As if anyone needed a reminder of how many people are struggling with car payments -- which now average about $500 a month -- the number of vehicle repossessions in the United States hit about 1.6 million in 2007, the highest number in a decade.

And the number for 2008 is expected to go higher.

While that's obviously bad news for some, it begs a question: Will all the repossessed vehicles being dumped on the market drive down used car prices?

Major wholesale auction houses -- where many of the nation's used cars are funneled to dealers -- are reporting slightly lower wholesale prices, according to Joe Spina, senior manager of remarketing at Edmunds.com.

But Spina's hesitant to say the glut of repossessed vehicles will knock down used car prices across the board, particularly on used car lots at new-car dealerships.

"Most of the repossessed cars are typically rougher vehicles,'' he says. "Those cars typically make their way back to the 'buy-here, pay-here' dealers.''

New-car dealerships typically get their used cars from the leasing arms of manufacturers, he says. They are low-mileage vehicles that often carry the benefits of being "certified'' with an extended warranty.

Franchise dealer sales are up, Spina says. He adds that "certified pre-owned is great for the consumer and for the dealer,'' because the consumer gets a pristine used vehicle while the dealer gets a higher price -- about $1,400 more than for a noncertified vehicle of the same model and condition.

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Also, dealers are seeing more people choosing the certified used car route as an alternative to buying a more expensive new vehicle.

"People who otherwise bought new are now buying used,'' Spina says.

Meanwhile, there are signs that other segments of the used car market are experiencing changes because of the declining economy.

Sales at independent used car lots are down slightly, Spina says, and sales of used vehicles by individuals are "down a lot.''

Typically, buyers at independent lots have lower incomes and poorer credit scores. They are part of the group that feels economic woes most acutely, Spina says.

Private-party used car sales are also down. However, that downturn is more directly linked to nervousness about the economy.

"People are hanging onto their cars,'' Spina says.

Here are this week's reader questions:

• Will repo surge fuel used car bargains? • How can I fix a co-signing mistake? • Should I use a tax refund to pay down a loan? • Can I escape an upside-down car loan?

If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter.