Skip to comments.Is There A Shortage Of Used Cars?
Posted on 05/19/2011 9:34:41 AM PDT by Iron Munro
If you've tried to buy a used car recently -- a lot of people are finding it hard to get what they want.
There is something of a used car shortage going on. News 10NBC found out there are a number of factors why there are fewer used cars out there.
One is -- more people are holding onto their new cars longer but also, there are fewer rental cars coming on the market and fewer people are leasing vehicles so therefore -- fewer of those cars are out there.
Joan Kamisch is trading her 2000 Chevy Lumina for a shiny 2007 Dodge Caliber. I held onto it as long as I could, but it started to have a lot of repairs on it. I figured I'd rather try to purchase another vehicle instead.
She found her car but dealers say there are fewer cars at auction and therefore fewer used cars on the market.
John Iannone, owner of Auction Direct in Victor, says there is a shortage and there isn't a shortage. He has over 500 cars on the lot and sold over 300 last month alone. Rental car companies are keeping their inventory longer. People aren't leasing like they used to. So the return of used cars is short. But when you go back a few years, those record-breaking years of 2005, 2006, 2007, all those new cars are now used cars. So is there a shortage? There is. Is it over played a bit? Yes.
U.S. New Car Sales fell from 16 Million in 2007 to 10 million in 2009.
The new car market is running at roughly 11-12 million units a year. The used car market is sometimes two or three times that. Brad McAreavy is president of the Rochester Auto Dealers Association. The new car market is what feeds the used car market. And of course that used car stay in that cycle a long time. But it all starts with new cars being fed into the market. So if that number starts to decline, ultimately it's going to lead to fewer used cars in the market.
So Joan signed on the dotted line this afternoon and got the car of her dreams.
New car dealers are also affecting the used car market. As their new car inventory gets low, car makers aren't able to meet the demand -- dealers are going to auction to find cars to fill the lot.
If you're buying -- shop around. Used car prices are at an all time high -- up about 30-percent from just a few years ago.
Auction Direct says Honda has surpassed Toyota as the brand of choice for people shopping for a quality used car.
The 699,000 used cars destroyed as part of the Obamassiah's Kash-For-Klunkers program has nothing at all to do with the shortage and outrageously high prices of used cars today.
Just asking the question is racist.
Killed the engines in perfectly good used cars, so they couldn’t be ‘reused’.
Crushed, sorted, sent to China.
Kash for Klunkers was the reason.
part of the plan...destroy cars, make the ones left cost more, cause gas prices to rise,spend gas tax revenue on choo choo trains.
Ray LaHood and Barry Soetero approved.
Correct you are! I’ve been driving 1500 or less bombers for years. Use to be I could pick up a runner/driver for 3-500 bucks. Those cars are now fetching north of 1500 dollars. I paid 800 for my last car. way more than I wanted to for what I got. But it runs, drives, had new tires and the registration was good for almost a year (saves me 75 bucks for tags). Just wish the a/c worked. I tend to ware one out a year. Considering in the month I have owned this one I have put 9000 miles on it there is no way I can touch the value in a “new” or expensive “used” car.
There's yer problem! I like to buy cars that come off of 2 year leases because the mileage is usually low. Harder to find them nowadays.
Cash for Clunkers also will hurt repair shops... lots of unintended consequences drip from liberal idiocy...
There is a definite shortage. I’m looking for a 1965 Shelby Mustang GT350, and having trouble finding anything under $250,000.
yup I’ve been looking for a reasonably priced 2005-2007 Ranger 4WD for about 2 months now. very slim pickings.
Last night one of the local GM dealer’s tv ads stated that they would buy your used car even if you didn’t buy a new one from them.
With 19%, unemployment there is no shortage of anything, someone is blowing smoke up someones rear with a very short pipe.
>>>> Is There A Shortage Of Used Cars?
Is there a reason for the ‘shortage of used cars’?
Yes, I believe there is.
Obama doesn’t want you to buy any used cars. He has those shiny GM Volts at 43 grand per pop to sell.
Yours is a common tale of woe that can be heard in pubs throughout the land.
Shouldn’t it be “ARE(not is) there a shortage of Used Cars”?
probably shipping them to Japan for sale.
“Obama doesnt want you to buy any used cars. He has those shiny GM Volts at 43 grand per pop to sell.:
Heard on CNBC, propaganda arm of the DNC, that Gov’t Motors is planning to increase production of the Volt because of the demand. That is difficult to believe. More than likely, the government is buying more of its GM losers with taxpayer money...and they’ll be bragging about a “profit” soon.
How else does the government force people into EPA compliant cars than by destroying spare parts for the older ones?
I dunno. The Craigslist for my area lists hundreds of used cars on a daily basis. They’re out there, but maybe not at the bargain prices they used to ask.
There must be a hundred used car lots in Hazel Park, Michigan alone. They all seem to be bursting at the seams with cars.
And that was EXACTLY the time I needed to buy a beater for my parents (they don't do maintenance, so can turn a good car into a beater very quickly), but there WERE no beaters, so I ended up with my first car payment in thirty years. Thanks, O.
