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 earthquake and tsunami didn’t help either, creating a shortage of compact Japanese cars and repair parts for existing cars.
Touting the the administration’s 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.
http://www.chevroletinthenews.com/obama-gets-first-pick-of-new-chevrolet-volts/
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.
LOL!
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.
lol
I have an old Chevy PU truck that is about 25 yrs old and constantly get offers with it just sitting in the yard. Also get offers at the gas station every time I gas it up, which isn’t often any more. Instead I drive my 91 Nissan PU that gets 28mpg.
Hubby’s car finally gave up the ghost with 225,000 on it earlier this month. We paid almost the same amount for the car we just bought as we did for my car bought in August of 2009. Same model, except Hubby’s is a 2011. Mine is the 2009 Limited version and a V6, fully loaded. Hubby’s is the next style type down and a 4 cylinder. His had over 20K miles on it at purchase, mine had 10K miles on it at purchase. Paid about the same 20 months apart. Couldn’t even find a Limited V6 for sale. Is there a shortage, and have prices gone up? YES.
Joan Kamisch is trading her 2000 Chevy Lumina for a shiny 2007 Dodge Caliber.
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What? Why in the world would anyone want to trade DOWN?
What a dummy.
But, but, it’s “shiny.” And new. And the other one was older, and she probably “deserves” it. /s
Seriously, I’m with you. Drive it until it falls apart.
What, exactly, makes you think the consequences are unintended?
Dunno, isn’t shortage singular?
I’ve noticed a lot more salvage title cars on Craigslust lately.
And they’re often not advertised that way . be careful and make sure they have no ABS light on and that all airbags have been replaced CORRECTLY.
The gal who traded in her 2000 Chevy Lumina for a 2007 Dodge Caliber to get away from a lot of repair bills, I believe, has not succeeded. That crap car has a terrible track record. Won’t be long before it starts needing repairs.
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