As new cars sales continue to slump in the recession, some dealer service departments and auto repair shops are seeing an increase in business in 2010. Bobby Irby, general manager of Memphis Auto Repair Service says, "A lot of people now are fixing (older cars) up rather than buying new vehicles."
Conventional wisdom has always said that the auto repair business is "recession-proof". Independent mechanics surveyed by the Automotive Service Association reported business up in 2009 over 2008. 76% expect more work in the recession. When someone is faced with a $1000 auto repair, they previously may have decided to trade the car. But now with budgets getting tighter and tighter, they just bite the bullet and do the repair. On the downside, there are also people who, when faced with that kind of bill, just turn to public transportation. There are a lot of people out there with cars just sitting in the driveway.
"People are hanging on to them right now, and they've got to keep them running," says Tim Smith of Bob Smith BMW/Mini in Calabasas, Calif. The median age for cars in 2008 was 9.4 years. Another problem is that may people are "upside-down" or "underwater" as the expression goes.
At RFI, Inc., we supply rags for the auto repair, auto body, and auto detailing industries. While the recession affects all of us, the recycled textile business remains steady and strong. We look forward to a great 2010.
Sources:
Commercial Appeal
The Early Show
Marta,
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Dan Sweet
Sales Representative
Thanks Dan for your call. We will keep you in mind for any future needs.
ReplyDelete