According to reports by Wall Street Journal, Fox News and Yahoo, the demand for used cars is rising rapidly.
The used car market is so tight these days that an advertisement about the same on Craigslist would immediately get a response from a car dealer or buyer.
Doug Waikem, the owner of seven new-car dealerships in Stark County told the Wall Street Journal, Fox News and Yahoo that used cars is the business to invest right now because it brings in big bucks.
"In normal times, there are 24 million vehicles (nationally) on the road under seven years of age," Waikem said. "This year, there are only 20 million and that's a 20 percent decrease. When you take that out of the marketplace, it's going to create a huge shortage of used cars."
Waikem said Craigslist is a good place to look for people selling used cars. Most of the sellers are young and looking to sell off their vehicle quickly. They use their cell phones to do most of their business so Waikem has devised a way that sends an automatic message to the sellers as soon as they post their ad informing them that he is interested in buying their car and is willing to pay retail. The seller then gives them a virtual appraisal. If Waikem feels the car is not good enough to buy, he gives them a $15 gas card.
Waikem reveals that in his 37 years of being in this business, he hasn't seen anything as profitable as this.
Joe Brocato, sales manager for Denny's Auto Sales, echoes similar thoughts.
"The supply of cars is tight and they are expensive because the demand remains high," Brocato said. "Some 2009 models, for example, are selling for $1,500 to $2,000 more than they did a year ago."
