The Aftermarket

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.

Your thoughts?

One Response to The Aftermarket

  1. I also drive a 10 year-old car, and although I worry about it when driving more than a couple of hours, it just seems to make sense right now. Why lock-in to a long-term payment when the economy remains tight? We shouldn’t be penny-wise and pound foolish, but new “stuff” every 4 years just to make us feel good about ourselves is not right. I believe Americans are also getting more “greater good” conscience. Rather than buy the new car at $400 per month, save $300 and give $100 per month to the food kitchen. Reasonableness matters more than ever right now — and hopefully always will.

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