Fresnans repair, rather than replace, consumer goods

Published online on Thursday, Aug. 27, 2009

With money tighter than ever, many people would rather fix than replace their cars, washing machines or stoves. And that has kept some repair shops in business through the recession.

The Fresno Foreign Automotive Center in downtown Fresno, for instance, is replacing the engine in a 1999 Saturn for a customer who preferred not to buy a new car for his son, said shop owner Paul Schlichting.

Work like that has kept the repair shop bustling.

"They know a new car is still expensive, even with the Cash for Clunkers," he said. "It just seems like they want to keep them longer."

Not all repair businesses are seeing a benefit, in part because some people are too broke even to afford repairs.

But many have done well in a time when other small businesses are closing in droves, said Angie Wilson, vice president of marketing and communications for the Automotive Service Association, a trade organization.

An association survey found 60% of repair shops said their sales in 2008 - during the height of the recession - were better than in 2007.

Drivers are keeping passenger cars longer than ever - 9.4 years in 2008, compared with 8.3 in 2001, according to Michigan-based research firm R.L. Polk & Co. "Overall, that's good for the automotive-repairs industry," Wilson said.

Shirley Lindsay, co-owner of Lamona Service Center in Fresno, has seen the trend before - during every economic downturn in the 26 years she's worked in the industry. Customers keeping their cars "are more conscientious about preventative maintenance," she said.

Mike Giusti of Fresno is one of those drivers.

Giusti, 39, is six months away from paying off his 1992 Hyundai Santa Fe SUV. Once he would have bought a new vehicle. But he decided recently to spend about $1,000 to replace the timing belt and water pump and make other repairs.

"It just made more sense financially to do it that way," he said. "Being debt-free is the goal. Why would I start all over again with a new car payment?"

Not every repair shop is bustling with customers. Business has slipped at the Madera Auto Center's service department, said owner Marty Mayfohrt.

Some drivers can't even afford routine service and are actually waiting longer between oil changes and skipping things like transmission and fuel-injection flushes, he said.

"I think people are waiting to repair their cars until there's a catastrophic event," he said.

When it comes to refrigerators and washing machines, more people are calling for repairs than in previous years at Andy's Appliances, at Maple Avenue and Kings Canyon Road in Fresno, said Juan Ruvalcaba, whose father owns the business.

"It's hard times right now," he said. "They'd rather get it fixed."

Repairs on a washer cost up to $120, he said, and a new one will cost $300 or more, he said.

But that's not the case with every customer, said Dave Deprospero, owner of Authorized Appliance Service in Fresno.

Some customers with enough money to buy new are doing so, particularly when it comes to high-tech washers. Their circuit boards, for example, cost between $150 and $325 to fix, so buying a new one isn't that much more expensive than fixing it, he said.

"People's philosophy is, it's better to buy a new one for another $200 and get the new warranty," he said.

The decision all depends upon the person's individual financial situation. And every business will have a different experience, said Wilson of the Automotive Service Association.

But she said one thing is certain during a recession: "People are being very cautious with how they spend their dollars."