Dealers scramble to find pre-owned cars & vans

The Cash for Clunkers scheme put cash in the pockets of new car dealers this summer but left used car dealers scrambling to find pre-owned cars and trucks to sell. There was also increased pressure on car rental and van rental agencies which benefit from a steady flow of new and used vehicles in the markets.

“The problem is we have a demand when we have no supply,” said Kevin Smith of Springfield Auto Mart. He said his inventory of used vehicles is down 50 percent from normal levels.

Marilyn Miller, executive director of the Vermont Automobile Dealers Association, said the downside of the Cash for Clunkers programs is that used cars dealers are having trouble getting their hands on good used vehicles.

“Obviously, the whole point of the Cash for Clunkers was to try to move a lot of those less fuel-efficient vehicles and get them of the roads,” Miller said, “so there are fewer of them available.”

The Cash for Clunkers program took a large number of gas guzzling SUVs and large pickups off the road. But with the return of lower gasoline prices, those older vehicles are in demand and in short supply.

“It’s hard to find a good sport utility or truck that you can sell for $5,000 because there’s nothing around,” said Bill Lowery of Lowery’s Auto Sales in Montpelier.

Lowery said that’s in stark contrast the soaring gasoline prices of a year ago when he couldn’t give SUVs away.

Citing Vermont Department of Motor Vehicle figures, Miller said 49,334 used cars and 19,667 pickups were sold in 2008. No figures are currently available for 2009.

Adding to the inventory problem for dealers is tighter credit for their customers.