The State of the Used Car Industry

I find that a lot of people are confused about the state of the used car industry and in particular pricing and availability. Because the new car dealers are not selling as many new cars as they used to, they are selling more used cars then ever. When they take a car in on trade that they normally would have wholesaled at auction or to any number of used car dealers they are keeping it if it's any good at all. Unfortunatly, what then happens is, there are less quality used cars available . Not only are the used car dealers trying to buy these cars at auction, but the new car dealers as well. This drives the market like nothing else. Pure and simple supply and demand. Interestingly enough, the banks,finance companies and marketing companies such as Kelly Blue Book and Edmonds have not adjusted thier values to coincide with the market trends. As a result people who are trying to be informed buyers by using these tools are actually misinformed