PENSACOLA, FL - Getting a car loan during this credit crisis is tougher than it used to be.

Channel Three's Grace White joins us from Pensacola Honda.

How's the credit crunch affecting them?

As the economy slows...More cars like this one sit on the lot.

Which means lower prices for you...*if you have good credit.

Three years ago the car business was at it's peak...Practically anyone could walk in the door and walk out keys in hand.

But not anymore...

Bob Meredith, Pensacola Honda: "We don't see as many people coming through the doors, it's not the environment we'd like. It's just the state of the economy."

It all comes down to money....

While potential buyers are looking at the bells and whistles...Paulo Bressiani is on the phone with the bank checking your credit.

Paulo Bressiani, Business Director: "Now it's basically, ok you have a 730 let me look at the time the person has been on the job and how much money the person makes and everything else. They make sure everything is in line where as before there would be no questions asked."

The process forces customers to wait for 30 minutes or so for the deal to be approved.

Paulo Bressiani, Business Director: "That's why we are not doing the hey you qualify here it is we'll send it to the bank tomorrow type of thing."

Bob Meredith, Pensacola Honda: "For all the money that's out there to loan, it's very restricted and it's all happened in the last 30, 45 days."

Bob Meredith says banks are shortening up on payment times ...So customers looking for a longer loan term...Now face higher rates.

It's the sub-prime customers with teetering credit scores that are really affected.

Paulo Bressiani, Business Director: "Even with the borderline people you would know that they would qualify at a higher rate and you could play safe with that higher rate nowadays they may not even be able to buy the car."

And if banks let through a 725 score one week...There's no guarantee they'll do it again.

It's case by case and Bressiana says every money move you make ... Counts more than ever.

Paulo Bressiani, Business Director: "It's pretty much impossible to get a car loan nowadays, if you are late with your mortgage."

Usually around 30 people walk through the door each month and right now that number is cut in half.

We actually were looking for customers today and couldn't find a one.Credit Solutions For Car Loans