By NICK YAMASHITA
The Progress
Many people passing through downtown Overton have noticed that there are currently no cars for sale at the Town and Country Auto Sales. This eerily empty car lot has led to gossip and rumors that have flooded social media claiming anything from the business closing its doors to supposed health problems of the business owner. None of those rumors are true.
Jeff and Teresa Jones, owners of Town and Country, sat down with The Progress last week to clear up some of the false information that is circulating in the community and around Southern Nevada.
“We really, really want to highlight that we are not going out of business,” said Teresa. “We are going on a vacation and a break, mainly to observe the auto sales market and see how things play out.”
The fact is that it is a strange time in the used car market. The biggest problem has been an after-effect from the Covid-19 pandemic, Jeff said.
“The used car, and even new car, sales have been affected greatly by what occurred last year,” Jeff said.
“We have seen an inflation rate of 40% in the industry. Ford even released news that they have 20,000-25,000 F150s backlogged, waiting for computer chips. Because of this, there is an estimated 2.5 million fewer cars that will be sold so far this year. And we are only in May.”
Since the beginning of the year, the country has seen inflation in prices on many different types of product, from gasoline, apparel, lumber, and cars as well as car parts. The LA Times Business Engagement Editor, Rachel Snalzer wrote in an article published last week that “…now is the best time ever to sell a used car — as long as you don’t need to buy a car to replace it.”
“It is pretty much impossible to buy a used car and make money off it right now, Jeff said. “There is very little supply right now for used cars. The big guys need vehicles since they have many sitting and waiting for parts from the factories and are now cutting into the business of used car sales.”
The total number of used cars available for sale, according to Cox Car Services, is down 20-25% since 2019 depending on the state. Over 12% down since May of 2020 for the biggest market of used cars in California.
Last month, the used car market was hit with a massive surge in used car prices. They went up 10%.
“In 36 years of business within the used car market, such a rapid 10% increase in car prices has never happened,” Jeff said. “In fact, the last time it happened was in 1953.”
“It is just common sense for us to take time off and observe and evaluate the market during the summer,” said Teresa. “Right now there is no way we can make money in the business. We would lose money.”
Predictions on the prices for used cars are not good either. Larry Dixon, a vice president at the National Independent Automobile Dealers Association said, “It is going to get worse as the year progresses.”
Jeff and Teresa Jones also discussed other rumors that had been relayed to them recently.
“Many have suddenly noticed the real estate sign that is out in front of the car lot,” said Teresa. “The fact is that we have had the property for sale for over four years now. So there is nothing new on that.”
And as for health concerns with Jeff, he is absolutely healthy,” Teresa added. “In fact, he has had much lower cholesterol levels since we started this vacation.”
Another rumor circulating was that the Joneses were moving. “We are not moving!” said Teresa. “We are very happy to be in Moapa Valley and we love it here. It is our home.”
The Joneses are planning to end their vacation in August as car sales will likely go up at that point from kids heading to college. Even so, that is not certain.
“This vacation was an economic decision for us,” Jeff said. “It is common sense for us to wait and watch the market and take the time off.”
“It has been a rough couple of years!” Jeff added. “We are taking a much-needed vacation. We are still in business and we are still licensed. We look forward to serving the community again after our vacation.”
