Like many drivers, Fletcher scaled back his automotive aspirations because of the economic downturn. "My portfolio lost about 40% last year, so I’m certainly in no mood to buy a new car," says the retired sales and marketing executive from Pinehurst, N.C. To that end, he’s making a point of changing his oil and other fluids regularly and keeping his tires properly inflated to help them last longer.
Until recently, many drivers treated their cars less like transportation and more like handbags, jewelry and other trendy accessories. Drivers craving the latest in mechanical "bling" found easy credit and inexpensive lease deals attractive enough to get a new ride every three years or so.
Today, the scarcity of attractive terms for financing and leasing means that many people are keeping the cars they have. As a result, car dealerships are quiet while service shops buzz.
"The three-year ownership mentality has crumbled," says Trevor Traina, founder of DriverSide, a Web site that helps people keep up with car maintenance and avoid overpaying for repairs. As new-car sales declined sharply, several sites like DriverSide and RepairPal have cropped up to cater to drivers who are keeping their old cars in shape instead of buying new ones.
Sales are up 10% from this time a year ago at Wagenwerx Inc., an independent Volkswagen specialist in Wyndmoor, Pa., says owner Howard Pitkow. Though he isn’t seeing a big increase in the number of customers, he says orders are more complex, with some bills up 25% to 50%.
"People aren’t jumping to get a brand new car," he says. "They want to keep what they have. It’s worth it to them to maintain it." Pitkow says business began increasing around the time of the presidential election. "Since then it’s really been going crazy," he says. "Some need $1,500 worth of repairs or more, and when we give the customer the bill, they say go ahead and do it," he says.
"Overall, our members have reported an increase in customer count," says Angie Wilson, vice president of marketing and communications for the Automotive Service Association, a trade group based in Bedford, Texas. "People are coming in wanting repairs."
The average trade-in age for cars has crept upward to 6.2 years in October, up from 5.8 years in October 2007, according to auto industry researcher J.D. Power & Associates. Keeping a car longer usually works for owners because cars last longer and are more reliable than ever.
But the change is chilling for a U.S. auto industry accustomed to cranking out more than 15 million new vehicles a year. Light-vehicle sales fell 18% last year to 13.2 million units, the lowest since 1983. Today, showroom traffic continues to dwindle.
While many in the industry predict a return of demand for new vehicles within a year, others detect a deeper shift in consumer attitudes. John Wolkonowicz, an analyst with IHS Global Insight in Lexington, Mass., acknowledges that U.S. drivers have a proclivity for big, new flashy vehicles. But that could change for good in a drawn-out recession. If the downturn lasts another year or two, he says, a "new frugality" could take hold that would include longer-term car ownership and disdain for pricey new models.
Charles Eisenson, a retired dentist from St. James, N.Y., says he considered a number of fuel-efficient new vehicles to replace his family’s 2004 Cadillac Escalade SUV. But watching his wealth shrink in the past few months while fuel prices have dropped heightened his sense of financial vulnerability. "We decided to wait," he says.
Buying the Warranty
Instead, Dr. Eisenson says he’ll keep the SUV a model that typically gets 12 miles per gallon and buy a three- or four-year extended warranty for it.
An extended warranty which can cost $4,000 or more along with the cost of more-frequent oil changes and replacement parts, still usually costs less than the monthly expense of financing or leasing a new car. And because modern cars are more durable than ever, they generally require less maintenance to stay in good shape.
Changing the engine oil regularly is still the most important step toward keeping a car healthy. The interval for this varies widely from car to car. Most vehicles can go 5,000 to 7,500 miles between oil changes. Some models that come from the factory with synthetic engine oil can travel up to 15,000 miles between changes. However, many drivers stick with the longstanding some say outdated schedule of changing every 3,000 miles.
Even car makers are getting involved. Daimler AG’s Mercedes-Benz brand last year began selling insurance for wheel and tire replacement, in part because drivers are keeping their cars longer. Last month, the carmaker expanded the program to include cosmetic paint and body damage.
Drivers say rolling up the miles in an aging vehicle has its down side, even when the car is basically reliable. Parts eventually wear out, and the driver’s sense of security often wears thin.
"There are so many little things that can go wrong," says Marcelle Wellington, who works for a market research company in Bellevue, Wash. Replacing a cracked headlight lens on her hazelnut-colored 2003 Saab convertible cost $250, and other small fixes can be surprisingly expensive.
It’s also difficult to get over one’s desire for something new. Ms. Wellington admits that she’d prefer to drive a newer car, but a slump in the used-car market means she’d get little if she traded in the Saab. Overall, keeping it makes better financial sense.
That doesn’t keep her from dreaming about a new Audi A4, which she says is more stylish and has technological and comfort features that weren’t available when her old car was built.
"The Saab has been a good, reliable car, but I really miss having the latest gadgets," she says. (Tire Review/Akron)