10/29/2008

Business as usual at Barrett

By Bob Lassahn

If someone out there is unaware about the present concern with the American economy they have likely been sequestered in a dark, isolated, soundproofed room for an extended period. The news has been heavily charged with lots of doom and gloom of late. The automotive industry has certainly been at the center of some economic discussions. With GM and Chrysler talking merger and the failure of some dealerships around the country, there could be people wondering if the bicycle is in their future as a primary mode of transport.

To take a look at the picture locally The Courier contacted James Russell "Russ" Barrett, president and general manager of Barrett Chevrolet, Inc. Chrysler-Dodge-Jeep in Berlin.
Russ became involved in the business in 1982 and now, along with his brothers John, who joined the business in 1993 and Stephen, who came aboard in 1995, are the current owners.

Russ concedes his new car sales are slightly down and that is certainly in keeping with the trend nationally. The scary financial situation has contributed, as have rising gas prices.  But as gas prices recently began to trend downward, car sales seem to be picking up. As for the economy, a lot of people are uncertain and of course for someone who has lost their job or is facing foreclosure on his or her home, the issue hits them squarely where they live. But contrasting with some of the hype on the evening news, banks are still lending money and for those with the ability, desire or need to purchase a vehicle, loans and good deals are available.

Russ says the so-called credit crunch has certainly not impacted General Motors in their ability to secure lending. With a program called "Financing that Fits" GM is using numerous banks to assist buyers. Russ says that on select models in their lineup they have financing available as low as zero percent for 72 months. Loans are available at good rates and are being turned around quickly. Contrary to some recent publicity, in his experience lenders are not requiring higher down payments and in most cases a trade-in and/or the rebates now being offered prove sufficient to preclude the need for additional cash from the customer's pocket.

In his view there has not been a change in the status quo regarding lending for automobiles. Loans that today are disapproved altogether or are available only at a higher interest rate usually involve a poor credit rating. No change there. They represent those loans that were (or should have been) turned down even when times were good.

The large inventory of new vehicles currently on dealers' lots is creating some excellent deals for customers. Chrysler-Dodge-Jeep Sales Manager Roman Suska notes that sales incentives are being offered at unprecedented levels and in some cases a vehicle could easily sell for about the same price as four to five years ago. He also comments that warranties, such as Chrysler's lifetime power train offering, further enhance the value to consumers.

As to the types of vehicles being sold Roman says the trend toward more fuel efficient vehicles seems to come in spurts. He speculates that people might be torn between some additional "MPG" and continuing to drive the type of vehicle they are used to that best fits their lifestyle. On this front Russ offers that in the GM lineup there are 10 cars that post greater than 30 mpg on the highway. Among these he points to both the Malibu and Impala as offering excellent value and a car that offers some passenger room and comfort, while still keeping fuel consumption (and costs) down.

The conversation on fuel efficiency naturally led to a discussion of "hybrids." Roman comments that the hybrid hype is sometimes misunderstood and the vehicle is a special purpose one that provides the best performance on fuel consumption under specific circumstances. His views are in keeping with The Courier's research on the topic. Generally hybrids are viewed as at their best in city driving, at speeds below 40 mph. Once that speed is exceeded, the hybrid becomes an internal combustion powered vehicle and fuel consumption goes up, ultimately performing about the same as most conventionally powered comparable vehicles. Bottom line is, driving habits dictate if the usual premium paid for a hybrid vehicle will result in sufficient savings down the road to make it the right choice.

Russ is optimistic that much of the uncertainty contributing to the slump in sales could ease once the presidential election is over and people begin regaining their confidence in the economy. The question marks on both issues are a huge factor in the decision to purchase a vehicle and the associated financing. However, for him the issues remain the same in both good times and bad. To attract customers with the best deal, then keep them happy with continued customer service. It is pretty much business as usual and the consumer might stand to get more bang for their buck.

Barrett is family owned business that has been in operation since 1951, when Russ' grandfather, Gil Barrett purchased the former Berlin Motor Company and changed the name to Barrett Chevrolet. Upon Gil Barrett's passing in 1968, sons John G. Barrett and James G. Barrett took over the business. The Barrett family is widely recognized in the area for their community service.

In 1958 the firm moved from downtown Berlin to its present location at 10419 Old Ocean City Blvd. The location was originally built for Tucker automobiles and subsequently housed both Studebaker and Lincoln-Mercury dealerships.

The now defunct Oldsmobile line was first added to the lineup of vehicles from Barrett Chevrolet and in 1982 they also began carrying the full line of Chrysler, Plymouth (now defunct), Dodge and Dodge trucks. The Jeep marque was acquired by Chrysler in 1987 and is currently among the offerings at Barrett