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End of the road comes later for cars
Economy, improved quality keeps vehicles on the road longer


The Atlanta Journal-Constitution
Published on: 04/09/08

Call car repair shops and each one has another story about the economy's impact on their business.

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Joey Ivansco/AJC
Dave Brinkley, a technician at Layfield Motors in Atlanta, uses a diagnostic tool to help determine a problem on a 1998 Plymouth Breeze in for repair. Americans are keeping cars longer than ever-- 9.2 years on average-- so that means many drivers are often more open to having big car repairs completed rather than trading in for a new or newer car.
 

An Atlanta shop supervisor says people are writing bigger checks for car repairs to stave off buying a new vehicle. A Hampton service manager says people are trying to save money by having used engines and transmissions installed — even against his advice. A Marietta shop owner says people are putting off needed repairs until their vehicles are not drivable.

All three see one standard: Drivers are hanging on to their cars longer.

The figures bear them out. The median age of passenger cars on American roads last year was 9.2 years, nearly a year older than the 8.3 years seen in 2001, according to the automotive consulting firm R.L. Polk & Co. The median age of light trucks in 2007 increased to 7.1 years, a year older than the 6.1 seen in 2001.

There are several reasons America's fleet of 248 million vehicles is aging, said Chuck Parker, publisher of Automotive Digest, an online trade publication.

First, cars last longer, he said. Engines are better built and more efficient. More people are buying used cars because they are more sound than in the past. Then there's the economy.

"Buying a vehicle because it looks good is less and less of a reason," Parker said. "People are looking for utility, for cars to last. People are fighting to keep their kids in school and pay their mortgage."

He estimates there will be about 15 million new vehicles sold in the U.S. this year,

1 million fewer than last year.

The benefactors of the trend "are the local, independent Joes, the car repair shops on the street," Parker said.

Nap Mack, a shop supervisor at Layfield Motors in downtown Atlanta, has seen cars get older during his 35 years at the business.

"People used to get rid of their cars at 100,000 miles, but we're seeing them keeping them for 120,000, 130,000, 140,000 and more," he said. "They're keeping closer track [of maintenance] because they know they're going to keep them longer."

Mack said car owners increasingly are deciding to make big repairs like engine and transmission replacements to forestall having to buy a new car.

Experts say there is no easy equation for deciding the cost of yet another repair vs. car payments of a new car. It's simply a calculation each driver must at one point make.

"The depreciation of a vehicle, even with high gas prices, is the highest cost of operating a vehicle," said Tom Webb, chief economist for Atlanta-based Manheim, the world's largest wholesale vehicle auction firm. (Manheim, like The Atlanta Journal-Constitution, is owned by Cox Enterprises.)

Shane Mitchell, service manager for Russel's Automotive in Hampton, said some owners are choosing to make repairs that cost more than the vehicle is worth.

"If you like the car and trust the car, you're good to [repair] and keep the car," he said. "If you have a car worth $3,000 and have a bad transmission, you have a $200 car. Sometimes [fixing the vehicle] is the best of two evils."

"The biggest thing I've seen is people don't have the money for good products," Mitchell said. "We put in more used stuff the last year than ever, even though I advise against it. But with people's credit hurting, they don't have a choice."

Jesse Day, owner of Day Brothers Automotive near the Big Chicken in Marietta, said business has fallen off the past six months to "slower than I've ever seen it. I guess [customers] are taking care of the emergencies and that's it."

Parker, from Automotive Digest, said car dealerships are cluing in on the changes in the buying public.

In past years, dealerships made much of their profit from financing and selling insurance for new cars. Today, "the two parts of the dealership benefiting are the pre-owned area and the service shop."

Terry Cullen, owner of a Chevrolet dealership in Jonesboro, agreed, saying the dealership's used vehicle lot, parts department, body shop and repair center all must pick up the slack.

"People are uncertain about their jobs, so they'll put off big purchases," Cullen said. "In the past, people would say, 'I'm tired of fixing it. I'm buying a new car.' Now, they'll fix it one more time."

Mike Hardy, whose family sells Chevrolets, Buicks and Pontiacs in Dallas, said the repair shop and "pre-owned lot" are helping keep the business afloat until new car sales improve.

"We've been on this roller coaster before," said Hardy, who added that there are worse industries to be in these days. "We're not in the boat business with the drought or in the house-building business."

