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The automobile industry has recently been reformed and now prospering on American soil, credited to the policies of the Obama administration and the government. But these do reforms costs and with the economy still not up to par, cars will begin to cost as well, used cars to be the exact.

The trend can be explained in the following statement. There is a shortage of used cars, combined with higher demand from buyers who have lost a job, wrecked their credit scores or just become more frugal resulting in a narrowed the gap between new- and used-car prices. According to edmunds.com, the price of an used has risen 33 percent compared to new cars where the price has risen only 9 percent. The average price was $2,124 but a whopping $8,495.

During the recession, new car sales plummeted almost 6 million from 2008 to 2010. Though the sales are recovering, this caused for fewer cars to brought onto the market and people hanging onto their vehicles longer since cars, in general, are less affordable.

The used cars were and still are hard to come by as a result, causing independent and major car dealerships to suffer and raise prices. The used cars being sold to them are even depreciated, but some car owners do a better job than others of maintaining their vehicles and usually receive more than the trade-in values published on the cars they trade in.

The bright side again is that the automobile industry is turning around and cars are being depreciated at a slower rate. With car sales expected to rise to over 125 million, the future is bright for used cars sellers and the automobile industry.