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Good Times Rolling Author(s): Maayan Jaffe Staff Reporter Date: December 19, 2008 Section: Business
For the American automotive industry, recent weeks have been a roller coaster. As the feds tried to figure out just how they would rescue the struggling market while confronting mismanagement and deregulation, bigwig CEOs at General Motors Corp., Ford Motor Co. and Chrysler Group sat on edge. On Dec. 11, the Senate killed a $14 billion bailout. President Bush said onTuesday he is "considering all options." The auto industry, hit hard in the economic downturn, is seeing prestigious car dealerships boarded up or laying off employees. American car makers are losing money, admitting their technology and designs are far behind that of foreign competitors. However, the used car dealerships on auto row in Pikesville (the Northwest end of Reisterstown Road) are saying that business is as usual - if not better.
In fact, a new dealership just popped up over the summer, Luxury Motors. Its owners -Jason Dennis, wife Lauren, father Craig and kid brother Lance - are defying the odds. "If you ask is it better to buy a new car, buy a used car or lease a car, the trend now is to buy a used car and then just run it into the ground," Lauren Dennis said.
In fact, Luxury Motors has moved 85 percent of its inventory, which includes mostly vehicles that cost less than $10,000, each month for the last four months, noted Jason Dennis. The Baltimore Jewish Times spoke with Jason Dennis about that and more.
Baltimore Jewish Times: Should the government have bailed out the automakers?
Mr. Dennis: No, I feel in business... the strong will survive. Those businesses should have been tightening their belts, watching their dollars... We're hopefully going to start a family soon, and all these bailouts can only hurt my kids' futures. I want my children's [government] to be as debt-free as possible and living in an economy that is strong and sustainable.
Is the auto industry in as much trouble as the media has made it seem?
According to news on the street from our competitors and friends, yes, times are slower than ever.
What happened to the U.S. auto industry?
I'm a young entrepreneur and somewhat new to the scene. But as long as I have been around, some of the better products out there - because of the technology - have been the Hondas, Toyotas and BMWs. Maybe if America had spent more time on the technology aspect, putting out a better product, not just [one that looks good], we wouldn't be in this situation.
So foreign cars are always better?
There are pros and cons to both foreign and domestic vehicles. The pros to your Honda, Toyota, Lexus and Beamer, for example, are the longevity, reliability and resale value. But your repairs and maintenance will be twice as expensive as your American domestic brands. So, when you are dealing with a used vehicle, going domestic will save you in the long run if you are not smart enough to have an extended warranty or the right protection for your parts and labor on your imports.
How does the current economic climate affect your bottom line?
Smaller, used car independents are able to sell more due to the fact this is what people can afford and it's a smarter buy.
What do buyers need to know?
The most important advice would be to make sure you find a dealer you can trust - it can be the difference between an OK deal and a great deal, which on a used vehicle could mean between $2,000 and $4,000.
What are you hearing from neighboring dealers?
So far, we are all OK and making it.
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