Price, market forces drive benefits of current vehicle purchases
By
Jim Parker (
Contact)
The Post and Courier - Saturday, July 4, 2009
The decision to purchase a new truck, car, sport utility, crossover, minivan or whatever else is out there is a weighty one for just about anybody.
Granted, rappers, athletes, rich executives and lottery winners probably don’t fret too much.
Yet even President Obama thought twice about his vehicles of choice.
Having said that, auto industry observers note that it’s a good — no make that very good, maybe even great — time to buy a car.
Prices are attractive, companies offer rebates and other incentives, and manufacturers are eager to boost sales. Meanwhile, carmakers are introducing new perks from blind-spot warning devices for safety to high-tech audio systems to make the drive more enjoyable.
Dealers, too, are touting the today’s market. So, for the Fourth of July holiday, The Post and Courier asked local dealers five questions about the business: why it’s a good time to buy, what models are popular, how have industry changes affected the business, how strong is Charleston compared with other locales and an open-ended question for whatever else they want to note.
Here are the replies. The dealerships are listed in alphabetical order.
RICK HENDRICK CHEVROLETRick Pulcino, general managerWhy is this a good time to buy?Due to the soft economy, manufacturers are making incredible offers to incentivize customers to purchase a new vehicle. Especially with domestic vehicles, both the government and the manufacturers are under the spotlight to stimulate sales and create jobs. Look at the “Cash for Clunkers” bill that Obama just signed: consumers can receive up to $4,500 to purchase new cars that provide better fuel economy and lower emissions.
What is the best value — car, truck, SUV, specific brand?We believe Chevrolet offers the best value in the market today. Take for example the Tahoe Hybrid, which provides the same in-town mileage as the Toyota Camry. In a sedan, the Malibu won car of the year and provides gas mileage in the mid 30s. Chevrolet’s gas mileage is so good that even America’s sports car, the Corvette, gets 25 mpg. All of these vehicles, along with the rest of Chevrolet’s lineup, are backed with a 100,000-mile warranty.
How have the recent changes in the auto industry affected your dealership?This has caused a lot of uncertainty among dealers and the public. While we cannot control the ever-changing environment we find ourselves in, we can continue to provide the best environment for our customers. An example of this can be found in our service and collision centers.
We have more “world class” technicians, GM’s highest service certification, than any other dealership in South Carolina. Our collision center has some of the industry’s most advanced equipment and frame machines. Along with our highly trained and certified body technicians, we have the only certified Lexus and Corvette ZR-1 and Z-06 technicians in the Lowcountry. We also have the designation as being the only factory-authorized BMW repair shop in the state.
How does the greater Charleston market stack up against other places?Other dealerships have been laying off employees in reaction the market conditions. We at Rick Hendrick Chevrolet, along with the support of the Charleston market, have made the decision to retain all our employees, many who have been with us for over 10 years. This has helped us provide a real family atmosphere for both our employees and customers, which can be seen in our high customer-satisfaction scores in both sales and service. And when you take all this into consideration, you can see why we are consistently the largest volume Chevrolet store in the state of South Carolina.
BMW OF CHARLESTON
Brad Davis, president of Hendrick ImportsWhy is this a good time to buy?With an upswing in production prior to the BMW plants going on summer “holiday,” we have the best availability on BMW inventory and factory programs (like 1.9 percent financing), the likes of which we’ve never had before on BMW vehicles.
What is the best value — car, truck, SUV, specific brand? BMW has built value into every car with its free scheduled maintenance program, engineering superiority and incredible increases in fuel economy. This year, BMW has also added to its value lineup with the Efficient Dynamics clean diesels in both a car model and SUV.
How have the recent changes in the auto industry affected your dealership(s)?I think it has helped highlight the strength of a strong independent company like BMW.
How does the greater Charleston market stack up against other places?We’ve seen less of the big swings from boom to bust (such as in Atlanta) when we review regional sales numbers. BMW has very high customer loyalty (customers that repurchase another BMW), and Charleston is even stronger than most of the nation. In a slower market, a loyal customer base can be a life saver.
LEXUS OF CHARLESTON
David Yarborough, general managerWhy is this a good time to buy?
This is the best car market I think I’ve ever seen from a consumer’s standpoint. Interest rates have been discounted by the manufacturers and inventories are still good, but that will change in the future because production has been cut by all automakers. There are great deals today, but we all know what happens to prices when supplies are low.
What is the best value — car, truck, SUV, specific brand?
Lexus has always been a value story. We have the most luxury for the least money. Specifically, in a car it would be the ES 350. You can’t buy more car for the money. In an SUV, the 2010 RX 350 is the most popular vehicle in the crossover market, and more features have been added and the base price reduced.
How have the recent changes in the auto industry affected your dealership?
I believe that in times of trouble people turn to people and brands they trust. So, while the overall economy has hurt our new car business, we have not suffered as much as some others. Our Certified Pre-Owned car sales and our service business are better than they’ve ever been.
How does the greater Charleston market stack up against other places?
