I thought with all the talk of folks trading up to '08 H2's and Alpha H3's
this article had a bit of relevance and might be of interest.

Or maybe not------

Gunner

Used car demand is on the rise
Lower new-car sales and fewer fleet purchases put the squeeze on inventory


08:35 AM CDT on Tuesday, May 8, 2007
By TERRY BOX / The Dallas Morning News
tbox@dallasnews.com

Plain old Ford Tauruses never looked so good.
The Taurus, a quick seller on many lots, and virtually all used cars and trucks are in tight supply these days. As sales at big domestic dealerships have declined in recent years – down by 40 percent or more at some stores – so have the number of vehicles that get traded in.
In addition, leasing has slowed, and automakers aren't selling as much to rental fleets. Consequently, fewer vehicles are flowing through the wholesale auctions that provide dealers with up to half of their used inventory.
Wholesale prices in the Dallas-Fort Worth market have risen 5 percent to 10 percent this year, which means most retail prices are up by at least that amount.
"Domestic dealers are hungry, and when you're hungry, you look for opportunity," said George Hoffer, a professor of economics at Virginia Commonwealth University who follows the auto industry. "Opportunity now is in used cars, and the dealers are being more aggressive in bidding them up because there just aren't as many out there."
For consumers considering a new car, this could be a good time to trade because the value of used vehicles is rising faster than the price of new cars. Most new-car prices have gone up only a couple of hundred dollars, but used-car prices increased from an average of $14,923 in 2005 to $15,518 last year, according to the National Automobile Dealers Association.
The increase is squeezing the margins on some used vehicles at a time when dealers are looking for every dollar of profit they can find. Moreover, consumers shopping for a used vehicle will probably find higher prices this spring than last.
"When prices were real low four years ago, we could buy truckloads of cars, and everything was so cheap," said Don Herring, who owns Don Herring Mitsubishi dealerships in Plano, Irving and Dallas. "As new-car sales get tougher, dealers are looking to used. So you've got higher demand for used cars when the supply is lower."
And many new-car dealers are more dependent than ever on used-car sales.
"We need to have profit centers, and we need the used-car department to be a significant one," said Sam Pack, who owns Five Star Ford in North Richland Hills, Sam Pack's Five Star Ford in Carrollton and Ford Country in Lewisville.

Profit vs. loss
[/align]According to recent NADA data, dealers lost an average of $31 per new-vehicle sale last year. Meanwhile, they earned an average net profit of $230 per vehicle on used cars and trucks, the NADA said.
"We've been saying for the last couple of years that it will be a knock-down battle on the new side and that you will need to keep the doors open with used [sales], parts and service," said Paul Taylor, chief economist at the NADA.
"What this tells me is I'm going to have to scratch the dirt a little harder for my best grains. Some of the usual supply sources for used cars are leaner than in the past."
Dealers have to work even harder to find vehicles for their certified used programs – low-mileage, late-model vehicles that often carry warranties and are priced higher than regular used vehicles. Traditionally, lots of those cars and trucks come off leases or from fleets.
"Those are important sales to a dealer because they almost take the place [in revenue] of a new-car sale," said