People spend money at automotive repair shops vs buying new
Garages seem to be doing better than ever as they repair used vehicles for those who cannot afford to buy new ones. According to the Automotive Aftermarket Industry Association, which is a trade group for repair shops, in 2010, automotive repair shops garages in the United States reported $36 billion in sales, which is a 10.5 percent increase from 2007 when the economy wasn’t doing so badly. The estimations for 2011 are that repair shops will increase their sales from 2010 by an estimated 5 percent.
Ron Pyle, the president of the Automotive Service Association said in a statement: "There isn't any big mystery here; people are opting for something they think is less expensive than a new vehicle and relying more on their older vehicles."
Kathleen Schmatz, the president of the Automotive Aftermarket Industry Association shared that if the economy continues to stay on a bad path, independent repair shops may benefit. She said that unless things turn real terrible, then it will be bad for us all. In a statement, Schmatz said, “As long as it is just medium bad, it generally bodes pretty well for the repair shop.”
Doug Warner, who lives in the suburbs of Philadelphia, Pennsylvania owns a 1999 used car that he bought new. Warner stated, “I believe it is most cost effective to repair a car today rather than buy a new one, provided the car is worth fixing that is. We drive very few miles every year so we have low mileage on both vehicles, therefore it is much more cost effective to keep them rather than buy a new one. We just bought out the lease of our 2007 because it was much cheaper than buying a new one due to having to come up with a large amount of cash to put down and a high car payment.”
Bob C. who lives in the suburbs of Florida stated, “A friend once told me you either make the payments to the bank for a new car, or to the repair shop for an old car. Right now, I would have to evaluate the choices if I needed an expensive repair. Instead of buying a new car, I would probably have my old one fixed at a repair shop when the need arises.”
Overall, Americans are keeping their used vehicles for as long as possible rather than buying new ones, as it seems to make more sense to them with the tough economy. With purse strings tightening, it is more cost effective to repair used cars than to buy new, and this is where automotive repair shops are reaping the grand benefits.