|
(401)828-4545
(401)316-1998
(401)316-1994
|
MainSales@MainStreetAutos.com
Ask the Experts > Main Street Motors interview with Keith Griffin
Shane @ Main Street Motors:
What do you think of the current used car industry?
Keith Griffin:
It’s in a difficult spot right now because people don’t want to spend
money. This is probably a great time to own an auto repair facility
because folks are holding on to their cars longer. Also, the competition
for quality used cars is becoming intense as new car dealers realize they
are going to have to bolster used car sales to keep the lights on.
Shane @ Main Street Motors:
When do you think the used car industry will get out of this current
economic funk we seem to be in?
Keith Griffin:
I expect the funk to end about three-six months after the recession ends.
Some experts think the recession will end by the end of 2009, so maybe by
June 2010 we will see our way out of this funk. We have to see incomes
rising among the lower and middle class before we can expect to see an
increase in used car sales, especially from dealers.
Shane @ Main Street Motors:
Do you believe the "Cash for Clunkers" bill will be a success?
Keith Griffin:
No, Cash for Clunkers will not be a success. At the most, it’s going to
increase new car sales by about 3%. I just can’t believe that is going to
have a major impact on new car sales for the giants like GM or Ford. For
this program to make an impact, all of the sales would have to be Suzukis
or other desperately struggling manufacturers like that. Plus, the
environmental impact is going to be nil. There are something like 40
million used car transactions a year – Cash for Clunkers is only .5% of
that total. It’s not going to clean the air appreciably.
Shane @ Main Street Motors:
Do you believe the bill will hurt the supply of used cars and used car
dealers in years to come?
Keith Griffin:
There will be a short-term affect on supply, but most used car dealers
aren’t making profits off cars selling for less than $4500 or even $3500.
Sadly, what’s going to happen for consumers is less than credible dealers
will attempt to increase prices on older models with the argument that
their supply has diminished. By this time next year there will be no
appreciable residue from Cash for Clunkers (except for the additional $1
billion to the federal deficit).
Shane @ Main Street Motors:
When do you believe the sale for used cars will increase?
Keith Griffin:
I think by June 2010 we will start to see a marked increase in used car
sales. It is going to follow the new car market. People having been
waiting to buy used and new cars. They’ll be seek of waiting and we should
see demonstrable growth.
Shane @ Main Street Motors:
Where do you see the independent used car dealer ten years from now?
Keith Griffin:
It all depends. The independent used car dealer is feeling a lot of
pressure right now (as are the big used car dealers like CarMax). What’s
going to happen in 10 years is the strong, consumer-oriented independent
dealers will be thriving but there will be fewer of them. I think new car
dealers with certified pre-owned programs heavily backed by manufacturers
are going to put a lot of independent used car dealers out of business in
10 year’s time – and that’s a bad thing. That will only make it more
difficult for folks with lower incomes and subprime credit to buy good
used cars. So, looking into my crystal ball, I see fewer independent used
car dealers, but the ones that are surviving will be in a better financial
place, especially if they focus on customer service and not just making a
buck.
Shane @ Main Street Motors:
Thanks Keith.
If anyone has any questions or comments please email me. I will post them on site. E-Mail @ MainSales@MainStreetAutos.com
Keith Griffin Blog
http://usedcars.about.com/b/
Keith Griffin Bio
http://usedcars.about.com/bio/Keith-Griffin-42681.htm
|
