Monday 5 January 2009

Local Salvage Yards and Mechanics take a hit

Reporter: Auburn Hutton
Email Address: auburn.hutton@kolotv.com

The struggles of the automobile industry are having a trickle-down effect on other locally-owned businesses. Some auto salvage yards and mechanics say people are not only holding off on buying new cars, they're also refraining from fixing their old ones.

The owner of Mooney's Automotive on Rock Boulevard says lately, business depends on two things: gas prices and the stock market, both which are down right now.

He also says that when people lose their jobs, they don't drive as much, meaning their cars need less repairs. And the trickle down continues...the less repairs he does, the less parts he needs.

When even the junk yard is unaffordable, you know things are bad. The owner of family-run "D and D Dismantlers" says he made less money this month, than the same month ten years ago.

"We've actually had to unfortunately lay three people off in the last year. It's been getting slower and slower. The last six months have been really, really slow," said Tom Wiechers.

He says the price of scrap metal has nose dived, from $250 dollars a ton, to only $50 a ton...leaving his inventory piling up. Also, he says "recreational" customers who used to buy parts for their "fun cars" don't come around much anymore. Instead, it's people like Mark Stevens of Sparks, who are searching for a good deal.

Stevens says he's saved thousands of dollars over the years by plucking used parts off these junkers and doing the leg work himself.

"Tons. You can go to other junk yards and this yard and pull parts off that cost $200 to $300 new that might only cost $20," said Stevens.

Wiechers says his salvage yard could help people save money, but that promise is not enough to lure them in. He says unless there's a problem that's making a car un-driveable...many of them are just living with it.

"I need to keep my son's car running so I don't have to give him rides everywhere. It's worth it," said Stevens.

Wiechers says his friends at local mechanic shops are also struggling...some even forced to shut down. He says while winter storms and wrecks do help bring business in, it's only for a day or two...and not enough to make a difference.

"We keep thinking it'll turn around and people will start coming in and buying used instead of new stuff, but it hasn't quite happened yet," he said.

There is one good piece of news to report, and it's that you most likely won't have to wait long to get work done on your car these days. The owner of Mooney's says for the first time in years, he's not turning anyone down...even if he's busy.

The management at the "Pick and Pull" salvage yard in sparks say they're seeing a slight increase in business...mostly due to people who can't afford a new car, but don't mind dropping a few bucks for some old parts.


NEWS SOURCE

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