Used Cars For Sale Louisville Ky, As America’s cars age, deep-pocketed companies pour into repair business

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Used Cars For Sale Louisville Ky – America has become the land of an old car – a really old car. From Kia Rios who is tired on the road to the battered Ford Broncos, around 81 million cars will be used 16 years or more by 2021, experts estimate, a 20 percent increase in old vehicles nationally in five years.

Call this the golden era for clunkers.

With mechanics at scarce gas stations and fewer car dealers in business, an increasingly old fleet of vehicles with cracked windshields, tired fuel senders, rattling brake calipers and other roads raises simple questions: Where Will you go to repair a time-tested car?

Used Cars For Sale Louisville Ky

That possibility will become a shiny new workshop.

In cities across the country, bag companies are in the business of repairing and maintaining vehicles. Just like the fast-food chain, generations ago stepped aside from the visitor’s point of view, a chain of car repairs supported by wealthy investors sprang up, attracting customers from locally owned garages.

Large companies acquired more than 500 local stores across the country last year, a consolidation led by Detroit-based Icahn Automotive Group LLC, owner of maintenance brand Pep Boys, reports the trade journal Tire Business. At the same time, the repair chain was established expanded.

In Memphis and Nashville, for example, Meineke Car Care Centers LLC is looking for potential franchise owners who can build and operate new shops that are financed in some cases by US Small Business Administration loans.

While the new franchisor must pay the Meineke license fee of $ 35,000 and show a minimum net value of $ 250,000, experience under the hood is not considered a necessity.

“We are looking for candidates who are aggressive and want to grow,” said Devin Hughes, director of franchise sales for Meineke, a brand with around 900 stores across the country. “Most of our franchises are from American companies and want to build investments for themselves.”

While Louisville, Kentucky, and Washington contain many Meineke outlets, Hughes said, under-served metropolitan areas include Dallas, Detroit, north of Indianapolis, Memphis, Nashville and Orlando, Florida.

Overseeing the expansion strategy of the car shop is Charlotte, North Carolina, Driven Brands Inc., and its intelligent chief executive, Jonathan Fitzpatrick. Former Burger King chief executive and officer Fitzpatrick intends to double Meineke’s annual sales in the next five years to $ 1 billion.

Profits from expansion will flow to Atlanta, home of owner Driven Brands, Roark Capital Group, a leading investor in a stable national chain. These include Arby, Cinnabon, Jimmy John’s, McAlister Deli, Southwest Moe and Schlotzsky’s Grill. Atlanta company bought Driven Brands three years ago from New York investors, Harvest Partners LP, whose pool of investments includes money from top financial managers including New York-based Goldman Sachs Asset Management.

Buy a used car

Just why repairing old cars has attracted large investors partly rests on this figure: 100 million.

Over the past six years, sales frenzy has made 100 million new cars and trucks on US highways. American appetite for horsepower and steel might make you think every other vehicle on the road looks new. Look again.

“Even though the number of new cars is high, there is tremendous growth in very old vehicles,” said automotive consultant Jim Lang from Lang Marketing in Fort Wayne, Indiana. “In fact, vehicles that are 12 years old and older cover almost half of the vehicles on US roads.”

Boom sales contribute indirectly to the clunker fleet.

Strong consumer demand in relation to low interest rates allows automakers to pack expensive options into vehicles and increase prices from year to year in many cars. This summer, buyers at specialized dealers pay $ 35,285 for new vehicles, reports market analyst Edmunds.com Inc. from Santa Monica, California. This is around 25 percent of the average transaction price a decade ago.

Car prices have risen so fast that many middle-income buyers are retreating from new vehicles. They turned to autos using the latest model. This year around 40 million used cars and trucks of all ages will change hands, compared to sales of around 17.3 million new vehicles.

Strong demand raised prices – the average automatic cost used by $ 20,085 in October – and encouraged low-income drivers to find affordable, final-model vehicles. They bought an older car instead. This demand in turn raises prices on older vehicles. Scarcity is also a factor.

When layoffs increased in the 2008-2009 recession, sales of new cars fell and plants automatically cut output. Currently there are relatively few vehicles assembled between 2009 and 2012 on the way.

“Consumers who want to get out of record high prices of new and used vehicles are short on the market used,” market analyst Edmunds reported recently, noting that “vehicles under $ 10,000, the most affordable segment, are increasingly scarce.”

Instead of paying a lot for used cars, many drivers decide to repair and maintain their old trips. Working in support of them is vehicle reliability, Lang said. Cars designed since the late 1990s tend to last longer than previous cars and trucks.

As a result, the nation’s fleet of nearly 300 million cars and trucks contains extraordinary parts of old vehicles. About 81 million cars will be on the road 16 years or more in 2021, compared with 62 million in 2016 and 35 million in 2002, predicting the Automatic Care Association, a trading group in Bethesda, Maryland, in its last state. Automatic Industry Report.

It’s on a busy highway, between drug stores, fast food restaurants, gas stations and dollar stores, where a chain of repairs appears.

Only 40 percent of drivers who carry out routine maintenance, reports the Auto Care Association, noted that most drivers expressed discomfort as an excuse to avoid work. Now, the chain of improvements is beginning to take root in the routes that motorists take between home and work.

“The working class market is where we focus,” Hughes said, pointing out that new shops in Meineke often feature children’s playrooms and bright lobbies.

Car repair

For more than two decades, 13 percent of national automotive dealers have been closed, leaving many motorists far away from dealer mechanics. If work is to be done, drivers tend to rely on locally owned workshops, especially drivers of domestic brands made by Chrysler, Ford and General Motors, Lang said.

Because local shops still account for around 65 percent of the maintenance and repair business, many investors expand by buying shops. Icahn Automotive, for example, acquired more than 225 stores last year, including Mathis Tire & Auto Service, Memphis network with 12 stores, and W.S. Haynes, a Memphis business two shops.

Seeing the emergence of well-funded shops, Fort Lauderdale, Florida AutoNation Inc., the country’s largest automotive retailer, established the appointment of AutoRepair Approved for garages in partnership with AAA, an insurance company and car care organization based at Heathrow. , Florida. Retailers said earlier this year that 220 facilities were under the program.

The deaths of smaller shops, said Lang, whose research is relied on by the Automatic Care Association, are partially traced to increasing use of electronic systems in vehicles. While systems such as fuel control modules increase vehicle reliability, they require expensive repair tools and diagnostic equipment that often go beyond the means of family business.

Old car fleets have reshaped the automotive industry in other ways. Tire maker based in Nashville, Bridgestone Americas Inc. responding to industry consolidation last year. Bridgestone and Akron, Goodyear Tire and Rubber Co. based in Ohio formed TireHub LLC. A distribution company was established to ensure that the remaining independent shops throughout the country have a continuous supply of Bridgestone and Goodyear products.

Another company that is affected by the aging fleet is AutoZone Inc. The Memphis-based retail network operates more than 6,000 stores. Fill the parts in the warehouse for various vehicles, Lang said, “putting the inventory load on them. They cannot stop older components at the rates they have ever been able to. “

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