AMARILLO, TEXAS -- It's almost the perfect storm when it comes to the price of used cars going up across the country.
Demand for smaller cars and hybrids, the dwindling number on the supply side and an increase in demand is sending used car prices to record highs.
Low numbers of new production over the past few years translates into fewer used cars, and in turn fewer trade-ins being available.
Japan's earthquake created a shortage of new and used vehicles on the market and the cash for clunkers program is also being blamed for the shortage, according to Lee Gage, with Pete's Car Smart.
"It's been estimated that somewhere around 700,000 vehicles were sold, they had to be new cars, and you weren't seeing any trades...there goes your used car supply right there...so....I don't know how much stock I put in it, but I've read articles and it makes sense."
The manager of Kelley's Blue Book which posts fair market values for cars says it's going to remain a seller's market with customer's paying a premium for good new or used vehicles.
