Augusta car dealers are slamming the door on the perception that there's no money to lend to people who want to buy a car.

Perry Osman, the owner of Fairway Ford in Evans, is irritated at the notion that a credit crunch has permeated his industry and customers can't buy cars -- keeping them from even walking into his dealership.

"As far as a credit squeeze, I think it is ill-reported by the national press that you can't go to a car dealership and get a car loan," he said. "Our economy is sluggish because people aren't spending the money. And when people think they can't borrow money when they need to purchase a vehicle and whatever else, it isn't doing any good to the economy."

Wayne Sanders was selling six cars a week at his new Peach Orchard Road used car dealership, Auto Max. Then the stock market crashed last week, and few customers came calling.

It is an uneasy silence in contrast to a summer filled with a high demand by people downsizing from gas guzzlers to more fuel-efficient vehicles.

Even in the auto lending subprime market, Mr. Sanders said there is money to lend to car buyers.

"It is just money down, really. I had a lady here this morning that qualified, but I couldn't get any money down out of her," Mr. Sanders said.

The terms have tightened, he said, with his lenders dropping the percentage of a vehicle that they're willing to finance: 90 percent of the car's value as opposed to 140 percent.

"The lenders have tightened. The people we could get approved for a car loan six months ago, the approvals have changed. The terms may have changed," said Rick Taylor, the vice president of Taylor Auto Group.

Where lenders were willing to extend 72-month loans, they've retreated to more normal terms of 60 months, he said.

Down payments are being required, and the loan-to-value ratio from the prime lenders also has dropped.

"It doesn't mean there's no money out there; it is just out for fewer people," said Andy Jones, the president of the Gerald Jones Dealer Group. "But if somebody is scared and they got $10,000, they're not going to put $2,000 down on a car."

Local banks also say they have money for car loans. Ron Thigpen, the chief financial officer for Georgia Bank & Trust, said lending standards remain the same.

Mr. Jones said he has not had any trouble getting "floor-plan" financing, the credit that is used by dealers to stock their inventory.

The National Automobile Dealers Association predicted two weeks ago that as many as 600 of the group's 20,770 dealerships could shut their doors this year because of lower sales.

"It will right itself, cure itself. Dealers are reducing overhead and as much inventory as they can. Most dealers are pretty smart, and they'll figure a way to get through it," Mr. Taylor said.

Battered by news of a national credit crunch and high-profile car dealerships going bankrupt, Mr. Jones said sales have been "OK," mostly because his dealership specializes in fuel-efficient cars. And he has not had to cut staff.

Jim Bernstein, the general manager at Milton Ruben Auto Mall, has been trying to keep his salespeople thinking positively. Automakers are offering rebates to entice buyers to visit the dealerships.

"From a buyer standpoint, it is a very good time to do business," Mr. Bernstein said. They're giving heavy rebates for the consumer, so we'll buy them and clear our lots."

Reach Tim Rausch at (706) 823-3352 or timothy.rausch@augustachronicle.com.