We are a unique market that is, among other things, real-estate driven. The downturn hit us the second week of July 2007 and long before some metro markets. As a matter of fact, many luxury dealers didn’t feel it until the stock market crashed in September ’08. I think the good news is that we will rebound quicker than some other markets because we live in one the most desirable cities in America, and people will continue to move here.
LONGSTREET CHEVROLET, KINGSTREE
Dave Fenters, ownerWhy is this a good time to buy?As a result of lower new car sales this has caused several reactions in the market ... (1) Fewer used car trade-ins. This has resulted in the values of your old cars to really increase. In fact the Black Book, a company who publishes used-car values, stated that more vehicles increased in value this month than ever in its history of collecting used-car values at local auto auctions. (2) New car dealers are more willing to deeply discount new vehicles to move inventory. (3) New “Cash-for-Clunkers” bill will give consumers that qualify up to $4,500 additional money to purchase a new car.
What is the best value — car, truck, SUV, specific brand?
All vehicles are deeply discounted and the best value must be determined by each individual’s needs and wants.
How have the recent changes in the auto industry affected your dealership(s)?After 38 years in this industry, I have seen many ups and downs but these changes will force each dealer and our dealership in particular to improve on customer service. We have looked at and will continue to look at better ways to become more efficient and expand our market share.
How does the greater Charleston market stack up against other places?Our dealership is unique in the fact that we are located just north of Charleston on Highway 52, east from the Myrtle Beach market and to the south of the Florence market. We have seen consumer demand has increased across all the markets with stronger demand from the beach and Charleston markets.
MARATHON CHEVROLET
Bill Walker, general managerWhy is this a good time to buy? Most manufacturers have a substantial amount of inventory and that helps increase rebates and interest subvention programs. The dealers also have heavy inventories and they obviously want to sell them to lower their costs.
What is the best value — car, truck, SUV, specific brand? I think you could ask this question to 20 different people and you would get 20 different answers. Trucks and SUVs seem to be keeping their value right now. Here at Marathon we are truly dedicated to our used-vehicle business. We give a two-year, 100,000-mile power train warranty with most of our vehicles at no cost to the consumer. I am not sold on any one brand and that is why I am excited about our pre-owned inventory and the opportunities it presents to us.
How have the recent changes in the auto industry affected your dealership(s)?
Not so far. We had the best month (June) in our history. I would attribute that to pre-owned sales, the service department, the parts department and last, but not least, the body shop. All of those departments have really come on strong for us in the last three to four months.
How does the greater Charleston market stack up against other places?I have been in the Atlanta, Dallas, Greenville and the Savannah markets. Charleston is by far the toughest market overall that I have been in. There are some good dealers here that really know this business and they have surrounded themselves with quality people that are doing a good job for them.
PALMETTO FORD LINCOLN MERCURY
Graham Eubank, presidentWhy is this a good time to buy?Probably the best reason to buy a vehicle now is the dramatic escalation in used-vehicle valuations. There is a major shortage caused by a lack of vehicles being traded. Also, the results of fewer leases being financed has reduced the off-lease fleet considerably. I don't know how long it will last, but the combination of extraordinary incentives and higher than usual used-vehicle values make this a great time to buy a new car or truck.
What is the best value — car, truck, SUV, specific brand?Tough question but the new 2009 Ford F150 carries the most discount and highest incentives while being a brand-new, fresh-off-the-drawing-board MotorTrend Truck of the Year. That sounds like value to me.
How have the recent changes in the auto industry affected your dealership(s)?Ford, Lincoln, Mercury, and Hyundai have pretty much stayed off the front page this year, so we’ve been under the radar and hope to stay that way. It is our hope that some folks that may have not shopped with us before will take another look at the incredible offering of products we have. For safety, technology, reliability, value, and warranty, we have an awesome lineup.
How does the greater Charleston market stack up against other places?The Charleston market has by and large been a reflection of the national situation. New vehicle registrations have declined in the 30 to 40 percent range all year. Of course, with 40 or so new car dealerships in the three-county market, you don't have to go far to find a good deal.
VOLVO OF CHARLESTON
Brad Davis, Hendrick ImportsWhy is this a good time to buy?
It is currently a buyer’s market. In response to the current economy, Volvo has announced an industry-leading program named Safe and Sound. Included in the purchase of a new 2009 Volvo is a five-year/60,000-mile warranty, complimentary factory scheduled maintenance, wear and tear coverage and roadside assistance.
What is the best value — car, truck, SUV, specific brand?With the Safe and Sound Program, and Volvo’s safety and durability reputation we feel Volvo is the best value.
How have the recent changes in the auto industry affected your dealership(s)?
We’ve added more experienced, high-quality staff to address the demand for new and used car purchases.
How does the greater Charleston market stack up against other places? Charleston still has a strong economic base and our work in the community in education and charitable work keeps us high on customer's consideration list, even if the economy is slower.
Reach Jim Parker at 937-5542 or jparker@postandcourier.com
