I’ve touched on the price increases affecting used SUVs and trucks before. But things are reaching almost epic proportions here in mid-August, 2009. Wholesalers stand around at auctions shaking their heads at the insane prices they’re paying-then raise their hands and push the bid even higher. When you see wholesale bids surpassing retail bluebook numbers by a thousand or more, though, you just gotta ask: how long can this continue?

I wish I knew, for these numbers are (in the short term, anyway), unsustainable. Out of a dozen used cars, trucks, and SUVs I’ve sold to clients over the past 45 days, only two where at or below NADA bluebook. And I wasn’t ripping peoples’ heads off; my clients helped me pick and buy said vehicles, and my profit averaged just $500.

Thankfully these folk all had good credit and either owned trades with equity or had cash to put down; otherwise neither bank nor credit union would have touched them. Once Cash for Clunkers runs out, prices may decrease, but in the meanwhile, it’s tough sledding for all of us.

These anecdotal stories are reflected in data from Manheim, the world’s largest auction company (see chart); and show no signs of drop.

Now, there are plenty of vehicles priced at or below book. But many of these are models people don’t want, or-if they are hot items-cheap because they’ve been in an accident (all don’t show up on CARFAX) or have high miles, the wrong transmission, etc. If it’s clean and straight, it’s nigh on untouchable at auction.

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