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I think the movie you're talking about is Avalon by Barry Levinson, who also made Diner. In fact, in one scene in Avalon, the kid looks out the back window of the car to see them installing the diner from Diner.
That movie has a great scene in which the family sits enthralled by their first TV, staring at a test pattern. The grandfather finally says that to him, it doesn't have what radio has.
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