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Used Car Dealers Blame Cash For Clunkers For Sales Slump

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Cash for Clunkers got credited with boosting sales for car dealers.

But the government rebate program and the economy get the blame for record high used car prices last month.

Local dealers still feel the pinch but they expect a turn around.

Shane Desautels, Customer, "Very important. Gotta get from point A to point B somehow."

The need for transportation and the economy drive customers like Shane Desautels to Best Motors.

Three months ago he picked up a red volkswagen Jetta.

Shane Desautels, Customer, "The main benefit in my opinion is the price and the Buy Here Pay Here. That's always a plus as well."

But Owner Fay Sims has hit a bit of a slump.

Fay Sims, Best Motors, "Sales up until about two weeks ago have been real good. It's slowed up a little bit now."

And he blames the recession and Cash for Clunkers.

The rebate program sent cars that would draw customers to used car lots like his to the junk yards for destruction.

Sims, "They crushed several million good cars. It's hurt some but we'll get over it."

Sims looks to the economy to help Best Motors do just that...hoping used cars will entice more customers like Shanta` Scott.

Shanta` Scott, Customer, "It's more convenient. It's buy here pay here and unfortunately my credit isn't that good so I had to come a place where they accept me for who I am and what I can afford."

From 2004 to 2008 drivers bought nearly three times as many used cars as new ones.

That's according to numbers from the National Independent Car Dealers Association.

It predicts significant improvement in sales this year.

Sims, "The new car places have slowed up quite a bit since the junkers are over with."

And Fay Simms shares the optimistic outlook.

Sims, "I expect it to pick up. I really do."

Prices for new cars also last month after declining with Cash for Clunkers..

They're up almost half a percent.


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