AVON, Ind. -- No customer voices competed with the harmony of "Silly Love Songs" flowing from the showroom speakers at Danville Chrysler Dodge Jeep.

A competitor's blue-cross emblem beckoned through the windows from the dealership across the street. But Dugan Chevrolet Pontiac didn't see many customers on that lazy afternoon either.

Downtime like this has become more common for the two suburban Indianapolis dealerships, which have waged a friendly competition for more than 40 years.

"You feel for the guy across the street, the same as you do yourself," said Danville Chrysler co-owner Gary Houser.

General Motors Corp. and Chrysler LLC say they have burned through a combined $34.6 billion of cash in the first nine months of this year, as U.S. auto sales have plummeted to the lowest level in more than 25 years.

Both dealerships' owners have seen the downturn firsthand, and they've shared plenty of grief as frozen credit markets have made it harder for customers with average or poor credit to buy. Those with good credit are worried about the economy and curbing their spending. Tougher terms and higher rates also have hampered the financing dealers use to stock their lots.

GM said its sales last month, if adjusted for population growth, were the worst since World War II.

"It's nuclear winter," said Sheldon Sandler, managing director of Bel Air Partners, a New Jersey investment firm that advises car dealers. "There's absolutely nothing going right."

Dugan Chevrolet used to carry about 450 new and used vehicles on its lot. Now, its down to between 250 and 275, said co-owner J.R. Dugan.

"I would say over the last two years, our sales have declined over 60 percent," he said.

Danville Chrysler spent several million dollars building a new home across busy U.S. 36 from Dugan. The dealership moved to the corner lot in January, when rising gas prices and weakening consumer confidence started pulling sales toward today's abysmal levels.

"I don't see how they stay in business myself," Avon resident Jeff Rhodes said as he and some golfing buddies ate lunch at a nearby Wendy's restaurant. "I don't see 'em selling many cars, I really don't."

Houser said slow sales have forced him to trim inventory on his Chrysler lot and have strained his cash reserves.

"Our sales are not anywhere where we would like them to be, but it's not dead," he said.

The surge in pump prices, which peaked above $4 a gallon in July, pinched dealers as demand spiked for smaller, fuel-efficient cars and created inventory mismatches. Some dealers reported having a seven-day supply of the Toyota Prius when they should have had a 60-day supply. Meanwhile, SUVs were piling up and quickly losing value.