Dealers and used-car managers are making lemonade.
During an Automotive News webinar on the used-car market Tuesday, Tom Webb, chief economist at Manheim Consulting, ran through a laundry list of why the supply of used cars has been and will remain tight.
One new one: Dealers are keeping more trade-ins.
It started with dealers, unable to get as many good nearly new cars as they'd like, deciding to keep more of the supposedly less-desirable trade-ins: Older vehicles and those with more miles on the odometer than the dealer had typically kept.
Dealers have found they can make good money selling those cars, says Webb. He predicts dealers may continue to keep and retail older trade-ins, further reducing the supply of vehicles to auctions.
To learn more of Webb's insights and those from Dale Pollak, founder of vAuto and the other presenter at the webinar, http://www.autonews.com/webinar0621