There is no question this philosophy works tremendously well in a normal market to feed all profit centers by shaving a little front-end margin; however not when acquisition cost continues to rise, and it will for some time. This is a demand-driven phenomenon but NOT from consumers. The demand for used cars is driven by dealers, and it is driving the acquisition price up. This will not change until the new car supply-side changes significantly.Why are dealers driving up the acquisition price? It is simple. The shortage of new car supply is driving dealers’ demand for used inventory to fill their lots. Consequently, the cost of acquisition is rising and will continue to stay high long after consumer demand softens. If consumers were driving this demand and the associated cost of acquisition, the retail price would be rising just as quickly. It is not.