What’s true within the United States is not always true in Canada. However, this is not the case when it comes to the recent economic recession. This economic downtown is worldwide, which makes economic news in the United States the same (if not similar) to the events happen in Canada. According to a recent U.S. based survey prompted by AAMCO, more consumers are neglecting to purchase new cars. Instead, consumers are attempting to save money by repairing aging cars.
Mike Ganjei (AAMCO Dealers Association) recently stated (based on the AAMCO study findings) that “consumers clearly prefer maintaining and repairing their cars rather than buying new ones” (Reuters). Making necessary adjustments to existing automobiles makes a lot of sense during these dire times. Canadian consumers are following suit by bringing cars to repair centers rather than purchasing new ones.
Garages have seen a rise in business over the past few months due to this car repair phenomenon. In fact, the car repair business might be one of the few businesses that are “recession proof.” For most consumers, repairing an existing vehicle is a much better option (and much less of a monetary commitment) than purchasing a new one. The problem is that not all consumers can afford to repair their cars due to a lack of cash flow.
Add this cash flow problem to the fact that most people need their cars to get to and from work (or to look for new work), and the entire situation looks rather grim. The good news (as some consumers are now finding out) is that there’s a new kind of loan on the market that provides a bit of wiggle-room when it comes to car repairs. Some private lenders are issuing “car repair loans” that prove to be lifesaving in this economy.
Car repair loans do not require a spotless credit history, though they do often require car ownership. Those that can qualify for these loans are joining the ranks of those that have found car repairs to be a much wiser solution to an aging automobile problem. While “buying a new car is a major investment and perhaps not an option at this time for some consumers because of the troubled economy and uncertainty in the job market…” (Reuters), repairing one’s car is an all-around better option. Thanks to unique car repair loans, all consumers (no matter what their job situation might be) have a viable transportation option.