Robert Crisafi didn't need to see the latest auto sales numbers to know the picture's grim.A dramatic drop in used cars sales has put his 25-year-old business in jeopardy.
"Nobody is buying cars,finance company aren't financing,and people can't get loans."
From car-dealers to car-makers,the credit crunch is dealing with a devastating below.Citing very tight credit conditions.Ford says its sales plunged 35% in September,Chrysler dropped 31% and GM 16%
Japanese auto-maker Toyota had its worst monthly drop in 21 years."Tightening credit" ,say analysts, "took a big toll than expected".
"Six of every ten new vehicles are purchased with a loan and that portion of that market is now being pulled back,you're seeing major declines ,and frankly,credit has to be loosened for the industry to come back."
And to the industry that was already struggling,high gas prices,caused consumers to pull back early this year,and that dented sales.On Tuesday, the president signed a 25-billion-dollar loan package for troubled auto-makers. But the worst may not be over.
"The traffic at the last ten days of September was far worse than first ten days of September.So it's seem to be an accelerating problem for them".
While the industry faces potential plants closing and job cuts,car-dealers are being squeezed. Carmax , the nation's largest used car retailer,announced 600 layoffs.
The National Automobile Dealers Association says so far this year,600 auto dealerships have closed down,and more are expected.
From the CNN Money.com .I'm Mary Snow.