Car biz in crisis

Caught between high gas prices and the growing credit crunch, the already struggling auto industry is being squeezed.

Robert Crisafi didn't need to see the latest startled sales numbers to know the picture's grip. A dramatic drop in used cars sales has put his 25-year-old business in jeopardy.

Nobody is buying cars. Finance companies aren't financing. And people can't get loans. From car dealers to car makers, the credit crunch is dealing a devastating blow, siding very tight credit conditions. Ford says its sales plunged 35% in September. Chrysler dropped 31%. And GM 16%. Japaness auto-maker Toyoto had its worst monthly drop in 21 years.

Telling credits anaylists,they are bigger told than expected.

Six out of ten new vehicles are purchased with their loan. And that portion of market is now being pulled back. You are seeing major declines and frankly ,credit has to be loosened for the industry to come back.

And to industry that was already struggling, high gas prices caused consumers to pull back early this year and that digged the sales. On Tuesday, the president signed out a 25-billion-dollar loan package for troubled auto-makers. But the worst may not be over.

The traffic hit the last ten days of Semptember was far worst than first ten days of Sempemter. So it's seem to be an exhilarating problem for that.

While the industry faces potential plant closing and job cuts, car dealers are being squeezed. CarMax, the nation's largest used car retailer, announced 600 lay-offs.

The National Auto Mobile Sale Association says so far this years, 600 auto dealerships have closed down, and more are expected. For CNN Money. com , I am Mary Snow.