Durable goods like cars, refrigerators, televisions and washing machines wear out over time.  People plan to replace them periodically, but right now many customers are delaying those purchases.

They will likely still buy these big ticket items in the future, but right now they are waiting to see what happens with our economy.

We will likely see stores close and in the auto sector there will likely be mergers and buyouts of local dealerships, but that isn’t always to be blamed on the local business.  National chains or parent companies may have overextended themselves, there could be oversaturation in the market in general, or since there is a change in consumer buying habits during this time, their shops could become too niche specific for the market.

The good news here is, manufacturers need to move their inventory so stores are getting items for less and pass savings on to you.  If you have money set aside it’s a good time to buy, but if you don’t, be careful of credit debt.   Don’t over extend yourself!  Many retailers and experts have said that over the past few years, people were splurging and buying well over their means, but in this challenging economic time that is the worst thing that can happen.  Be wise when making this personal decision…ask yourself first “can I afford it?”

We met with regional representatives from the auto and durable goods sector to find out what they are dealing with right now and our partnering economics professor from Bradley University Dr. Joshua Lewer also weighs in on the subject.

Jim McConoughey

Dr. Joshua Lewer

Paul Sherman

Mike Mangold