It is a fact that people are keeping their cars longer than ever before. According to the NADA (National Automobile Dealers Association), the average age of vehicles in operation in the United States has steadily risen over the last couple of decades, 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. People are repairing their cars, as opposed to buying a new one at the first sign of 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, in brakes, in body work and painting... and of course, transmissions. While each segment serves its specific submarkets, the thoughtful entrepreneur will want to examine the strengths and weaknesses of the submarkets themselves.
Transmission service's non- deferability makes it a year- round, recession resistant business. When a car's transmission fails, it fails, and until it get's fixed, 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 concerns.
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 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.
Sources: NADA report on average age and number of vehicles- http://www.NADA.org - RL Polk, 2009.
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