Rental car companies were doing their best to keep up with demand as each returned car is quickly snatched up. One rental car company noted it had to start “turning people away.”
Demand is 30-50 percent higher year over year, as locals and businesses look to satisfy transportation needs.
Wholesale used-vehicle prices in June averaged $10,278 – down 2.6 percent from May and up 1.4 percent versus prior year. The mid-size cars and minivans segments saw significant price declines last month.
Kelley Blue Book data shows Toyota brand consideration rebounds higher than pre-recall levels.
Wholesale used-vehicle prices in February averaged $10,138, a 3 percent increase from November 2009 and an 8.3 percent increase from the prior year. This is the first time since July 2009 that average prices have topped $10,000.
The new-vehicle retail market is expected to grow in 2010, with trade-in volume at dealerships improving, but the used-car retail market is expected to remain flat this year.
"Dealers as well as remarketers can view the strength of new- and used-vehicle sales in December as a good precursor to retail demand during the tax season," said Adesa's Tom Kontos in his latest Kommentary.
KAR Auction Services Inc. made its trading debut Dec. 11, 2009, despite making less than expected through its IPO in what was to be used to shrink the company's heavy debt load.
Lower new-car sales in 2008, along with fewer trade-ins, off-lease vehicles, and rental fleet vehicles last year contribute to a shortage in used vehicles.
With the limited supply of used vehicles, shoppers can save as much as $8,460 by purchasing a new car instead of a used version of the same vehicle.