Start An Automobile Parts Business - Business Ideas

Updated: September 15th, 2022
Start An Automobile Parts Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

The automobile wholesale business sells auto parts to other businesses. This can include anything from car seats and tires to the engine oil and brake pads. The main goal of the automobile parts business is to source the items at a lower price and sell them to retailers at the wholesale price so that their customers can make a profit when they resell the products.

The typical customer base for this type of company will be auto repair shops, car dealerships, and body shops. Before you can open the automobile wholesale business it is good idea to research the market to see how the competition is, and know which parts are in demand.

Starting an automobile parts business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell automobile parts, or selling automobile parts online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$378B
starting costs
$30.1K
gross margin
30%
time to build
720 days
growth
Organic social media
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$6,900

Employee & Freelancer Expenses

$151

$352

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$63

$700

Inventory Expenses

$350

$14,750

Vehicle Expenses

$2

$10,004

Training & Education Expenses

$0

$2,000

Website Costs

$13

$215

Food Business Expenses

$25

$500

Retail Business Expenses

$0

$950

Advertising & Marketing Costs

$75

$2,486

Successful Businesses

Business URL Rank

Transamerican Wholesale

transamericanwholesale.com

152,832

Lear Corporation

lear.com

198,632

National Automobile Dealers Association

nada.org

205,262

just-auto

just-auto.com

217,252

Overlander

overlander.com

332,277

Automotive Logistics

automotivelogistics.media

482,733

The Automotive Component Manufacturers Association of India

acma.in

677,553

FuelTech Brasil

fueltech.com.br

700,475

Scrubblade Inc.

scrubblade.com

848,826

Adrenaline Offroad

adrenalineoffroadoutfitters.com

868,754

Mighty Auto Parts

mightyautoparts.com

954,718

Pros & Cons

Pros Description

Rewarding work

Starting a automobile parts business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a automobile parts business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Automobile Parts Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Unlimited income potential

With starting an automobile parts business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Cons Description

Crowded Space

Competition is high when it comes to your automobile parts business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A automobile parts business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Low margins

The gross margins for your automobile parts business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the automobile parts business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Work can be inconsistent

As a automobile parts business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.