[Perfectlap]

tight credit equal fewer banks willing to loan. Fewer loans means people are holding onto cars longer. Fewer used cars up for sale equals higher prices.
Many of those who can qualify for a loan are being prudent and not selling their babies unless they get a pretty penny for it.

Good time to buy new.... not so good to buy used.

Which is what this economy needs now because we have a hell of a lot of pent up demand from a 3 year recession. But its not really a recession more of a loss of optimistic credit standards that kept people consuming for 5 years when their falling incomes and negative savings rates didnt justify it...but that's another subject.

But that splits people into two camps those who can afford the loan risk (and have spotless credit) for buying a new car and those who aren't willing to gamble and will stick with the old car. The latter group are keeping mechanics and auto parts stores busy. Modest income people flipping cars every 4 years is not going to be as common as it once was.