Nov 6, 2008 4:02 pm US/Pacific
Car Lots Closing, Credit Crunch Affecting Spending
STOCKTON (CBS13) ―
Local used car lots are closing very quickly and the credit crunch is putting the brakes on consumer spending while sending dealerships spiraling out of business.
While many of these car lots have closed, others are seeing a major slump in sales. CBS13 went to Stockton to check out the difficulties potential car buyers are facing even at discount dealerships.
Small car dealerships up and down the state of California are closing down.
One particular car lot in Sacramento was open last night, only to be found vacant this morning.
It is a similar scene in the Stockton area.
Down Wilson Way, a known area for mom and pop dealerships has its fair share of empty lots. This leaves those dealerships who are barely hanging on very nervous.
"Some days it gets a little scary," says Michelle Harris.
Michelle Harris, owner of King's Auto Connection, says her family was living comfortably selling 12 to 16 cars a month.
"We're only doing half of what we normally do, which is a huge drop," explains Michelle.
But, due to a credit crunch banks are no longer giving up the cash as easy.
"It's been really frustrating because my car is at the point where it's not going to go any longer," says Carla Overby.
With almost 200,000 miles and a few dings here and there, Carla Overby says she needs her SUV to get her kids to school. She told CBS13 that she has tried dealership after dealership, only to be denied. Overby is worried that she will be left without a car.
These tough times are not only affecting the buyer, but also affecting the smallest dealership trying to hold on.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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