SPRINGFIELD - As top automakers ask Congress for help in keeping cars rolling off their assembly lines, some car dealers across the state are feeling the same economic pain locally.
The last year in particular has been rough on the state's approximately 1,000 dealerships, said Peter Sander, president of the Illinois Automobile Dealers Association.
"There's no question we've lost probably 30 to 40 dealers in the state of Illinois," he said.
Business was hurt further by the credit crunch of several months ago, Sander said. It's hard for most people to buy a car without a loan.
Not only that, said Larry Grischow, owner and general manager of the Bob Ridings dealerships in Decatur, but the country's recession has some wondering if they want the financial burden of another loan.
"People are just afraid to make that decision to buy that vehicle," Grischow said.
He says the business is doing OK, but it would help for the economy to rebound or for Congress to send money to the car manufacturers.
Used car dealers aren't immune from the downturn, either. Pete Hedinger, owner of Custom Auto Sales in Bloomington, said business has been slower. He finds more "need" buyers on his lot than "want" buyers.
In the past several months, many of customers' previous cars often broke down or were wrecked, leaving them in need of a relatively inexpensive car immediately.
"The browsing is down," Hedinger said.
A decline in car purchases could hurt state government, too. At a time when the state is already cutting back on services, Sander said vehicle sales could make up as much as 20 percent of the state's sales tax revenue.
Posted in Business on Wednesday, December 3, 2008 12:00 am Updated: 11:50 am.
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