Economic downturn has drivers repairing older vehicles

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Release date: August 20, 2008  /  Print This     RSS    

Today's economy is like a perfect storm - sky-high fuel prices, rising unemployment, inflation, slumping housing prices, you name it. And the economy is definitely having an impact on the automobile industry. To save money, more people are repairing older vehicles instead of purchasing new ones, noted KPHO TV in Phoenix. (Please click on the links at right.)

"It can make more financial sense to restore an older vehicle instead of having to worry about expensive monthly car payments," says Maaco President David Lapps. "Many people have felt the effects of the economic downturn and are making changes in their buying habits so they can hold on to more of their money. When they compare the costs of buying a new car and restoring an old one, they see a big difference."

In a recent Associated Press article, experts discussed how the current economy has changed the shopping habits of Americans. The article noted how experts see that the "the new behavior – fueled by higher gas and food prices, tightening credit and a slumping housing market – is the most dramatic and widespread that they have seen since the mid-1970s." The report later references a study conducted by market research company Nielsen Co. that showed two-thirds of consumers are cutting spending because of the rise in gas prices, an increase of 18 points since last year.

Maaco has close to 500 locations that provide auto painting and body repair services for over 12,000 vehicles a week, 700,000 a year, more than any other company in North America. Maaco franchisees understand customer frustration with the status of the current economy, Lapps said, and are able to help them save money when it comes to their vehicles.

"We can help keep a vehicle looking great so that owners can keep more of their hard-earned money," Lapps said. "Vehicles are built much better and are lasting longer these days. More older vehicles are mechanically sound and just need a little body and paint work to restore the 'new car' feeling.”