The auto industry's no-interest deals on new-car sales have almost become a fact of business life since last fall's big splash. But in

boosting new car sales, the no-interest offers have cut into the higher-profit used-car business, industry officials say. And total car

sales continue to languish this year, according to the Orlando Sentinel.

Amid a sluggish economy, uncertain stock market and the threat of war, many people have tightened their purse strings and curtailed big purchases such as automobiles, the Sentinel reports. Even so, now that automakers have extended the no-interest incentives through the end of the year, dealers hope the new car business will remain healthy.

"The incentives have done a great job at pulling

business in," Joe Chavara, president of the Central Florida Automobile Dealers Association and president of Central Florida Lincoln Mercury in Orlando, told the Sentinel. "There has been some concern out there because of the overall economy and the threat of war, but now the stock market is

doing better, and the Fed has cut rates again. So we think November is going to be a really good sales month."

Chavara acknowledged that customers are getting conditioned to the no-interest deals, creating an ongoing challenge for the industry. That's especially true for the used-car business, which continues to lose sales as customers go for the new-car financing deals, according to the Sentinel.

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