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Selling cars in a down economy

November 11, 2012
By MIKE REUTHER mreuther@sungazette.com , Williamsport Sun-Gazette

With the economy less than robust and unemployment remaining high, selling cars and trucks can pose its share of challenges.

But some automobile dealerships are even finding ways to turn profits.

"We've done well," said Carl Smith, sales manager of Bob McCormick Ford, Lock Haven. "It's better than last year as far as new retail sales."

Smith said manufacturer rebates are luring customers, many of whom arrive in the showroom with a good idea of what they are looking to buy.

"Customers are coming in well prepared," he said. "We strive to get that vehicle for them."

Smith said he's even had to hire extra people for his sales force to cope with the demand for vehicles.

Shawn Pequignot, of Pic Brothers, Muncy, described a less rosy picture.

"We are down a little bit from past years," he said. "I think it will pick up."

He expects many people who didn't make out quite as well as they had hoped a few years ago when they took advantage of the government's Cash for Clunkers program are already looking to buy another used vehicle.

He anticipates some of the those customers turning up after they receive their income tax rebates.

"I am stocking up right now with vehicles under $6,000. I look forward to a good 2013."

Bill Schneck, owner of Hulsizer Chevrolet Co., Montgomery, said new car sales are down and but used car sales are up.

"It's all relevant to the economy," he said.

Save for some periods of the past summer when things picked up, new car sales have been slow.

Schneck noted that it's unfortunate that many potential customers can't afford to buy new cars at a time when loan interest rates are so low.

Right now, he's selling about three used cars for every new car.

We are holding our own," he said. "We are very busy service wise. When you aren't selling (automobiles), people are getting their vehicles fixed."

Schneck said he's not real optimistic, given the outcome of the presidential election.

Dave Shirn Jr. of Shirn's Pontiac Cadillac GMC, Williamsport, said business has been "terrible."

"For personal-use vehicles, it's very slow," he said. "Nobody has any money. Banks are requiring 25 to 30 percent down."

The dealership used to employ about seven or eight salespersons, but is now down to three.

This is the worst I've seen it. And I've been in it 35 years," he said.

On the bright side, business in the service and parts departments has been extremely busy, he said.

Josh VanCampen of VanCampen Motors, Williamsport, had a different story to tell.

"I have been doing it for 12 years. Compared to three or four years ago, business is excellent," he said.

The dealership sells one new vehicle for every used vehicle it sells.

VanCampen claims banks are more willing to make loans than they were a few years ago.

"As long as you have average to good credit, you can buy what you want," he said.

And in such cases, the customer does not need to put down 25 percent of the vehicle's price to get that loan.

VanCampen claims the dealership is coping well in a down economy by providing good customer service.

"As far as Van Campen Motors goes, we got back to the basics - treating the customer right," he said.

 
 

 

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