SANDY: DRIVES USED CAR PRICES HIGHER

Edmunds.com the car-buying guide predicts hkes of as much as $700. to $1,000 on some makes and models of used cars, trucks, and suv's. Considering that most new and used car dealers make the bulk of their profits from January-May when tax refund checks arrive in the mail now is the time of year they are searching for inventory. Flooding, and other damages from the massive weather system destroyed approximately 100,000 vehicles according to the National Automobile Dealers Association. Fewer, cars on the road means fewer cars to be traded in for a newer model. Sandy's supply squeeze comes at a time when most used car prices have been rising by at least 20% over the past (3) years according to the NADA. Consumers have been holding on to their vehicles partly because of tough economic conditions and partly because of stiff credit requirements that often times will not allow their loans to be approved due to length of time on the job past credit problems. It used to be the average family traded cars every 3. to 5 years. Currently, families often wait 4 to 7 years and the trade'in has very little or no value. The forces the dealership to allow very little trade'in allowance forceing the consumer to borrow more money and have a higher monthly payment. It seems like the perfect storm for used car dealers based on supply and demand but even dealers are having a tough time finding excellent low mileage vehicles for resale. Stephen C. Webb owner of Stevescars.com owns a small used car lot in Paducah, Kentucky. He has resorted to combing police impound auctions seeking vehicles that have been impounded by law enforement agencies and reselling them on his lot of 15 years. He recommends when purchaseing a used vehicle spend the 45.00 and order a vehicle history report to check for flood damaged vehicles. Finally, some used car analysts recommend this could be the time to buy new. The difference in the monthly payment not to mention a new car warranty often times make the savvy consumer to purchase a more up-to-date vehicle with all of the new gadgets and toys installed.