Why? The answer is as simple as supply and demand.

What presents itself as great news for sellers comes as unwelcome news to consumers looking to buy. You don’t have to be an economist to know that during an economic downturn most of the car-buying demand will be shifted to the used-auto market.

Granted a majority of the pent up demand from July and August of this year was focused on the new-car market but that was only because the Cash for Clunkers (C4C) program was up and running. Part of the criticism surrounding C4C was that it would dually result in a false sense of demand and cause the used-vehicle market to suffer. Critics don’t have to worry about used-car dealers anymore; demand for used vehicles is rising substantially enough that prices have risen right along with it:

One widely followed measure of used-car prices the 14-year-old Manheim Used Vehicle Value Index will likely hit a record when data for September are released in early October says Thomas Webb chief economist for Manheim Consulting a subsidiary of Cox Enterprises Inc.

Back to C4C for a moment…besides increasing sales volume C4C was designed to promote fuel-efficient vehicles. What makes the increase of used-vehicle demand particularly interesting is that the demand for large vehicles SUVs in particular are rising:

Demand seems particularly strong for used SUVs analysts say reflecting lower gas prices.

What kinds of used vehicles are selling? All kinds but particularly “gas guzzlers” says Katharine Kenny vice president of investor relations for CarMax Inc….

Back in June we wrote an article titled “Do Americans Still Want Large Vehicles?“. From the responses we got from our readers in conjunction with this latest data the answer seems to continue to be “yes.”

When gas prices soared and demand plummeted in 2008 production of large vehicles dropped dramatically. Come to 2010 2011 if you’re in the market for a two-to-three-year-old used truck or SUV it may be an expensive and difficult item to come across.