Economy Affects Car Sales

By Fraendy Clervaud
WJBF News Channel 6 Reporter
Published: October 3, 2008

Augusta, GA—- Richard Youngblood is just one of many Americans finding it hard to buy a new car or get gas.
   
Richard Youngblood, Consumer “Cars are overpriced. GMC is catching a hard time; everyone wants a bail out it’s a bad time to be buying anything. People who have money they better hold on to it. 

With many banks running out of money to loan, it’s getting harder and harder to borrow for big-ticket items like cars. It’s a pinch many car dealerships are feeling.

Johnny Royal, General Manager Bob Richards Nissan “Because the way the economy is, banks are only going to let you finance a certain amount of money so it’s hard to get over on a customer.”

According to a Reuters report over 3-thousand U.S. car dealerships could fail this fall and into 2009.  All this because of weak sales and customers unable to get the credit they need. But on a local level one car dealer says things are different.

Johnny Royal, General Manager, Bob Richards Nissan “The last couple of months we have been number one in the South East. So as far as Nissan goes Bob Richards Nissan we have gone up tremendously.

Fraendy Clervaud, Reporting “There are many vehicles to choose from. From sedans, pick up trucks and even SUV’s. But a lot of folks aren’t coming out to buy and that’s why many local car dealers are offering incentives for those who need a car.” 

Incentives include free gas, major discounts and other perks.  They’ve even slashed prices—but some consumers aren’t buying.

Richard Youngblood, Consumer “We’re just in bad shape right now and to go add more debt. You can’t spend money that you don’t have. If you having a hard time making a house payment you sure can’t afford a car payment. So it’s best to patch it up a little bit.

So if you’re trying to get a new ride - regardless of your credit rating you may find it a little more difficult.