Brad Mugg Managing Partner of Honda of Downtown Los Angeles on Sales During the Gas Price Surge
Transcript
Sean:nYou have some crazy LA gas prices! We talked about that in the intro, how has that affected the purchasing? I remember back in 08 I guess when the gas prices spiked and just you know, right around the housing market crash, I remember I was at the auction with a little black book and I was about to bid on a, I think it was a Chevy Trailblazer, or Trailblazer at the time, and it should have been like 11 grand and all of a sudden, nothing’s going for like 8 and then I’m looking at a Ford Focus that should have been 13 grand, and it was going for you know, like 15-16 and like, what is going on here? Well, how was the gas shift there affecting your customers?n
nBrad:nWell, I mean, you know, for Honda, you know, being so great on gas mileage, I always feel it doesn’t help us. But in 08 and 09, because I’ve been with Honda for 35 years in 08-09 It was crazy. You could walk out on the lot and every single trade was like a Tahoe, you know, a suburban you know, everything under 15 miles per gallon. I remember specifically going out there whoa, wow, look at all these and you’re right, you’re bringing no money. And you know, Honda’s were bringing all the money at that time. And right now, it’s interesting. We don’t see those trades right now. We do not see those trades like we did back then. But I mean, gas, usually high gas prices, just helps fund them. You know, because everyone gravitates to vehicles that have big gas mileage, which we definitely have that.n
nSean:nYeah, that’s a huge advantage. That’s awesome. It’s always nice when the market changes affect your business in a positive way. I really appreciate that. Yeah, yeah. Oh no, God we’re gonna savoru2026n
nBrad:nOh yeah, just gonna say we had a sales meeting back with gas at the $5 amount I go guys, let’s hope it goes to $7 a gallon. So you know I was gonna help us you know, everyone’s cheering and clapping and I didn’t think it was gonna happen.nn
nBrad:nWell, I mean, you know, for Honda, you know, being so great on gas mileage, I always feel it doesn’t help us. But in 08 and 09, because I’ve been with Honda for 35 years in 08-09 It was crazy. You could walk out on the lot and every single trade was like a Tahoe, you know, a suburban you know, everything under 15 miles per gallon. I remember specifically going out there whoa, wow, look at all these and you’re right, you’re bringing no money. And you know, Honda’s were bringing all the money at that time. And right now, it’s interesting. We don’t see those trades right now. We do not see those trades like we did back then. But I mean, gas, usually high gas prices, just helps fund them. You know, because everyone gravitates to vehicles that have big gas mileage, which we definitely have that.n
nSean:nYeah, that’s a huge advantage. That’s awesome. It’s always nice when the market changes affect your business in a positive way. I really appreciate that. Yeah, yeah. Oh no, God we’re gonna savoru2026n
nBrad:nOh yeah, just gonna say we had a sales meeting back with gas at the $5 amount I go guys, let’s hope it goes to $7 a gallon. So you know I was gonna help us you know, everyone’s cheering and clapping and I didn’t think it was gonna happen.nn