Whether supplying components to national chains or fulfilling local service needs, companies in the aftermarket auto industry operate in a fast-moving, margin-sensitive environment. Long production lead times, fluctuating demand, and inconsistent payment cycles can create friction at every point in the supply chain. To stay competitive and improve operational efficiency, businesses need reliable access to capital that moves as fast as the market does.
Raistone provides innovative working capital solutions tailored to the needs of automotive parts manufacturers, distributors, and service providers. Our market-leading financing tools — including Accounts Receivable Finance (ARF) — support tier 1 and tier 2 suppliers and their partners, helping businesses stay agile and resilient in the face of supply chain volatility.
Evolving market pressures for aftermarket auto suppliers
The aftermarket auto industry is navigating a complex landscape marked by shifting consumer behaviors, economic uncertainties, and technological advancements. These factors contribute to unpredictable sales patterns and financial strain for suppliers.
Slowing new car sales drive aftermarket demand
The automotive care industry has seen strong and consistent growth, with increases of 8.6% in 2023, 5.7% in 2024, and a projected 5.1% in 2025. This upward trend is expected to continue, with the market growing from around $443 billion in 2025 to over $565 billion by 2032, reflecting a compound annual growth rate (CAGR) of 3.6%.
This is partially driven by a decline in new vehicle sales, with the average age of vehicles in the U.S. reaching 12.8 years in 2025, and a growing preference for maintaining existing vehicles. These trends have led to a heightened reliance on aftermarket services, intensifying competition and market unpredictability.
An aging vehicle fleet presents opportunities for aftermarket suppliers and requires them to meet the needs of older vehicles, which could lead to increased inventory requirements given the decline in DIY repairs due to increasing technological complexity.
Advancements in vehicle technology have made repairs more complex. Consumers are increasingly turning to professional service providers for maintenance. This shift in consumer behavior necessitates suppliers to support professional repair channels, where margins are thinner, and expectations are higher.
The combination of these factors makes volume forecasting more difficult and stretches funds across procurement, production, and delivery cycles.
Capital intensity and global trade pressures
Auto parts suppliers are navigating a costly number of challenges, from the shortage of skilled labor and resulting increase in wages to unpredictable trade policies, that collectively squeeze margins and destabilize cash flow.
Higher labor costs push parts production overseas, but tariffs and shipping delays have turned offshoring into a financial snare. Producing domestically is cost‑prohibitive but importing carries penalties and logistical headaches. Tariffs on auto components and essential materials to produce them have reshaped supply chains and added complexity to sourcing strategies.
Additionally, consumer focus on maintenance, which spiked during the stay-at-home phase of the pandemic, has waned in the post-COVID era. With many opting to lease or replace vehicles rather than invest in routine or non‑essential repairs, aftermarket activity has become more erratic and unpredictable.
Amid thin margins and unpredictable sales cycles, aftermarket suppliers need financial flexibility to withstand shocks and seize new opportunities.
Liquidity is the lever for resilience and growth
Access to working capital allows businesses the ability to act on opportunity, not just react to pressure. Reliable liquidity helps manufacturers purchase inventory, secure materials in advance, and meet larger orders without taking on traditional debt. It also helps improve cash flow stability, reducing the risk of production delays or missed sales due to limited capital availability.
With the right financing in place, companies can negotiate better supplier terms and offer more competitive payment options to customers.
How Raistone helps auto suppliers stay competitive
Raistone provides working capital solutions that help auto suppliers unlock cash from outstanding invoices, avoid the constraints of traditional lending, and stay resilient in today’s unpredictable global market. By supporting both domestic and international suppliers, Raistone enables companies to strengthen cash flow, manage risk, and fuel growth.
Case Study: From 270-day terms to $296M in liquidity
A $300 million revenue auto parts manufacturer was caught between customers requesting 270+ day payment terms and suppliers requiring payment in 60 days. Raistone stepped in, accelerating receivables to 30 days through an ARF program and extending payables to 240 days via supply chain finance.
In total, the company unlocked $296 million from its balance sheet without taking on additional debt, giving management the flexibility to grow, invest in capital expenditures, reduce liabilities, return capital to shareholders, pursue acquisitions, and more.
Shift your cash flow into high gear
With the right financing solution, your business can overcome liquidity challenges and stay ahead in a competitive market. Suppliers of OEM components and sub-assemblies alike turn to our solutions to improve balance sheet health, reduce reliance on traditional lending, and strengthen relationships throughout the supply chain.
Unlock stronger cash flow and open new opportunities for your business by working with our team of financial experts, giving you the freedom to operate proactively instead of reactively. To learn how Raistone can help you transform your receivables into working capital without incurring debt, call 888-626-6593 or fill out this form.
About the author
Sean Makar serves as an Associate on the Sales team at Raistone. He manages ARF programs across a wide portfolio of clients, is responsible for onboarding new clients, as well as growing and maintaining existing relationships. With a strong focus on delivering tailored working capital solutions, Sean plays a key role in helping businesses unlock liquidity and scale with confidence. Sean earned his BA in economics from Binghamton University and MBA, with a concentration in finance, from Mercy University.
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