Another part of it is that overall quality has improved so much that people are holding on to their cars longer. I’ve got a Jeep thats six years old, and a Mustang that’s twelve years old, and they both look and drive like they were new.
Funny, I got an email from a dealership I leased a car from maybe 6 years ago, they claimed there was a shortage of used cars and they said if I had a car to sell to bring it in, they would make a cash offer in 15 minutes good for 7 days.
I don’t have a car to sell them, and my car isn’t even from their dealership, but I thought the email was some kind of new fangled sales pitch.
No. There is a shortage, there are shortages. The shortage is the subject, not the used cars.
We have been looking for a 10+ passenger van for a couple of years now. It is getting serious now that the current one we own is dying quickly.
I can’t even get a dealer to talk to me when they find out what I need. It is the weirdest car shopping experience of my life.
Cash fr clunkers. We have 3 vehicles right now and just about every week someone is knocking on the door and asking if the VW diesle or the Jepp 4WD truck is for sale.Noehter are and don;t have any signs on them.Also the amount people have offered us for them both are more than we paid for either of them years ago.
Democrat policies ALWAYS harm the working poor the most, don’t they....
At what point do the sheeple start to believe this, in spite of the media propaganda?
Another reason is that a lot of people are repairing, rather than replacing with new. If they don’t trade in by not buying, there will be less used cars.
Found this on a search, though - http://www.usedpassengervansforsale.com/
No. “Shortage” is singular.
One would only use the plural “are” if the sentence were expressed “are there shortages of used cars”.
BTW, it is arguably incorrect and certainly unconventional to capitalize used cars.
I just see red “x”s
Yep Cash for clunkers is the reason.I honestly think he did it on purpose to force lower middle class into public transportation faster.If you do find a car for sale they are about 3X what they were 2 years ago used.We have 3 vehicles right now and just about every week someone is knocking on the door and asking if the VW diesel or the Jeep 4WD truck is for sale.Neither are and don’t have any signs on them.Also the amount people have offered us for them both are more than we paid for either of them years ago.
I turned a car thread into an English Grammer thread.
9000 miles a month? Wow man. Definitely you are making out buying ultra used... You are paying, what, a penny a mile for the car?
I know what you mean. I have a 19 year old Chevy pick up that looks and drives like it has 265,000 miles on it. :)
One of my favorite movies!
It warms my heart that anyone cares about grammar! The answer to your question is no: the subject of the title is "shortage," not "cars," so "is" is correct.
The earthquake and tsunami didn’t help either, creating a shortage of compact Japanese cars and repair parts for existing cars.
Touting the the administrations commitment to environmentally-friendly technology and to fueling green jobs, President Obama announced that the government will purchase 5,600 hybrid vehicles for the federal fleet including 100 of the first Chevrolet Volt plug-in hybrids to roll off the assembly line.
The only good thing about Cash for Clunkers is that it got a lot of Obama stickers off the road...
Traded a 2003 4runner a few months back for a 2007 4runner. Got more than I would have accepted for my trade-in and paid less than I would have paid for the “new” one. The next day they had my trade-in on the web priced at 42% more than they gave me.
This explains why the dealership from which I bought my Toyota Rav4 as a new car in 2009 has sent me at least 25 e-mails asking me to sell it back to them. When I told the salesman it only had 4,000 miles on it, he doubled his effort. I admit I enjoyed frustrating him!
It's grammar, dammit.
The English Grammer was a 4 cylinder version of the AMC Gremlin. It was not a success, nor was the English Moatadoor, their version of the Matador.
That was in 1964 but VIN is stamped as ‘65
Multiple factors are at play. First, C4C reduced supply of vehicles. Second, the Japanese auto and auto parts industry are operating at a fraction of capacity. There’s a shortage of new Japanese cars, and the supply pressure in the new car market causes some demand to move to the used car market. Third, since the recession took hold in 2008, a large segment of erstwhile new car buyers has been forced into the used car market due to household budget and credit constraints. Individuals can’t spend with abandon like governments can, but when they crowd the low-end of the market, prices rise.
Lower Supply + Larger Demand —> Higher Prices
Obama and Helicopter Ben can try to evade the law of supply and demand, but they might as well try to repeal the laws of thermodynamics.
NB: Who got hurt by C4C? The working poor who need cheap automotive transportation and the frugal middle class. Until the Japanese tsunami, the well-off enjoyed fairly competitive prices in the new car market and ample credit at extraordinarily low interest rates. Of course, the private-jet progressive ruling elites think the little people shouldn’t be driving CO2-belching cars anyway.
First car I ever drove by myself was a 64 1/2 Mustang. Still love those cars.
As for buying as opposed to repairing, it’s a lot cheaper to put out a few hundred every now and then than to make a payment every month. My wife bought the 2007 4runner. I have a Volvo and RAV4 that are paid for. I repair them when needed.
I was offered $3,000 not long ago for the RAV4. It’s got 190,000 miles on it. Probably should have taken it but I bought it new in 1996 and it has a special place in my heart. Besides, when I bought I said I hoped to put 200,000 miles on it.