Lona Mullinax of Mullinax Auto Sales in Anniston said business has been picking up lately, much like it did during previous recessions in the 1970s and ’80s. (Anniston Star photo by Trent Penny)
It does not, however, come without stress. After all, it is a scary thought — your teen out on the highway.
What was that article you read one time about their brains not being fully developed until they’re 20?
So, if the money is there, most parents would rather get the safest and therefore the newest thing available. Airbags are a must; so are the best brakes money can buy, along with a body built to protect a NASCAR driver.
Not everyone, though, has that kind of cash hanging around, especially right now. The new driver in the family, then, is mostly likely going to share mom or dad’s car, get some sort of hand-me-down or be the proud owner of a used car.
If you fall into that last category, brace yourself. The used car market is hot right now. Nationwide, prices have risen and are still creeping up.
Why? Several things, apparently, are contributing to the upswing in prices. Remember last year’s “cash for clunkers” program, the government-sponsored plan that moved older, fuel-inefficient vehicles off the highways? It succeeded in boosting sales of new vehicles, but it also reduced the number of used cars on the highway.
A segment on Marketplace, the National Public Radio program, also says the anemic economy and the bland outlook for recovery are causing more people to hold off buying new cars and instead settling for used ones.
Well, that’s the deal in Chicago, Seattle, Omaha and elsewhere, but the question is whether the same holds for, say, South Quintard.
By most accounts, it does.
Lane Luker, the general sales manager for the used division at Sunny King Ford, says that, while used car sales have drifted for the most part, truck sales “have been off the chart.”
In this part of Alabama, Luker says, people want trucks.
“We just can’t keep enough of them right now,” he said.
While a number of reasons could factor into this, including something in our blood that makes people in northeast Alabama want to own a truck, Luker says it doesn’t hurt to be a Ford dealer.
“We sell a solid brand,” he said. “People trust what we make.”
Business is also brisk across the street at Mullinax Auto Sales, where you can find a wide variety of makes and models of cars and trucks.
Lona Mullinax, who has been in the business with her husband, Henry, for decades, says sales are indeed good.
“Well, the truth is,” she said, “our business usually picks up in tough times.”
Mullinax said that in January of this year, sales started picking up and they have stayed that way all year.
“We had the same thing happen back in the 1970s and in the early ’80s when the other recessions happened,” she said.
What seems to happen during difficult economic times, she explained, is people turn to used cars because they want to try to stay within budget and are often concerned about the future, such as holding on to their jobs.
Rafael Sanchez, the general manager of the new Kia dealership on South Quintard, also reported strong sales of both used and new cars.
“There is a quick turnaround in used cars on our lots,” he said.
The movement in used cars, however, seems to be having the predictable effect of pushing the prices up.
Sanchez reports that the price of used Kias at auction have increased “roughly 15 to 20 percent since the late spring.”
Lona Mullinax also says auction prices have increased for many vehicles, something that is confirmed by Lance Turner, the co-owner of Pee Wee Turner’s Used Cars.
“Auction prices have moved up a little,” he said. “They certainly haven’t fallen.”
Several dealers, including Kenneth Baker at Classic Cadillac GMC, said the stabilization of gas prices has improved the market for used cars. Indeed, Lona Mullinax said sales at her lot have included as many heavy vehicles as fuel-efficient ones.
Of course, if the trend continues, if the price of used cars keeps inching up, then there will come a time when the difference between the price of a new and used vehicle is reduced to the point where it will be easy to make the jump to a new one.
That’s something the teenager in the family probably wouldn’t mind.
Anniston Star Editor at large John Fleming explores issues related to the area’s economy and businesses in this weekly news column. Send topic suggestions to jfleming@annistonstar.com.
