By Dan Dourian
Staff writer
April 08, 2008 06:23 am Small car dealerships such as Tony Tally Motor Co., a service station that sells pre-owned cars and performs state inspections on Essex Avenue in Gloucester, have been affected by the struggling economy and rising gas prices. In the past year, sales have decreased dramatically, owner Tony Taliadoros said. "I've been in business since 1943, and it's as bad now as it's ever been," he said. Since their car sales and gasoline profits have decreased, the small auto dealer has begun to sell scooters, which, according to Taliadoros, are more practical than cars. "With the cost of living, people can't afford to pay for gas and live comfortably," said Tom Taliadoros, son of Tony Taliadoros. According to Tony Taliadoros, since the station began selling the scooters two weeks ago, their phones have been ringing off the hook. "We've received a lot of inquiries about them in a short period of time," Taliadoros said. Most of the scooters sold at Tally Motor Co. cost about $1,400. Once purchased, a $20 inspection sticker is required to put it on the road. Taliadoros said the scooters can be used as a primary mode of transportation. They get 110 miles per gallon and have a tank capacity of one and a half gallons. "They'll pay for themselves with the money you save on gas," he said. The scooters, imported from China, are very durable and easy to maintain, Taliadoros said. "Like anything else, if you take care of them they will last," he said. As the price of gas continues to rise, Tally Motor Co. will start to carry more scooters. Gas prices haven't been the only factor in the automotive slump, Taliadoros acknowledged. Since the economy began to dip, larger dealerships have been holding on to trade-ins, which has caused auto auction prices to increase. "We're paying $3,000 for a car we could have bought for $2,000 a year ago," Taliadoros said. With auction prices up, Taliadoros says the station is unable to buy as many vehicles as they normally would. The rising prices have also dramatically cut into their profit margin. "I'm not making as much as I would like to," Taliadoros said. Despite the fact that the price of gas is at an all-time high, smaller gas stations like Tally's have seen a decrease in their profits, when you consider inflation, Taliadoros said. "We are making the same amount of money on a gallon of gas as we did 25 years ago," he said.
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Photos
Tony Taliadoros, owner of Tony Tally Motor Co. on Essex Avenue, is now selling scooters. Taliadoros is hoping people will turn to scooters with their efficient gas mileage as gas prices continue to rise. He also says they are cheap to register. Staff photo