Market Conditions Commentary (Archive 2011-July)
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
7/23/2011 12:48:38 PM

The temperature was very high, but the buying passion was not as heated.  Cheap cars, under $12,000 are still as hot as the temperature, but the high dollar units, especially if they are off by any degree are nearly sale proof.  The evidence of this is the 28% conversion rate of dealer cars overall.  I sold 96%  or 575 of 596, but the net result was way  less then normal.  We could have no-saled 50% more to net a lot more, but my theory is to sell on the market dealt today and stay fresh as I am not smart enough to count on next week being better.  Forty years of wholesale experience has tattooed in the middle of my brain that the first loss is always the best.  And the first profit is the best. Fresh merch attracts motivated buyers.

Who goes to the fish market to buy yesterdays fish?  How do they smell?  Are cars any different?

by Robert Hollenshead
7/13/2011 1:24:01 PM

We are in a weird market.  It’s hot and it’s cold.  We sold just under 600 units last week at a high percentage, but with lack luster return. 

The sports car market has evaporated and the export market has disappeared with the exception of a few Canadians and the Nigerians.  The Russians are gone.  The Middle East is buying a few high mile MDXs and RSXs but not enough to mean anything. 

Good low mile Japanese units that are equipped correctly and don’t have a hit on Car Fax are on fire.  Heavy cars $40,000 north were very good but they can’t look like they came out of the lease yard.  Anything unusual is rip roaring good.  Humdrum dopey units are worthless.  If they have a hit on Car Fax they are 30% less if you want to sell…and even then it might not get a bid.