Garages see business change because of soaring fuel prices

Skyrocketing fuel prices are having an impact not only on the driving habits and household budgets of families, but on the very businesses that sell and service the vehicles that consume the fuel.

An informal survey of a handful of Northwest Corner auto sellers and repair shops reveals that they are all grappling in some way with the effects of high petroleum prices. Some report that the volume of customers is down over the last year. Others say they have the same number of customers but that vehicle owners are being more selective about the repairs they consent to. Still others say customers are being more diligent about routine maintenance because they are fearful of damaging a car by neglect and having to spend far more to replace it.

“I’d say my business is down at least 10 percent over last year,� said Steve Ohlinger, owner of the Auto Shop in Salisbury. “A lot of customers are putting off repairs.�

In addition, many customers are driving less because of gas prices that in some cases are approaching $5 per gallon. That means they need less in the way of service, whether it be an oil change, a new exhaust system or a standard 60,000-mile tune up. As a result, Ohlinger has had to reduce one of his three mechanics from working five days a week to three.

The Auto Shop, which also sells used cars (mainly Audis, Volvos and VWs), has seen an uptick in sales of lower-priced, higher-mileage cars in the $3,000 to $5,000 range. The Auto Shop’s bestsellers are currently older Volvos, especially of the pre-1998 vintage. Ohlinger added that, “People are sticking with older cars until they don’t run.�

Judy Jacobs, who owns Jacobs’ Garage with her husband, Dennis, said customer volume is holding steady at their 78-year-old Falls Village facility, but that “some people are putting off things like oil changes.� The pace of customer volume is not as consistent as it was a year ago, with more customers at the beginning of the week and fewer toward the weekend. She’s not sure why that is.

The Jacobses, who also sell gasoline and diesel fuel, have been trying to hold the line on service prices, but they’ve had to raise rates.

“Tires, lubricants and plastics are all petroleum-based,� Jacobs explained.

Like Ohlinger, Jacobs has noticed a trend of owners holding onto older cars longer than usual. Meanwhile, however, people appear more diligent about getting tune-ups and maintaining proper tire inflation. The message is out that neglect of those measures can result in poor fuel efficiency.

Finding new efficiencies

One measure the Jacobses have taken to reduce expenses is to adapt their heating system to warm their garage and office with waste oil during the winter. It burns clean and saves the garage the expense of having to buy heating oil.

“Before, it was costing us to have it hauled away,� Jacobs said of the old oil drained from cars and trucks. “It’s killing two birds with one stone.�

Bill Hower owns Jim’s Garage in North Canaan. It’s been in business for about 40 years and has specialized in selling and servicing used Subarus for more than 15 years. Oddly, he experienced a decline in business over the winter of 2006-07 but has seen a “significant� increase since the last holiday season, though he could not say by how much. But he, too, thinks the increase in his service business can be traced to a heightened interest in making the vehicle last.

“People are taking a longer view,� Hower said. “They’re saying, ‘I want to see this thing last and I want to maintain it.’�

In addition to tune-ups, wheel alignments and new tire sales, which can improve gas mileage, Hower has been shifting some people over to synthetic motor oil, which is more expensive than standard engine oil but lasts longer and can result in better all-around performance, including fuel efficiency.

Hower, who also heats his garage with waste oil, has found himself dispensing advice to clients on how to get better mileage at every turn. Simple everyday measures such as avoiding sudden stops and jack-rabbit starts can save fuel. During summer months, so can turning off your air conditioning when going up a steep incline.

Hower added that sales are also up over last year — a phenomenon he attributed to Subaru’s reputation for reliability and fuel efficiency.

“I’ve seen a definite increased interest in trading in gas guzzlers,� he added.

Here, there, everywhere

The experience of Northwest Corner repair shops is consistent with national trends, according to Angie Wilson, vice president for marketing of the Automotive Service Association, a trade association that represents thousands of automotive service businesses nationwide.

Hard figures were not yet available, but Wilson spoke recently with several independent shop owners. They have not seen huge increases or decreases in volume, but have observed that “some customers are being more selective in what they consent to.�

“They want to do the cheaper repairs first, especially those that help with fuel efficiency,� Wilson said. “Only six months earlier, people said ‘yes’ more readily.�

And the big Detroit automakers have been forced to downsize their retail operations. The combination of a sluggish economy, high energy prices and the demand for more fuel-efficient vehicles have actually forced the closure of hundreds of auto dealerships in the last year alone, according to a January report in USA Today.

Locally, there have been two casualties in Berkshire County, Mass. Condor Chevrolet on Route 23 in Great Barrington shut its doors about two years ago, while Pete’s Auto Mall is expected to close in a few weeks. Those two closures will leave Great Barrington without a new-car dealership.

The Quattrochi family, which owns Pete’s, sold its Pittsfield operation to the Lenox-based Haddad’s in March. Pete’s Motors in Pittsfield also sold Subarus, which made it more attractive to Haddad’s than the Great Barrington operation, which sells mostly larger American vehicles.

Ohlinger said people in the industry jokingly refer to SUVs not as an acronym for sport utility vehicles, but for “suddenly useless vehicles� — so named for the difficulty dealerships such as Pete’s are having in moving their gas-guzzling Chryslers, Jeeps and Fords.

“There’s a lot of ‘big iron’ on the lots,� said Ohlinger. “Anything big is down.