in exhaust systems, brakes, body work and painting… and, of course, transmissions. While each segment serves its specific sub-markets, the thoughtful entrepreneur will want to examine the strengths and weaknesses of the sub-markets themselves.
Transmission repair is often not deferrable, which makes it a year-round, recession-resistant business. When a car’s transmission fails, it fails, and until it is repaired, the car is of no use to anyone. Unlike many other segments in the automotive service industry, the consumer must make an immediate decision in resolving transmission repair issues.
The urgency of transmission problems makes for a business that is resistant to economic fluctuation, and often, prospers during hard times when people can’t simply buy a new car. Also, because transmission problems often come in the icy dead of winter, the sweltering heat of summer, and just about every time in between, there is a steady, year-round flow of customers.
US Department of Transportation-
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