Why are these used car prices so High (Sooooo high)

Has that thought crossed your mind as you look for a used car lately. I too as a broker / dealer have thought the same thing…and wondered what the heck… a couple of points I have noticed that give me a feel for my wholesale market, the must run true on the open market as well. I attend several local auctions and one in Seattle on a regular basis. About a year ago, the main Portland auction would be running 900 to 1500 cars every week. The Seattle sale would be 1400 to 2200…. over the last few months the Portland sale is lucky to run 600 to 700 cars and the Seattle one was way down as well. A year ago, I was able to buy 2010 Pontiac Vibes for a net wholesale or around $10,800 to 11,300 with about 25K miles. At my last sale these exact same cars are bringing net wholesale $12,800 to $13,300. Almost a $3,000 increase…crazy…yes crazy. Why you ask, I think supply and demand. At my dealer level we still have about the same number of dealers who need cars, but only about half as many cars….so every nice car gets bid up. Even the junk is selling for money I would have not thought possible, now granted metal prices are up, so the real junkers are probably going for scrap metal.

What I have noticed in the last couple of weeks which prompted me to write tonight, the volume appears to be going back up. The Portland auction last week had about 900 cars, Seattle tomorrow has over 1,500 and last week I think it was about 1,800, plus and this is the good news it appears some prices are starting to fall….just a little. And that should be good for all of us.

So keep your fingers crossed…and hopefully over this winter and by next summer the used market will be a tad more realistic, and you can buy cheaper, plus so can I…. (smile)…

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