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Posted

I would think if the economy improves, you would see more people buying new cars, not holding on to older cars that are in need of repair.... Just my thoughts.

 

Also can't help but wonder how the 'Cash for Clunkers' program affected the numbers in this study... I would think the average age would be higher since the gov't created an incentive for people to trade older cars (and subsequently destroyed and removed from the market) in for new ones.

Posted

Not sure what the real long term effect of that program will be, but here is some fairly detailed post regarding the program

http://blogs.cars.com/kickingtires/2011/10/cash-for-clunkers-two-years-later.html

imo, nothing that is artificially takes away and/or inserts something into economy can have any long term benefit, but I am not economist, just a regular Joe Schmo, what do I know. :unsure:

 

What I think I know, is that people are still going to buy new cars because they are shiny and well marketed and we buy on emotions not on logic. Some of them will default on their loans, but car is already in "circulation", so it will go to the auction and another "Joe Schmoe" will end up buying it. Depending on how many hands it will change the reliability of that specific car will be effected and so will our "opportunity" to see it in the shop.

I really wish there was some kind of generic chart, showing - "Buying a new car with payments vs keeping the older car with maintenance". But again, that's logic and people don't use it in general, especially when it comes to new and shiny things :)

Posted

...that's logic and people don't use it in general, especially when it comes to new and shiny things :)

Well said. A couple from our small group in church just traded in their two used cars for a brand new sedan and SUV right off the lot. They had very little logic behind the decision that didn't boil down to, "we were tired off looking poor and wanted pretty cars." They make $60k combined which does not go very far in Atlanta.

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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