by
Robert Hollenshead
8/28/2011 4:26:15 PM
This week was another week of fighting through the market change. A bunch of turn with very little earn. It is my experience that we need to sell through the change. The bold might hold, but they will won't get sold and when it's time to buy more their check books are looking mighty sore. I am ready to buy anything that comes at me...on the new money.
We sold 576 units this week with anemic profit. I sold 96% of the units that hit our recon shop. The auction sold 43% which I believe is an all time low. At least in the past 39 years I have been selling in Lancaster, Pa.
As usual, any unit that doesn't look like it can from a reject lease lot or a rental company with a pinstripe, gets action. Under ten G units are totally sellable. Merch over 30G has to be tits, or get ready to throw MMR in the trash, or get your no-sale fog
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by
Robert Hollenshead
8/20/2011 3:09:31 PM
Make no mistake, the annual model year change has happened.
I sold 639 units this week and there were few exceptions to the reality,
it is 2012 in the car business. Every car is a year older. If you
appraise, trade, buy and sell like that you will find smooth sailing. If
you go into this market in denial, you will get your rear end handed to you. It may be in the form of looking on Craig's List want ads for a new
job, or in the form of digging into the retirement account to make checks good,
depending on your job description, but either way it will happen. We are
in a no luck, no mercy market. If you count on getting a moon
shot for anything other then a one in a hundred unit, be prepared for a
disappointment.
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by
Robert Hollenshead
8/13/2011 9:11:34 AM
There is no question the stock market has let some air out of the wholesale market balloon. It's not that there is less action, it's that they run out of gas long before you would like them to. The auctioneers all are saying the same thing. There is no gusto in the bidders psyche. The out of towners, guys that travel the country buying have become a little sissified. Their testosterone is missing. That translates into less action that translates into less money. That translates into pathetic dealer auction sale conversions.
Anybody can sell trash. Skill,trust, knowledge and balls get involved when it comes to the world I live in. Luck ain't involved. Shmeaks don't work. The trick bag is played out and reality is on the plate. Passing the buck is the new auction and rep service out. Otherwise you have
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by
Robert Hollenshead
8/7/2011 9:23:30 AM
The market change is on. Incentives are kicking in. There are many instances where units are simply unsellable based on the logic that was used when they were bought.
My theory is sell straight through so you know what the real money is, adjust your brain and attack accordingly. Buy smart to the current situation, never hold trying to outsmart trends. That's what we did and it shook out at 93% of 624 units and an average net. From my experience it is exactly where I like to be when the market is flipping.
High-line was very good for non-lease return looking cars. Anything with a little look or stuff that is a little older is red hot. Sports cars and coupes are thousands under where they were two weeks ago. Good loaded domestics are ripping good and the right SUVs, loaded up in and in color, are irrationally good. I can't figure it out, but Highlanders have been
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by
Robert Hollenshead
8/1/2011 6:21:26 AM
America is on the brink of disaster with our incredible debt situation. In my opinion, it is having a direct influence on the market in particular the heavier cars. It's not in dealers conversation, but I think it has a subliminal psychological affect. I know you might say it is the model year change and of course that is true, but I see buyers with less intestinal fortitude then normal.
The auction conversion rate is the lowest it has ever been, 45%. There was no holiday. No snow. No hurricane. No 911. There was nothing that over the 38 years
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