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What's good news for new car dealers is not necessarily good news for the other automotive retailers. Many local used car dealers have seen business fall off by as much as 75 percent.
Some new-car dealerships are currently offering interest-free loans for the purchase of a new car, luring prospective customers away from used cars. That's hurt a lot of small dealers relying solely on sales of used cars, said Ron Milet, general manager of Kearny Mesa-based Family Car Center.
"(On) smaller used car lots, business is dramatically down, I would say about 75 percent," he said.
Milet blames the poor economy, combined with the nointerest car financing options offered by new car dealers.
"It's literally free money," he said. "So that has dramatically affected the secondary market."
A year ago, a car would sit on his lot for two weeks before selling; right now , a car might sit for two months, he said.
This is true throughout the industry. Milet said one local colleague of his, who'd been in the business for 17 years, went 55 days in a row without a single sale.
Tom Bell, manager of Imperial Beach...