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Used car dealer says "Clunkers" crushing his business
Used car salesman says "Clunkers" crushing his business
By
Tami Osborne, WINK News
Story Created:
Aug 11, 2009 at 9:01 PM EDT
Story Updated:
Aug 11, 2009 at 11:10 PM EDT
EAST NAPLES, Fla. - Some used car dealers say the government's "Cash for Clunkers" program is crushing their business.
In a normal month, 15 to 20 cars are sold at Indoor Auto Sales in East Naples. So far this month, they've only sold two. Owner Jim Divita says that's because many would-be used car buyers are taking advantage of deals and going new.
"When they're advertising brand new cars for under $10,000, with a trade in, its pretty tough to buy a used one with 50,000 miles for $8,000 or $10,000," he says.
After working nine to five without a sole at his used car lot, Divita finally gets his first customers at the end of the day.
"We used to see quite a number of people, and in the last month, its slowed down considerably," he says. "If we get a couple people a day through here with our extensive advertising and everything, its a miracle."
Besides crushing business, Divita says the "Clunker" program is forcing dealers to crush cars that aren't at their end.
"Its really a shame because some of them are pretty darn nice, cars we would normally sell to keep our livelihood," he says.
The government expects the program will take $750,000 clunkers off the roads. Divita says that means fewer available used cars and higher prices on the ones that remain.
"They're gonna be later model cars than I normally would handle, and my customers may not be able to afford that," he worries.
And if Divita isn't selling cars, he isn't making a living.
"It might be a total devastation to the car business. Who knows," he says.
We also talked with a local economist today. Dr. Gary Jackson tells us he believes the prices of cars that normally sell for under $4,500 will be effected most, since those are the cars being traded in as clunkers.