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Some car shoppers might leave disappointed when they walk in to buy a new set of wheels. As lenders tighten up their standards, many borrowers have found themselves struggling to get financing.
[0]car salesUsed Car Manager of Mtn. View Chevrolet Kevin Harris, "It's affected it a little bit, there's a lot of uncertainty of people not sure what's going to happen."
U.S. auto sales took a 27 percent dive in September. Some analysts blame the nation's tightening credit market. But there's one bright spot. Overall, certified used cars sales were up.
Harris, "Institutions are lending money, they're here weekly asking us for business. We've got a real good business manager who takes a look and he knows what institutions will do what."
Kevin Harris of Mountain View Chevrolet says automakers have lots of incentives right now for both new and used cars.
Harris, "With everything that's going in now it is really a good time to buy a car, because we do have rates as low as 3.9 percent on used vehicles. On the new cars we also have zero percent financing on those for certain vehicles for certain terms."
But some car shoppers skip the financing altogether and head to "buy here pay here" dealers like Best Motors.
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Rick Gregg says business is good.
Rick Gregg, "Mr. Fay's been doing this 50 years. A lot of business here is repeat business."
Gregg says since they finance their own cars, they can say yes more often and work with people who fall behind. Even with those flexible terms, some people can't keep up.
Gregg, "Mr. Fay says repossessions are higher now than he's ever seen them, and I think it's the worst I've seen it too."
Dealers say the money is there for people with good credit. But borrowers with past problems or those who still owe on a vehicle might want to ride it out.
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