Slow economies have historically meant big business at used-car lots. This time, though, a credit crunch has buyers crowding big dealers to check out cars referred to as preowned.
It’s all about the financing: New car dealers can offer loan arrangements on both new and used cars, while traditional used-car lots leave it to customers to get loans.
This year, it’s been tougher for consumers to qualify for used-car loans – though more people than ever need financing to make their purchases, said Sam Novel, the owner of Automania in Long Island City, Queens.
“The banks are being more picky,” said Novel, who predicted that sales at his used-car lot on Northern Blvd. will be lower this year than 2006, his last robust year.
Weak auto sales are another indication that the subprime mortgage crisis has spread well beyond real estate.
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