Market Conditions Commentary (Archive 2011-December)
With nearly 40 years in the wholesale automobile business, our founder Robert Hollenshead offers his insights on the market and where it is going -- info to help your business succeed!
by Robert Hollenshead
12/29/2011 4:15:12 PM

Party hardy in lane 14 Friday

We are in lane 14 tomorrow due to the Holiday schedule.  Our lane, where every day is a Holiday and every meal is a feast, every night is a Saturday night and never a car is a beast, will light up at 9AM and will run into the mid-afternoon.  

We are partying a bit early tomorrow.  We are passing out $10,000 in prizes.  You must be present to win.  It will start early and end late.  If you’re the winner on-line, we will contact you to deliver your prize.  Sheikh is in charge of the follow-up for simulcast winners.  His cell is 762 666 8888 (don’t tell him how you got the number, please).

This is our 20,000th unit sold for 2011  topped with the New Year Celebration.  If nothing else it should be fun to watch.  Plugs are all getting pulled, sparkling spirits will be on hand.  If I happen to get drunk early, don’t blame me.  I didn’t get the knick name

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by Robert Hollenshead
12/28/2011 8:24:24 AM

I got confirmation from my dear friend Dave Jacobs (the only man I have ever met that actually has a photographic memory), owner of Charles and Sons, Abe from Hatt Motors (a bonified exporter for the past 30 years) as well as Irwin Dillonburger (who as we all know in the wholesale business, will never teach etiquette for Emily Post, but is brilliant) from Malibu Auto, that the news you will read below is fact.  There was none of the normal African buyers anywhere to be found at the sale.  I didn't have one in the past two weeks in my lanes either.  Let me explain a bit.

Skyline AA, Bordentown AA, and my lane late in the day when we are selling the “Low Line Sale” are all packed with buyers that export to Nigeria and the rest of West Africa.  It’s over.  What a disaster for us, the sellers.  It is the last real export market that has been blowing wind in our sails.  For many years they have been consistently buying

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by Robert Hollenshead
12/27/2011 10:41:10 AM

This is it.  Friday  we celebrate our world record 20,000 units sold this year at Manheim, Pa..  Never happened before (or remotely close by multiples) and I feel sure it could never happen again.  The pity is that the auction is not celebrating with us.  So, here’s what to expect form us: Champaign, $10,000 in real giveaways, and a kiss for any dealer we have done business with…that wants one…otherwise be happy with what we are giving away, and a pile of cars worth the candy.  We should have at least 400 to wrap up the year.

So come one, come all, to the greatest car auction and show on earth.  We want to end with a bang, not a whisper.   And we are coming in as if it were already Spring.  I wish I was smart enough to predict the market or had enough self-respect to take a vacation, but it’s just not in me.  I’m too dumb to predict how the market will be and I can’t show up at an auction with my guns

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by Robert Hollenshead
12/26/2011 3:24:44 PM

First I want to thank all the dealers that have done business with us this year. YTD  I sold 24,080 units total and 20,253 at Manheim Auto Auction in the 17545.  Not that anybody cares or even knows it, but it is a new record for Manheim.  I don’t see how this particular record will be broken due the direction the live auction business is headed.

Next, the market:  This week could have been worse.  New Car dealer action at the auction was terrible, but Used  dealers were digging their heals in.  Car Max, Car Sense, Kar Smart, Texas Direct, Minnesota guys, were all in play this week.  Thank you all and thank God we had weather that was conducive to a market. 

We sold 571 units, at a smidge over mile adjusted MMR, average price per unit $19,000, and just under $10,000,000 in gross revenue.  Lexus were a touch off with the exception of GXs.  Everything in MB was good except

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by Robert Hollenshead
12/17/2011 12:40:41 PM

This looks like it will be a December to remember as we will buy and sell over 2,000 units this month.  My guess is that this has never occurred from a single location in wholesale history proving once again that the 17545 is the Wall Street of wholesale automobiles.

However, there are some atypical things happening.  Over the past eight to ten years we have relied on a rebound in the junk market ($3,000-$8,000).  It is not there this season.  It typically starts after Thanksgiving when dealers are stocking trash to get ready for the tax check season.  It’s not happening.  This has always given us a good shot to help get through this time of year.  The $1,800 Taurus brings $3,200 for a few months.

The export market has completely evaporated.  Even Canada is a none-issue despite the US dollar being worthless against the Canadian currency.  They just are not looking this direction to buy in a way that makes any dent in

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