Car dealerships in DeKalb are preparing for the worst.

With the unsteady economy, many are cutting back spending on luxury items.

“People are becoming cautious with their spending,” said Jeremy Groves, assistant professor of economics. “Extra things like a new car are going to go out the window.”

Dealerships in DeKalb are feeling these effects.

“Business is down a little bit,” said David Riebe, sales manager at Brad Manning Ford Inc, 402 Manning Drive. “[The economy] is scaring people.”

Tom Sparks Buick Chevrolet, 216 S. First St., has not seen any difference in sales, but is anticipating a change.

“If your car isn’t needing to be replaced, maybe customers won’t be going into the market to buy,” said Tom Sparks, owner of Tom Sparks Buick. “The people that are considering buying a new car may turn to a used one.”

However, Mike Mooney Chevy, Cadillac, GMC & Pontiac, 204 N. Fourth St., has seen a 28.89 percent increase in new vehicle sales year-to-date through September 2008 as compared to September 2007, said owner Mike Mooney.

“This year’s increase in sales is due primarily to our selection of the GM products which we sell,” Mooney said. “We have of wide variety of products and those products have excellent quality ratings.”

Although sales have increased, Mooney is uncertain of the future.

“For us it is not yet a question of when ‘things will pick up’ but if things will decline,” Mooney said.
Meghan VanHam, DeKalb resident and Michigan State alumna, has been fixing her car rather than buying a new one.

“Because of the economy, I can’t find a job with my degree and I have to keep getting my car fixed,” VanHam said. “I can’t afford a new car payment right now, and definitely can’t afford one outright.”

Some dealerships in DeKalb think people also may be worried that financing is not available.

“That [idea] couldn’t be farther from the truth,” Riebe said. “Interest rates are as good as they’ve ever been.”

Tom Sparks Buick Chevrolet has been able to receive financing as well.

“It’s very unusual when I have a customer who wouldn’t qualify for a loan,” Sparks said.
Mooney has seen some tightening in availability for those with low credit ratings.

“The availability of loans for individuals who are credit challenged has tightened,” Mooney said.

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