agent Entrepreneur logo
MenuMENU
SearchSEARCH

Smaller Used-vehicle Supply Boosts Wholesale Prices in 2009

January 4, 2010
2 min to read


McLEAN, Va. — About 8 million fewer used cars and trucks entered the U.S. market over the past two years, resulting in higher used-vehicle prices every month in 2009, according to the latest AuctionNet data of wholesale transaction prices.

AuctionNet is a joint partnership between the N.A.D.A. Official Used Car Guide and the National Auto Auction Association.

Ad Loading...

“There were several reasons for the decline in used-vehicle inventory: Dramatically lower new-car sales in 2008, as well as fewer trade-ins, off-lease vehicles, and rental-fleet vehicles in 2009,” said Paul Taylor, National Automobile Dealers Association’s chief economist.

But Taylor notes the popular Cash for Clunkers incentive was not a reason for the increase in used-car prices month-over-month from January through November 2009. “The Cash for Clunkers program removed only 690,000 used vehicles from the marketplace, and these clunker vehicles were largely undesirable anyway. Even if these vehicles hadn’t been recycled under the program, their worth as trade-ins was modest,” he said.

With new-vehicle sales expected to increase some 15 percent in 2010, Taylor estimates an additional 1.1 million used-cars and trucks will be traded-in at new-car dealerships compared with 2009.

“We’ll start to see an ease to the used-car shortage, but it will be several years before the supply returns to the average of the 1998-2007 period of strong new-car sales,” Taylor said.

“As 2010 gets underway, the short supply of used vehicles means a narrow spread between new- and used-car prices, so expect new-car sales to be a greater share of the sales mix, and certified and other used cars to be a relatively smaller share compared to the last decade.”

Ad Loading...

Before 2008, used cars were profitable every year since 1980. In 2008, dealerships saw on average a net loss of $5 per used vehicle retailed as gasoline prices first surged to $4.11 per gallon nationally, then fell to less than $2 per gallon later that year.

“Because of whipsaw gasoline prices, used-car and new-car inventory were mismatched to consumer demand in 2008,” says Taylor. “Gas prices will be flat or inch up modestly as the economy recovers in 2010, suggesting a more stable mix of used-car and new-car demand.”

More Industry

Photo of Cadillac Lyriq SUV on road with partly cloudy sky in background
Industryby Hannah MitchellApril 16, 2026

Used Autos Selling for More

A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.

Read More →
Photo of facade of Waldorf Toyota car dealership
Industryby Hannah MitchellApril 16, 2026

Maryland Auto Group Sells

A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.

Read More →
Photo of several cars on lifts in a service center
Industryby Hannah MitchellApril 9, 2026

Franchised Dealers Stand to Gain Service Business

Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.

Read More →
Ad Loading...
Photo of office desk with open laptop on it and an empty chair next to it
IndustryApril 9, 2026

What Matters Most in Building Your Agency

The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.

Read More →
car with hood open, an arm holding a wrench, The most loyal generation text, Agent Entrepreneur logo
Industryby Lauren LawrenceApril 9, 2026

Service Drives Gen Z Loyalty

The dealership profit center plays an important role in customer retention, and generation Z customers are showing the highest loyalty rates, based on recent CDK Global data.

Read More →
Photo of man with most of his face hidden as he types on a computer keyboard
Industryby Hannah MitchellApril 2, 2026

Fake Auto Dealer Websites Frauding Consumers

The Point Predictive study traced a pattern across more than 100 websites it believes are being developed by an international theft ring.

Read More →
Ad Loading...
photo of Volkswagen vehicle steering wheel and interior
Industryby Hannah MitchellApril 1, 2026

One of Earliest U.S. Auto Dealers Exits

The sale of two Minnesota franchises ends a rare multigenerational business while adding to one of the Midwest’s biggest auto groups.

Read More →
chart showing the quarterly electric vehicle market share from 2020-2025
Industryby Lauren LawrenceMarch 27, 2026

EV Sales Slide While Hybrids Climb

California, as usual, led the country in EV registrations in the fourth quarter, but the U.S. as a whole saw a 43% year-over-year volume decrease.

Read More →
Photo of new car's tail light
Industryby Hannah MitchellMarch 26, 2026

New-Vehicle Sales Ride Tax Returns Wave

Forecasts show that the spring sales season is rising above overriding economic concerns, among them continuously rising car prices, trade tariffs, elevated interest rates, and now a war.

Read More →
Ad Loading...
Photo of Toyota car parked in front of a Toyota dealership
Industryby Hannah MitchellMarch 23, 2026

2025 Dealership Buy-Sells a Record

The Kerrigan Index shows that despite a chaotic year of musical trade tariffs, high vehicle prices and more roadblocks, acquirers still flush with pandemic-era cash accelerated the consolidation pace.

Read More →