Market Conditions Commentary (Archive 2012-May)
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
5/31/2012 1:12:40 PM

So finally they figured out that cars aren’t scarce and the market is a disaster.  Great.  I have been saying for months.  There is nothing scarce relative to the wholesale market and cars…except a seller willing to sell for what the market is willing to pay, Now that is scarce.  Optimistic buying in this economy will result in unrealistic sellers at the block.  When you buy with the anticipation of a market that absorbs your optimism and it isn’t realized, you are in the proverbial world of caca.

You can call me anything you like, and you might be correct, but you won’t call me a nit wit unwilling to face the market.  I am selling regardless of circumstances.  I don’t see this market changing any time soon either.  New cars everywhere, programs galore, aged inventory that can’t get converted, and if they can’t cash up, they sure can’t buy.  That is called constipation with no reconciliation.  Here we


by Robert Hollenshead
5/26/2012 8:42:40 AM

I am an avid and very serious gardener.  I take my gardens just as serious as my businesses.  I find that a garden and a business are very similar.  They both need  ideas, skill, will, design, resources, a good location, understanding the location so you plant or stock the right things, manpower, longevity, patience, tolerance for setbacks,  commitment, and a deep natural inclination to enjoy the end result, otherwise you will lose interest and that is fertilizing with Roundup, a recipe for death.

In a garden weeds are everywhere and pop up overnight at the speed of light and twice the size of its competition, desirable plants.   If you don’t stay on top of them, they will overwhelm that garden and make you lose hope or motivation to follow your dream, a beautiful garden.   No different with cars.  Let those little mud babies lay around a second and accumulate and you will be in the hurt locker.  Pulling


by Robert Hollenshead
5/15/2012 9:23:15 AM


In the wholesale marketplace, every seller is aiming to maximize the value – or price – he receives for his vehicles. But in this selling environment, it’s sometimes difficult to know whether maximum value is being achieved for every vehicle sold, or whether situations exist where money is being left on the table. An arbitrage analysis can help a seller better understand what’s taking place in the marketplace – whether his vehicles are achieving top dollar or whether they are quickly reappearing in the wholesale selling environment and drawing significantly larger prices when they do. Such was the case for a large franchised dealership with operations in several states.

The owner suspected that there were problems stemming from its vehicle wholesaling practice.  Specifically, there were


by Robert Hollenshead
5/5/2012 9:45:20 AM



Makes You Buy Cheap as well as Deep 

and Sell Well

by Robert Hollenshead
5/2/2012 5:46:35 PM

I got lost for two weeks and haven’t been visiting with you.  Last week it seemed like we are back to Thanksgiving.  Nothing was hot from high to low, good or slop.  Absolutely no direction.  No export, no woodys on fat units, and no bottom feeders looking to steel.  Just flat nothing.  As always we sold everything because I don’t know how to do anything different.  It’s in my DNA so I don’t have a choice. If you had to dream up some non-sensical reason for a  completely lack luster market it would be the end of the month.  I say it’s stagnation without representation.  Programs on new cars, big inventories, cars that got bought for the Spring and now are growing a little moss on the north side, they are trading on new cars and a big one that will take time to prove me right or wrong. 

I have seen it through the decades and I am seeing it like crystal now.  Dealers are keeping units that don’t