1-800-Radiator & A/C
There are 255 million automobiles and light trucks on the road in the United States. These vehicles will travel nearly three trillion miles in 2012 -- an average of 12,500 miles per vehicle. In 2012 the average vehicle used $549 of replacement parts—a total of $80 billion of parts at wholesale distribution pricing [AAIA factbook 2012].
According to the BB&T Capital Markets Automotive Aftermarket Investment Banking Group, which provides mergers-and-acquisition and capital-raising services to leading middle-market companies and private equity groups, the market for aftermarket automotive parts is growing steadily. As of 2011, total consumer spending on aftermarket auto parts had enjoyed a 10-year compound annual growth rate of more than three percent and is projected to continue to grow steadily through at least 2014.
According to the AAIA, new car dealers have been losing their share of aftermarket parts for more than a decade. Aftermarket distributors have seen their opportunity grow because aftermarket parts’ quality is increasingly comparable with that of original equipment parts sold by new car dealers, while the cost is significantly less. This provides ongoing new opportunity for aftermarket distributors such as franchisees of 1-800-Radiator & A.C..