BLOOMFIELD HILLS, Mich. -

Whether it's associated with a large, public dealer group or a single buy-here, pay-here lot, matching vehicles up with financing remains one of the biggest challenges managers still face.

Recently, sister publiciation SubPrime Auto Finance News found the top boss from Penske Automotive Group and the current president of the National Independent Automobile Dealers Association discussing similar circumstances. Chairman Roger Penske's stable of more than 140 dealerships turned more than 39,000 used vehicles in the third quarter.

During a conference call last Friday when the group discussed its third-quarter performance, Penske said, "I think used-car prices have gone much, much higher than any of us expected."

He went on to discuss the financing part of turning those used models.

"As (used-vehicle prices) have gone higher, you have somewhat of a cap on profitability because the advance rates on used cars," Penske said. "When they get too high, the finance companies just won't do it. By the time you put finance costs and whatever else you're selling from an aftermarket standpoint and what the market is, the amount of financing they can offer is capped."

However Penske is expecting some price moderation as 2012 finishes.

"I think you'll start to see some deterioration. Obviously we see it normally in the fourth quarter because of the year-end. A lot of the used-car guys need to get rid of their cars and pay their banks," Penske said.

Moderating vehicle prices would be welcomed news to Chris Martin, NIADA's current president who runs a BHPH dealership in Fayetteville, N.C. Martin recently talked about the balancing act he's doing to fill inventory with units that will fit loan terms while still running properly for the duration of the contract.

"We're averaging over $1,000 a car in reconditioning cost. We're very particular and want to make sure we continue to put cars on the road that are good for our customers and good for our reputation," Martin said.

"It's as tough as I've ever seen it to try to find the kind of vehicles we need to put on our lots," Martin continued. "It's obviously still out there. We just have to work a little harder to find it. You talk to some guys and they don't seem to be having much of an issue in finding inventory. That tells me that they're just doing what they have to do to find it."