In 2010, many factors are driving up wholesale prices for used cars, with reduced supply being among the most crucial issues.
First, with the disruption of leasing plans in 2008 and 2009 by some OEM captive finance companies, according to Manheim Consulting, the number of new car leases provided in 2009 reach the lowest level since leasing began in the early 1980s. By reading this article you can get the best information about cottrell trailer products.
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Second, in the last two decades, automotive manufacturers have reduced the amount of guaranteed buy-back automobiles offered to rental businesses. The result: fewer used rental cars and off-lease cars flowing to auction from automobile manufacturers and their captive finance companies.
Also, the weak economy and tight credit of 2009 pushed new car sales and car production to the lowest level in 27 years, leading to fewer used car trade-ins. In addition to this, a few high profile product recalls maintained many cars out there in the first quarter of this year.
The combination of all these factors has constrained the supply of quality used cars. Some experts forecast used car supply will improve by mid-2011, but with fewer products available in the immediate future, and prices increasing, used car sales managers must look further for stock.
More used car dealers and marketers are looking for the late-model stock from auto auctions far beyond their usual 200-500 mile trading place. A first-quarter 2010 poll of used car dealers confirmed that automobile traders were increasingly turning to the World Wide Web to find inventory for their own lots.