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

Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Ad Loading...
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Mitsubishi shadow line-up
Industry•by Hannah Mitchell•August 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Ad Loading...
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
Industry•August 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industry•by Hannah Mitchell•August 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
outside of car dealership with cars parked in front
Industry•by Lauren Lawrence•August 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Ad Loading...
Cars from the rear on a Shanghai freeway
Industry•by Hannah Mitchell•August 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Ad Loading...