Web-Est, LLC, recently completed a survey asking small collision
repair shops what they thought about the governments "Cash for
Clunkers" program. The results provided some interesting views of
how the industry might be affected. "Now that our government has
spent $2.6 billion to help car makers, the results are now in; just
under 700,000 new vehicles are on the road. We thought this would
be a good time to ask our customers what they think," said Eric
Seidel, President/CEO of Web-Est, LLC. "While most feel it's too
early to see any meaningful change, the feedback offers a range of
thoughts on the subject." Seidel continued.
William Jeans, AOL Autos Editor-at-Large recently wrote an
article entitled "Cash
for Clunkers Buyers Suffer Buyer's Remorse, Won't Save Fuel"
making the point vehicle owners drive more when they own a new car
verses an old clunker. "(The pollsters) surveyed drivers involved
in the purchase of the first 239,000 C4C ("C4C" is the name of the
Federal Program") vehicles," says Mr. Jeans. "The average intended
annual mileage was 10,894, up from the actual clunker mileage of
6,162. For those of you without a calculator falling readily to
hand, that's nearly double."
Mr. Seidel says that from the collision repair industry
standpoint, "the AOL survey results are good news: the more the
public drives, the more collisions there are to be repaired." He
goes on by noting that it's important for repair shops to be up on
the latest and greatest manufactures repair requirements.
Additionally, the newer the vehicle, and normally the higher the
average repair price.... which is more good news. The bad news? All
of us tax payers are paying for that nice new shiny car parked in
your neighbor's yard, but smile, they made need it fixed soon.
Please see the results below:How many employees does your shop
currently employ?
1) 19.10%
2) 26.97%
3) 20.22%
4) 19.10%
5) 5.62%
6) 2.25%
Other 6.74%
Do you think the "Cash for Clunkers" program will help your
business or hurt your business?
Help 14.56%
Hurt 35.92%
No effect 38.83%
No Opinion 10.68%
Some of the feedback included comments such as:
"Newer car, forced to have full coverage, they have to fix it or
be liable to the bank."
"The program kept people from fixing the older cars."
"No one spends money to repair 'clunkers'."
"People are going to replace their cars regardless of the
program. As long as they are driving something our business
shouldn't be affected."
