Chances are we don't have to tell you money is tight. You're probably feeling it yourself.

People are having a tougher time borrowing money. Now the problem is hitting local car dealers.

Auto dealer Todd Zelinsky is definitely feeling the pinch and a struggling US economy has already taken its toll.

“It's just reduced the number of people who've got money in their pocket. People wanting to buy a $1500 car are not out there any more. That money is being used to make ends meet,” he tells us.

It's a familiar story at smaller dealerships around American. Tighter credit standards means fewer qualified buyers and that means fewer sales and less profit.

At Fresh Horses car lot on East 11^th, owner Tim Reeve has found a way around this American credit crunch. No cash. No car. Simply put, no credit.

“No financing. No we don't get mixed up in that part. I used to, but I didn't like it. I don't like to chase down debt,” Reeve explains.

As a result, his business is good. But these tough economic times are having an impact on Todd Zelinsky. He's gone from auto dealer to auto mechanic.

“People can still come up with money to fix their car. So, I have resorted to just repair. I've let everything else go as far as sales,” Zelinsky says.

It's not just the local businesses that are being hit. The Ford Motor Company has had a 35% drop in sales.