Dealers are doing what they need to do to find and keep used cars on the lot
. They are sending fewer trade-in vehicles to auction and instead are keeping them for themselves. They are also willing to pay more for a used car at auction to bring to their lots. It used to be that the ratio of used cars to new cars on the lot was 2-to-1 and now it is 3-to-1. Some car dealers are taking advantage of the used car market sales and opening car lots specifically for used car sales. Hopefully the predicted decline in the supply of newer used cars won't hurt them too badly. The auto industry has seen enough damage in the past 2 years and maybe the used car market is what they need to get back on their feet. Although used cars are built better today they do tend to need more maintenance then new ones which could mean an increase in sales at the service center. And the service center is the bloodline of the car dealer; it is how they stay alive in times of low new car sales.