Slow Consumer Spending Hurting Local BusinessesPosted: Updated:
The credit market freeze has made it incredibly tough for companies that rely on sales from consumers having trouble getting credit.
KNDU talked to the owner of Oasis and Tyler Motor Company in Kennewick. He says sales are down more than 30 percent.
The collapsing credit market has many businesses that rely on sales nervous for the approaching holiday season car, retail, electronics sales are all down, leaving business owners anxious.
"When we have the economy do this, it puts stress on all businesses across the board," said Patrick Tyler, Owner of Oasis and Tyler Motor Company.
Tyler has owned the Oasis dealership for 10 years and Tyler Motor Company for three years. He has not seen sales this low since the mid-ninties.
"Just mainly the amount of people that are out looking for cars is 65 to 70 percent of what it used to be, so that extra 30 percent is not buying, mainly doing anything," said Tyler.
When customers do come to buy they want something that's a lot cheaper that's not going to bury them in more debt.
"They're looking more for the gas efficient and smaller cars something that they can commute back and forth to work in, looking for cars for their son or daughter to go to college, and they're more gas conscious," said Rory Bryan, Salesman at Oasis in Kennewick.
For now business owners are having to cut back to keep their doors open.
"Advertising, staff, whatever it takes for me to go, then I'm going to do whatever I have to of course, to weather the storm. Whether, it's a big storm or a short one I don't know," said Tyler.
The DOW jumped 936 points Monday, which is the biggest one-day gain ever. As banks start to recover, economists say more credit will become available and that in turn will increase consumer spending.