GRAND RAPIDS (WZZM) - "Yeah, our business is off just like almost everyone else's," says Bob Souter of Souter Auto Parts, a salvage yard located on Old Alpine Avenue.
The business of cars is hurting at many different levels, from the assembly lines at General Motors and Chrysler, to the salvage yards here in West Michigan.
We've all heard how new car sales are down and the big 3 are struggling. But, does that mean more cars are being repaired?
It stands to reason that if fewer people are buying new cars, more people need to get older cars fixed. Business owners say that's true, to a point.
Veenstra's Garage on Fulton in Grand Rapids opened in 1925 and has survived economic downturns before. Third generation owner Mike Veenstra says, "Business is all right. We're in a down economy. But, we're doing all right."
Veenstra says fewer cars are coming in for repairs, but the money coming in is steady. He explains, "My sales are not decreasing. They're staying about the same. So, that tells me that people are spending more on cars."
He says people are doing more big ticket repairs. He compares, "There's been years when you had the big three offering the low interest loans. So then it didn't take near as much for people to say, 'I'm not going to spend that on my car, I'm just going to go trade it in'."
Some customers at Veenstra's are opting for the bare minimum repairs. The shop even offers less expensive parts for people who need to do the repairs, but can't spend a lot.
Others are opting for used parts. Business is changing with the economy at Souter Auto Parts too. Bob Souter's father opened the business in 1962. Bob Souter says, "In 47 years, I've got to say, this is probably the toughest I've seen."
Souter gets a lot of inquiries about used parts, but he says, "They come in and buy just what they need. If they need a tire or a battery or a starter or a transmission they'll buy that but they won't buy the fender if it's caved in or the door. They're just buying the bare necessities to get by with."
It's also more expensive for Souter to buy wrecked cars. He explains, "There's fewer of them these days because people are traveling less because of the price of gas and because of the economy. So, there's not as many salvaged cars out there to buy."
But, despite it all, Souter says, "We'll survive. We've been here a long time and the place is paid for so we don't have a lot of overhead. Thank God for that."
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