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Reported by: Chris Grogan Thursday, Nov 6, 2008 @08:48pm CST (Springfield, MO) -- The past few months have been bad for many industries. That's especially true for those who sell cars and trucks. The reports are ominous. Car sales fell to the lowest levels in 25 years last month. The industry is in turmoil with layoffs at major American car manufacturers. But one part of the auto industry is booming. Things are looking up at Rick's Automotive. In fact, October ushered in a record any business would be proud of these days. "We actually did. I'm a little bit embarrassed to say, because a lot of my business friends, it hasn't been that way. But we actually had a record month in October and we're going to end with a record year this year. And that's a lot to do with the fact that people are repairing them, instead of buying new ones." explains Rick Hughlett, owner of Rick's Automotive. And they're not just fixing them. Technicians say more drivers seem to be paying a lot more attention to preventative maintenance. That's a big change from just a few years ago, when credit and rebates flowed from car dealerships. "If it needed $300, $400, $500 worth of repairs, they said well I'm just gonna go buy a new one, and it was actually easier to get financing to buy the new car, then repair the one they have." says Hughlett. Now, many dealers are struggling to move vehicles, with some finance companies like GMAC refusing to give a loan to anyone with a credit score under 700. That cuts out 42 percent of this country's consumers. And it's not just the repair bays bringing in the bucks. Those who sell the car parts are also feeling this trickle-down benefit. "A lot of people are mechanically inclined, and they'll take on a job where they wouldn't used to." says Steve Barnett, O'Reilly Auto Parts. His O'Reilly's store has seen sales rise for the past few months over last year's numbers. And in this economy, that's something to take stock of. "We've never had to lay people off, and hopefully we won't ever." says Barnett. All of this is a big change from the last economic downturn in 2001. You may recall that so many manufacturers and dealers were offering rebates, that in some respects a lot of people figured it was easier just to buy a new vehicle rather than fixing their old one. But the credit crunch means things are different this time. Also a lot of cars that were bought in 2001 are coming off warranty these days and that's also helping out independent shops that do maintenance and other work. |