Whether you’ve dreamt about starting your own car business or want to unlock the business potential within your car, our car business ideas are sure to get your creative engine revving. From additional income streams to profitable automotive enterprises, we’ll get you ready to shift gears on an exciting new business journey.
Is an automotive business right for you?
Setting up a new automotive business is an exhilarating time, but before you drive full speed into your venture, ask yourself if your chosen car business idea is right for you. Whether you plan to sell, repair, or service cars or use your own vehicle at the heart of your business, you should weigh up the pros and cons carefully.
As you brainstorm business ideas for cars, you’ll encounter plenty of pros to entering the automotive business, including:
- A large customer base – By the end of 2023, there were over 41 million licensed vehicles on the road in the UK. If you’re looking to offer car services, across most parts of the UK you’ll have an excellent customer base to tap into.
- An essential service –Whether it’s new tyres, a repair, or even a valet, many automotive services are considered essential by vehicle owners. You’ll enjoy a quick turnaround of work because customers want a speedy service. In turn, this will help with your business cash flow.
- Low startup costs – Many of the automotive business ideas discussed below benefit from low startup costs. Indeed, if you’re looking to centre your business on a car you already own, you’ll have minimal costs. If you’re turning a hobby into a business opportunity, you may already own many of the tools of the trade, lowering your initial costs. Some car businesses start from home or allow you to be mobile, removing the costs of renting or buying business premises. A great many automotive businesses enjoy growth through word-of-mouth advertising, meaning you won’t need to channel too much money into marketing.
- Flexibility – If you’d like to set up an automotive business in your spare time, alongside your current job, several car businesses are ideal for this. Grow your customer base organically until the new venture is financially viable. As your own boss, you’re in control of the all-important work-life balance.
- Scalable – Car businesses are often readily scalable, whether that’s buying more cars to sell, hiring more mechanics in your repair shop, or opening new premises. If the demand is there, you can easily expand.
- High margins – All businesses are feeling the squeeze of escalating overheads, but car businesses, with their high hourly rates, can still enjoy decent margins, allowing them to nurture profits despite the nation’s soaring costs.
- Rewarding – If you’re entering the automotive business because cars are your passion, you’ll find all aspects of business ownership rewarding. You’ll take pride in your work, meet like-minded people, and feel motivated by customer satisfaction, all while earning money.
Though you’re full of enthusiasm for your car business idea, it’s prudent to weigh up the cons too. These include:
- Competitive markets – Though there are plenty of car owners and customers who need the services you can provide using your own car, you may face stiff competition. Well-established car businesses can hold the lion’s share of the market, so you’ll need to think carefully about your unique selling points and carve out your own niche.
- Inconsistent work – In some car businesses, the size of jobs you obtain can vary significantly. While you become established, this can make your finances unstable.
- Self-employment pressures – There’s a big difference between being employed and self-employed. When you’re sick or taking time off, you may stop earning completely. You’ll need to factor in all your overheads, taxes, and insurance costs.
- Time commitment – Especially in the early years of your business, you may find yourself working long days and taking little time off.
- Financial risk – The buck stops with you. When you set up your business, you must be prepared to lose whatever money and time you put into it. Remember to mitigate potential losses with comprehensive business insurance.
20 profitable car business ideas
You thought carefully about whether a car business is a good fit for you and now you’re ready to sharpen your focus and choose a car business idea. We’ve got plenty of inspiration, from ideas for the seasoned automotive professional to the go-getter with a car who’s ready to clock up the miles to succeed.
Mobile automotive business ideas
People live busy lives. By offering mobile car services, you not only provide the service they need, but you save the customer time too. Rather than having to take their car to an automotive shop, they can carry on working or enjoying their free time while you bring your service to them. Remember, people are willing to pay extra for this convenience! With no need for premises and low overheads, a mobile service is a low-risk approach to starting a car business.
1. Mobile car washing/valeting
Take your car detailing skills on the road, offering car washing and valeting at customers’ homes or places of work. As well as looking for private clients who like to keep their vehicle ship-shape, strategise by looking for corporate clients with fleets of vehicles you can contract weekly or monthly cleans for.
2. Mobile oil changes
An oil change is crucial for car maintenance, yet many car owners put it off. Offering this as a mobile service encourages people to tick this task off their list without needing to go to the bother of driving to their dealership and waiting for the oil change.
3. Mobile servicing
If you’re a qualified mechanic, take your vital servicing skills on the go. The convenience of having a car’s annual tasks completed without having to head to the garage will make this car business idea
4. Mobile mechanic
From breakdowns to post-MOT repairs, everyone needs a trusted mobile mechanic on speed dial. You can charge a higher rate for emergency callouts and enjoy better profit margins by repairing cars at customers’ homes rather than paying for premises.
Utilising your own car
If you own a car, think about monetising this asset. Though for some roles, a luxury or vintage vehicle is a must, for others, all you need is a reliable, taxed, insured car that can keep up with your business aspirations.
5. Limo
From school proms to wedding cars, limos remain in high demand, especially during the events season, allowing you to charge a premium hourly rate. If you own a beautiful vintage car, a sporty number, or have the finances to invest in a stretch limousine, you can start taking bookings and enjoy driving excited clientele to their special events.
6. Women’s taxi
If you’re a female driver, offering a cab service for women only fills a niche and can offer a generous and profitable customer base. This makes you a valuable service in city centres each night, and especially at the weekends.
7. Driving instructor
Are you cool and calm under pressure, and love the idea of teaching people how to drive safely and confidently on the road? Undertake your driving instructor training and you can turn your vehicles into a lucrative money maker. With a steady stream of teenagers hitting 17, a good instructor enjoys a never-ending supply of business.
