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Used car lots thriving due to credit crunch

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During this recession, we've heard a lot about the struggling "Big Three" automakers and the sharp drop-off in new car sales. But people still need to get around, which is why used car lots are thriving. News 3's Tiffany DeLeon introduces you to one of the few success stories in these tough times.

Ross Hanna runs the J.D. Byrider used car lot near downtown Las Vegas. He says that even with Las Vegas being hit hard by the credit crunch, his sales have firmed up - like many local car dealerships.

"Obviously it stems from the credit crunch," says Hanna. "People like us, it has kind of created the perfect storm. Our sales pretty much tripled, or the potential for sales."

New car sales have stalled because of tough financing. That's why many people who are looking to buy are finding themselves on the smaller lots that often have lower prices and creative credit plans.

"We are doing a lot better this month than we have been doing in the last six months," confirms salesman Jason Albano.

Just two months ago, the Byrider lot was full. Today, only a handful of cars remain.

"We have a lot of cars in our service center, but by the time they come out, we typically already have it spoken for," confirms Hanna.

Because of the high demand, dealerships are facing difficulty in finding them at auctions and purchasing them at a higher rate.

"The prices have gone through the roof, partnered with demand, as well as tax time. But we are paying about $500 to $700 more than this time last year."

Ultimately, it just comes down to what people can financially get themselves into. And instead of placing value on what they want, they are now focusing on what they need.

"We're seeing a lot more people with a lot more diverse backgrounds who need that help - from real estate investors to people I never thought I would see."

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Used car lots thriving due to credit crunch

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