The Economic Downturn: A Look on the Bright Side

In a recent article published on CNN, a possible silver lining has emerged from our national economic crisis.  With citizens losing money and faith in their economy, they have become much more frugal with their money.  Customers are less willing to pay large amounts of money for a new car, opting instead to keep their old ones.  This means that the large automakers have had major drops in sales that they are trying to remedy with new models.  And because most people have stopped going to the dealer to keep their cars running longer, automotive repair shops have seen their business increase since the downturn.

According to the Automotive Service Association, "their members' sales were up 16 percent over the last year" (CNN, "US Car Repair Shops Getting Milage out of Thriftier Times").  This means that more people are looking to mechanics and auto-parts stores for their repairs, rather than relying on the dealership.

Prices at the dealer are often higher than most outside sources, because they charge for conveniences, for reliability and for a guarantee of their service.  However, other mechanics are able to offer many of those same perks, at a much lower price.  Also, the parts are typically purchased for a lower price, resulting in a lesser cost overall for the customer.

Just as people like to bargain shop for groceries and other necessities, they are bargain shopping for their auto repairs.  This may not be the desired outcome for the automakers or dealers, but the small businesses that have seen their business grow are loving the shift in trend.  Most people are worried about the security of small businesses in a downturn, but as this instance shows, businesses in the right industry can prosper.