8. Delivery driver
We all know that online shopping reigns supreme, creating many new delivery driver opportunities. Though you can turn to well-known delivery companies, there are other avenues to explore, including the transport of medical supplies and high-value items, and the ever-popular take-away delivery.
9. Rent your car
Did you know you can rent your car to production companies for filming for a decent day rate that requires minimal effort on your part? It doesn’t have to be a high-end motor to be in demand. Old models are also sought-after, adding authenticity to film sets.
Car business ideas with premises
If you’re most comfortable with a brick-and-mortar business, there is a range of car business ideas centred around premises.
10. Repair shop
If you’re a mechanic ready to progress your career, setting up a repair shop is the natural next stage. With premises, there’s the potential to work on multiple vehicles simultaneously and scope to employ other mechanics. Premises allow you to store larger pieces of equipment and vehicle lifts, enabling you to perform tasks you couldn’t easily do as a mobile mechanic.
11. Tyre store
Tyres are in constant demand and if you’ve spotted a gap in your local market, a tyre shop can be very lucrative thanks to that ongoing need. Along with a range of seasonal tyres, you can also offer repairs.
12. Components and parts store
Whether you’re a mechanic or a car enthusiast, running a store selling parts can be a profitable enterprise thanks to good margins. Not only will you offer a vital service to mechanics and dealerships, but also to those who repair and restore cars at home.
13. Accessories shop
Modifications are extremely popular; establishing an accessories shop can be an excellent automotive business idea. Keep on top of the latest trends in accessories and modifications or tap into the growing trend for converting vehicles into campers and you’ll have a diverse and affluent customer base for your new business.
14. Restoration shop
There are many wonderful vintage cars in need of TLC and by running a restoration shop you can combine your love of retro vehicles with your mechanic skills. Breathe new life into old models to sell on or offer restoration work for collectors, charging premium rates for your specialist skillset.
15. Detailing/valet shop
If you want to offer an exceptional valet service, setting up a shop will allow you to have all the equipment and cleaning resources to hand. If you’re keen to provide a luxury service at a higher price point, having your own premises offers a more professional feel than a mobile service. You’ll be able to take on a greater workload from premises, raising your income.
16. Used car shop
There’s a buoyant market for used cars, across all price points. A used car shop is a great car business idea if you’re skilled at servicing and repairing vehicles, allowing you to boost the profit margins on the used cars you plan to sell. Though this is a business that requires a larger initial outlay, the potential for profit is good.
17. Automatic car wash
A superb passive income stream, installing an automatic carwash allows you to enjoy a steady flow of mucky cars all day, every day. The initial outlay is high, and you need the right location, but if you have the wherewithal to set one up, this can be a profitable and low-maintenance car business.
18. Electronic Vehicle Charging Station
Get ahead of the game by installing an EV charging station. These charging ports are going to become a defining feature of the future of motoring, so establish your business now and be ready for the continued influx of EV’s on the road. After the initial installation and with insurance in place, this can be another low-maintenance money earner, especially if you take subscriptions and sell advertising space on your charging stations.
Working from home
If you want car business ideas that you can run from home, look no further.
19. Battery repair and reconditioning
For vehicle owners and mechanics who don’t want to fork out for a brand-new battery, a repair and reconditioning service is ideal. If you understand how to work on a range of car batteries and can safely store the chemicals required to top-up a battery, you can establish a business that is likely to grow in popularity as car owners seek to repair rather than replace expensive batteries.
20. Blogging
Taking the idea of the ever-popular automotive magazine to an online platform, proficient car bloggers may be able to monetise their work through advertising and sponsorship. Vehicle reviews are particularly popular, especially if you’re au fait with the latest automotive technologies.
Top 5 considerations for starting a car business
You’re overflowing with business ideas for cars, you’ve settled on a niche and now you’re ready to put the key in the ignition and get going. Our list of key considerations for starting an automotive business will help keep you on the right track.
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Know your competitors
With all those vehicles on the road, there may be plenty of competition out there offering a similar service. Do your market research to understand what your competitors offer, and who their target customer is, and then work out how you can offer something a little different.
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Know your customers
Understand what local customers want from the type of service you plan to offer. This can vary from area to area. An urban demographic may prioritise convenience while an older demographic may enjoy a high level of personalised service. Though it may be tempting to simply undercut your competitor, this doesn’t always equate to luring customers. When it comes to automotive services, the key driving factor for a customer is usually quality and they may think a cheap service will be poor quality.
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Be flexible
As you learn more about your competitors and customers, you may need to pivot to curate a business that fills a gap in the market. If you loved the idea of being a car valet but find your local area is saturated, you could offer an eco-friendly service, tapping into the sustainability movement. If you dream of a tyre shop but your local town already has one, you could open one and offer an additional service, like mobile tyre fitting.
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Focus on finances
You start investing time early in the business development process and then the money injections can soon follow. A comprehensive business plan will help you organise your business finances, preventing you from overspending during the set-up stage.
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Protect your business
Think carefully about how you protect these investments and consider taking out business insurance early in the process. There are many ways you can protect your business with insurance, from public liability to deal with third-party claims to personal accident cover to keep your income protected if an accident leaves you unable to work. Keep in mind, employer’s liability cover is mandatory if you employ staff in the UK, even on a part-time basis.
For over 30 years Park Insurance has been supporting and championing the UK’s small business owners. We understand and value your hard work so get in touch today to see how we can tailor a bespoke policy that protects all aspects of your automotive business.