Used car prices are higher and sales are solid in spite of the slowly improving economy, experts say, but finding enough good vehicles to put on the lots is a challenge for dealers.
"It has been a struggle," said Steve Wilson, used car manager at Capital Toyota.
Jeannine Fallon of the auto website Edmunds.com said the pattern of higher prices and supply shortages is a national one.
"It's a trend we won't see reversed anytime soon," she added.
Fallon said the average price of used vehicles is up about 10 percent this year over last, partially because of tighter supply and higher demand.
Fewer people are buying new cars and not trading in old ones, she said.
Also, buyers gravitate to used cars "when they feel the pinch," Fallon said, citing the sluggish economy.
In addition, the federal government's cash for clunkers trade-in program a year ago to stimulate new vehicle sales removed a lot of used cars from the marketplace, Fallon said. The used cars had to be scrapped.
Lee Belk, general manager for Gentry Chevrolet Buick GMC, said automakers have cut back on the production of new vehicles.
He said while used car sales are usually strong, "there's less of them to find."
Through August, used vehicle registrations in Hamilton County are about 2.5 percent above the same period last year, figures from the Clerk's Office show. Used vehicle registrations, which closely relate to sales, are outpacing new vehicle titled by about four to one in the county.
"Used cars are selling good," Wilson said.
USED VEHICLES TITLEDHamilton County - August* 2010 - 3,445* 2009 - 3,140* 2008 - 3,494* 2007 - 4,210* 2006 - 3,957Source: Hamilton County Clerk's Office
He said a lot depends on having the right inventory of good, low mileage vehicles.
"Used cars are not as plentiful right now," Wilson said.
People are being more frugal than in the past, he said. Where they might have been willing to finance a more expensive new car, many are leaning to buying used vehicles, Wilson said.
"It's still taking the least expensive route," he said.
Fallon predicted used vehicles will remain scarce for awhile. One positive trend is that leasing, which fell off for a number of years, is up again.
"When leases expire, there will be a lot of cars on the market," she said. "That may be the trigger that reverses" the used car shortage.
Fallon said Edmunds.com recommends a three-year vehicle lease to buyers.
She added that it doesn't appear the economy is going to improve sharply in the near term, and spring and summer sales of new cars weren't especially strong outside of the Memorial and Labor day weekends.