It’s no secret that many of today’s mass-produced cars will end up getting recycled. Still, some models become collectibles and get saved from the scrapheap. The thing about car parts is that they become hard to find after a while for discontinued models.
As a result, classic car owners end up paying premium prices for the parts that still exist. Even if they are in a used condition and are looking somewhat worn! One way around the problem is to manufacture the parts owners need for their cars.
Source: Wikimedia Commons
The vehicle manufacturer won’t resume making parts for older cars. And so here lies an opportunity for an entrepreneur to build a business focusing on such parts! Is it something that interests you? If so, today’s handy guide will give you a rough guide on the topic. Here is what you need to know:
The first thing you need to do is research the market. As you can appreciate, there are plenty of classic cars out there. Sure, you could make parts for all those vehicles. But, the time and financial investment involved is enormous! Instead, you should focus on a particular niche market with a high demand for parts.
For example, if spares for the Jaguar E-Type shown above are hard to find, you could focus on that market. You should also determine if anyone else offers the same service as you. In such a niche industry, you will make more profit if you’ve got no competitors.
Next, you’ll need to consider how you will manufacture the parts for your niche market. As you might be aware, car makers source parts from various suppliers for their vehicles. All vehicle manufacturers do is assemble cars; they don’t build any parts themselves.
It’s likely you will need to work with other firms to create the parts you want to sell. For example, you might work with CCTY Bearing so you can manufacture suspension parts. Or you might order drive belts from Gates.
There will be times where it might be possible to create parts in-house. One innovative way of doing so is by the use of 3D printing! You could create certain parts out of plastic or metal using a 3D printer. Of course, you’d need to design the parts on a computer first using some CAD software like AutoCAD.
When you’ve figured out how to make your parts, you then need to consider how and where to sell them! For such a niche market, I recommend selling to a global audience. The Internet is an obvious way to help you achieve that goal, as you can set up an e-commerce website and sell online.
Also, think about selling wholesale to firms that specialize in spares for classic cars. It’s crucial your business plan details a multi-channel sales strategy. That way, your startup business can grow.
The manufacture of parts for classic cars is a lucrative market. Still, as with any business idea, thorough research is key to a successful outcome. Good luck!