• MSNBC, Wednesday, August 29, 2007 1 PM

The credit crunch in housing--including higher monthly payments for some owners and declining home values for others--is persuading many Americans that buying a car is not a good idea right now, according to CNW Marketing Research.

A recent poll shows that nearly 18% of people in the market for a car or a truck are delaying their purchases because of home-related issues, up from 9% in 2006. Other data show consumers may be turning their attention to used cars. Web site Edmunds.com says online interest in used cars is up 24% this year, while interest in luxury cars is down 19%.

Adding to the lack of enthusiasm for new cars is the fact that automakers are not offering the same enticing incentives--whether rebates or zero-percent financing options--as in years past. But Brian Bethune, an economist at Global Insight, says automakers are beginning to sweeten their sales incentives once again. Carmakers will report August sales results on Tuesday.

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