Recapping a lunch conversation from earlier this week…
Right now I’m driving a 10-year-old car. I like it, it runs well, and my ego doesn’t need to buy or lease a new car every 3-4 years. But every time I take it in for an oil change or minor service, I end up spending more than planned. I’ll bet my friends at Jiffy Lube and Pep Boys are much more excited to see old cars like mine than new cars where the belts and hoses aren’t worn out, the fluid levels are topped off, the wiper blades are smooth, tire treads are deep, etc.
After a decade of easy credit, consumer spending will remain soft indefinitely. Savings will continue to be a priority over spending. Many consumers will maintain and repair their durable goods whenever practical, and replace only when necessary. This mindset will apply to automobiles, homes, appliances, furniture, clothing and other areas.
Broadly speaking, after-market businesses will present strong opportunities. Enterprises that sell after-market parts, or service, maintain, repair, remanufacture, refurbish, or re-anything for durable goods should be promising.
Would like to make this a longer post, but need to find a place to get some furniture re-upholstered.