'I'LL KEEP THE JUNKER'

Carmakers announced a drop in sales from the previous March

• General Motors and Chrysler, down 19 percent

• Ford, down 10 percent

• Toyota, down 10 percent

• Nissan, down 4 percent

• Honda, down 3 percent

Source: AP

• About a third of 1966 models were still rolling 13 years later.

• But two-thirds of 1996 models were on the road 13 years later.

Source: Tom Webb, Manheim

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Comments

By Christopher

Sep 7, 2008 9:20 AM | Link to this

It costs about $350/year on average to keep my 1989 Honda Civic, base model wagon (106,000 miles) on the road. It religiously gets 30-34 mpg, and I use Wal-Mart brand oil and filters (do all my own maintenance) to change the oil every 4000-5000 miles. It's needed a new clutch, brakes, starter, ball joints, muffler -- about what I'd expect over 19 years. My power-nothing, also-cheapest model, 2003 Toyota Corolla CE (32 - 40 mpg) is the best car I've ever owned. At 53,000 miles, it's been running like a sewing machine, and for the $13,787 drive-off price that I paid back in 10/02 (when I bought it brand new, to drive home from Atlanta after a drunk wiped my other Honda out), it's been the best auto-buy, too, because reliability is right up there with gas mileage as the number one feature that drives my car-buying decisions (right, it's an appliance, I don't care what it looks like). Even at that, Toyota threw in a nice stereo AM-FM cassette and CD deck, a clock and powered, dual-mirrors. If only Detroit would just copy them so I can buy American the next time around.... Anyway, I'm gonna milk these babies until the Chevy Volt (or equivalent) is sold at $15,000 or less (the Indians, probably via Tata Motors, will probably beat Detroit to the punch). "Freedom Cars" (first 40 miles runs on electricity that I'll be able to generate -- FREE of Georgia Power -- from my roof's solar panels, thus I'll commute every day for FREE and pollution-free) will be the next wave, and only then will millions dump their oil-burning heaps for an upgrade. Historians thus will look back on $4/gallon gas and the thrift-restoring values of this latest recession as a net benefit (Americans waste; latest oil-consumption data demonstrates that their behavior will only be altered through financial pain, and not out of any sense of virtue).

By James

Aug 27, 2008 10:11 AM | Link to this

I still drive my 91 Honda Accord with over 400,000 miles on it stil running great keep good car of it! Do the normal changes but still runs great! KNOCK ON WOOD! Hope to get to a million! 550 miles to work a week

By James

Aug 27, 2008 10:09 AM | Link to this

I still drive my 91 Honda Accord with over 400,000 miles on it stil running great keep good car of it! Do the normal changes but still runs great! KNOCK ON WOOD! Hope to get to a million! 550 miles to work a week

By bobby dee

Aug 27, 2008 12:34 AM | Link to this

Buy them new. Change the oil & keep 'em clean. I still have the 79 Z-28.

By knegpduqx acqsgmwj

Jul 21, 2008 8:15 AM | Link to this

krfbtcyoe astmrn okgvqjx efqkh nquzem mfjkw mojyhvgex

By knegpduqx acqsgmwj

Jul 21, 2008 8:14 AM | Link to this

krfbtcyoe astmrn okgvqjx efqkh nquzem mfjkw mojyhvgex

By A.S.Mathew

Jul 11, 2008 8:51 AM | Link to this

Keeping an old car running farther is
the best economic decision of this critical economic havoc. I am driving a
1995 BMW, gets 22.8 miles average, has
219000 miles, still running good. Hope
and trust in the Lord that it will make
over 300000 miles, then keep it as a
personal collection.

By dfkhltnw ykjzb

Jun 19, 2008 6:07 AM | Link to this

zytscqm wjzfemd doxm yzmkbfqwp xbmerayup xtovnzu deymkl

By dfkhltnw ykjzb

Jun 19, 2008 6:06 AM | Link to this

zytscqm wjzfemd doxm yzmkbfqwp xbmerayup xtovnzu deymkl

By Nick Kinslow

Apr 28, 2008 10:15 AM | Link to this

I am still hanging on to my 1997 Ford F150. I have had it for nine years and its got 243,000 miles on it. It has never had any engine or transmission problems. I am going to keep as long as I can.

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