Story from the Wall Street Journal
The red 2002 Ford Thunderbird convertible sits in the back of the Wiygul Automotive Clinic in Alexandria, Va., as Kevin Coppedge works under the hood. It needs $3,363.99 of repairs -- more than one-third of its trade-in value.
At Autobahn Motor Works, some clients who might once have bought new cars are getting old ones fixed.In good times, owner Suzie Clayton probably would have sold the T-bird or traded it in for something new. "My husband talked about buying a new car," says Ms. Clayton, a co-owner of Dalton Brody Ltd., a high-end gift shop in Washington, D.C. "But I asked, did we really want the monthly payments for a new car? I own a business, and it's a little scary right now to spend a large amount of money on anything."
Economic fears are driving a resurgence for repairmen. When it comes to autos, computers and all kinds of appliances, consumers are more likely to repair what they have, rather than buying a new replacement, driving many to seek further education in the automotive repair fields. Current demand for repair and overhaul, and anticipated future demand for qualified green-technology automobiles are causing a spike in the need for certified auto mechanics and engineers of all types. Such University-level degrees as associates degree automotive, automotive service degree, and bachelors degree in heavy equipment, are increasingly popular.
At Daniel Hand's Computer Medics of Northern Virginia in Fredericksburg, work orders are stacked up on his desk. Two years ago, the repair estimates would have scared off his customers. "When people used to come around, if the cost was $300 to fix it and a new one was only $500 or $600, they'd typically get a new one," says Mr. Hand. Now, he says, "nine out of 10 times they come back and say, 'Fix it.' " His business's revenue is running about 30% higher now than a year ago.
Mr. Hand, who is president of the National Association of Computer Repair Business Owners, said the pattern he sees in his business is consistent across the industry.
Appliance-repair businesses, too, have seen an uptick in business in recent months, says Michael Donovan, president of National Appliance Service Association. Mr. Donovan has noticed a rise at his own business, Turnpike Appliance Service of Bay Shore, N.Y., in the past six months, even though the appliances he works on are not very expensive to buy new.
Repairs for Electric Razors
He and other business owners are surprised by the repair work people authorize these days. "Much to my amazement, people are spending $60 on repairing a vacuum that they bought for $100 new," he said, adding that limiting new purchases is "definitely a factor on everyone's mind." Mr. Donovan has even seen a rise in repairs of small home items, such as electric razors.
Cars, however, are the most visible signs of the new frugality, with new-vehicle sales down sharply. Opting to keep cars running, consumers are extending the lives of their vehicles to nearly 10 years on average from eight just two years ago, says the Automotive Services Association, a trade group for repair businesses.
At Autobahn Motor Works in Bethesda, Md., an affluent suburb of Washington, the mechanics who fix Audis, BMWs and Mercedes-Benzes say their customers fall into three groups: those who have always paid for repairs, those who would once have bought new cars but are now approving work, and those who are asking if work can be postponed.
An Imaginary Threshold
"I had a lot of customers who had an imaginary threshold. They'd say, 'I won't fix it, I'll unload it.' Those customers are rethinking that threshold and saying, 'Maybe I'd better take better care of my car,' " says service manager John McWilliams.
Zack Wiygul, who operates the shop where the Claytons brought their convertible, stayed on the phone with Ms. Clayton for 30 minutes explaining what it needed before she said, "Do the work. I'm not going to buy a new one."
"I'm having that conversation with somebody every day now," he says.
The situation is the same at Wiygul Automotive Clinic's three other shops in northern Virginia, says Bill Wiygul, Zack's father and a co-owner of the chain. "It's counter-cyclical," the elder Mr. Wiygul says. "If people aren't buying cars, they have to fix the ones they've got."
In the waiting room, customers come in throughout the day for everything from oil changes to major engine work. The work bays are full. Renee James, 42, is having her 2002 BMW prepared for a state safety inspection. Life is considerably different for her and her husband since she quit her six-figure job with a cosmetics company last fall.
'Not in the Budget'
"We've definitely changed our lives. In our 30s we were the folks who traded in cars regularly. We were compulsive traders," she says. "Now we baby our cars. I'm babying mine because it has to last. We cannot afford a car payment right now. It's not in the budget."
For Ms. James, the issue is preventive maintenance. While she once frowned at a $50 oil change, her new economic situation makes that oil change more palatable than risking bigger problems. "When you're young you balk at a $50 oil change, but you grow up and realize that a $50 oil change is cheaper than a $5,000 repair or $50,000" for a new car, she says.
John Kukar, 67, has a similar attitude. A retired insurance man and Air Force veteran, he has recently taken new interest in regular car checks for his 2003 Ford Taurus. "I can't afford to go out and buy a new car. I couldn't get one even if I wanted one," he says. "I don't have the credit for one."
