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Consumers a reluctant bunch at LA Auto Show



By DAN STRUMPF, AP
22 November 2008 @ 05:13 pm EST

LOS ANGELES - Small-business owner Greg Mohr was hopping in and out of cars at the Los Angeles Auto Show, but he isn't in the market to buy one. Neither are retirees Greg and Pinkie Stanley, or trucker Jorge Vidrio.


Auto Show Consumer
Brandon James 2, from Long Beach Calif. gets behind the wheel of the Cadillac XLR convertible with his aunt Sue Burkitt, at the Los Angeles Auto Show in Los Angeles on Friday, Nov. 21, 2008. The crowds at the show are a reluctant bunch this year. Anxious about the economy, the future of the Detroit Three automakers and the unpredictability of gas prices, few said they had any intention of buying a new car anytime soon. (AP Photo/Damian Dovarganes...
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"We're in the market if the prices were more accessible," said Vidrio, 35. "Everything's so overpriced, especially for the economy that we're in."

The crowds at the show are a reluctant bunch this year. Anxious about the economy, the future of the Detroit Three automakers and the unpredictability of gas prices, few said they had any intention of buying a new car anytime soon. Those who did said they were either downsizing or looking for something with top-notch gas mileage. Nearly all had major reservations about a bailout of the U.S. auto industry.

Mohr, 50, said that under normal circumstances, he would be looking for a new car. He recently dumped his Lexus sport utility vehicle, leaving his four-person family with just a Volkswagen Beetle.

But, as he peered at a Jeep Wrangler at the Los Angeles Convention Center, he said the economic downturn has taken a toll on his dentistry business. He's holding back on any new car purchase for at least another six months.

"We would like another car," he said. "It's a little inconvenient only having one ... but it's just not the right time."

U.S. auto sales have fallen about 14 percent in the first 10 months of the year. In October, they plunged 32 percent to the lowest rate in more than 25 years and show no signs of significant improvement anytime soon.

"People are worried in general about their job security. Anytime you start talking about recession, people will scale back their purchasing, which they have," said Lincoln Merrihew, auto analyst with the market research firm TNS. "A car is something that's fairly easy to postpone."

The crowds at the auto show, which opened to the public Friday after two days of media previews, reflected those worries. Art Sorensen, a 32-year-old landscape designer, said he was in the market for a vehicle, but business is slow now that California's construction boom has quieted. If he buys anything, it won't be at least until next summer, and whatever it is will have to be super fuel-efficient, he said.

"This is the car I came to see," Sorensen said, pointing to Honda Motor Co.'s Insight hybrid, which the Japanese automaker expects to challenge the Toyota Prius when it goes on sale next year. "I'm kind of like, do I go the diesel route, or do I go the hybrid route? Obviously both are a big step in the right direction from where I'm at right now."

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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