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Real car buyers and sellers are gambler degenerates by nature - Sep 25, 2011
by
Robert Hollenshead
Sep 25 2011 10:16AM
Have you ever been to Macao or Monte Carlo and watched someone play for $10,000,000 in a six hour period. It don’t happen often, but it is very exciting. I do it every Friday. We need the arena to be set. Merch, ready, set (by logical arrangement to maintain interest) and an auctioneer that can count, to go……..and SIMULCAST. These are the pixels that create a picture of a real trading floor for today’s reality.
Real car buyers and sellers are gambler degenerates by nature. They will go anywhere at any time under any circumstance if they had an inclination they will pinch some merch worth the money and they might win, or they heard someone else won. That is why the race track works and the casinos are full. It’s natural, and innate in certain people. If a cat knows you are pulling the trigger every time the hammer hits the table, they will pay attention. It makes the juggler vein move. Unless you are brain dead, it is exciting. It’s real money, my money, on every car. This ain’t OPM (other people’s money). This is my cash.
The fact that you have to deficate or get off the pot on the spot is mandatory. If you get off the pot to often you lose your right to sit on the pot. NOBODY WILL PAY ATTENTION TO YOUR NO-SALEING RETARDED SELF. It’s where balls meet the highway. It is a pure and simple extension of the Coliseum. The Romans knew it and I know it. It’s keeps the action in the arena. It puts the Peruvian hot pepper in the Ceviche’. Now you are talking about a trading forum that leads to conversion. The type of conversion that buyers and sellers feel good about. The kind they will return to and make it a habit of their gambling psyche.
Friday was another chapter of the same story. The 17545 registered over 7,000 units for Friday the 23rd of September. If anyone cares to print the truth about the market, please spend a day with us in the 17545 and we will open up your nostrils to a little reality. There were over 4,200 no sales. If that is scarcity, then I speak fluent Chinese. It would be very helpful to get somewhere closer to reality when we print things that people read that are sitting in a dealership or a corporate office. If not the right pew, at least the right church.
Late model Japanese cars are really tough. It’s simple, they have programs on new cars that make it cheaper to buy a new then used. In this economy, nobody has cash so it’s all about a payment. If a new one is less than a used one, even a person with a 520 emperical score care figure out what is the best thing to do. Who is going to stock 2010-11 used cars with new ones in stock? MMR is based on sold cars. When the auction is selling 38% of what goes there and OVE sell 7% of what is listed, you have a painting that is incomplete. You can’t read two quotes from Confucius in a fortune cookie and benefit from his wisdom. Next add in the condition report and relate that to the sold price. Now add in the massive effect that indiscriminant use of Car Fax to that picture and relying on MMR in this market will have you looking for a job sixty days from now, cause you’ll be flipped in your inventory by a number that will get you fired or have MAFS chasing you.
Simulcast rocks. I want to personally that all the dealers that trust me. I am honored to have you as contemporaries. Nearly 60% of the cars I sold Friday had an Simulcast bid. It is one of the ingredients of the future marketplace. Of course you still need balls, intestinal fortitude, trust and obviously merch. You also need a live auctioneer that can count and a hammer that creates the finality of the moment.
From where I am standing Simulcast is the future of what we do, buy and sell cars at the wholesale level. My lane had 647 dealers logged on Friday on Simulcast. I use a capital letter for Simulcast because it will charge our destiny. We teach people not to come to the live auction and when they do come we treat them to a parade of no-sales and sale prevention tactics that make it a lost day. Then we tell them to sell in Dead Fishville, a static on line process that converts at a rate that if it was your batting average you would be thrown off the little league tea ball team. To add insult to injury, how do you use an “independent” condition report and MMR at the same time? I have tens of thousands of examples that the condition report reads a 2.2 (way below average, junk, compared to all other cars of similar age, miles, and condition; that’s the definition of average) and they bring $1,000 to $10,000 over average MMR? Mutually exclusive data. This confounds and confuses the buyer as the inconsistency that is statistically undeniable, touches every transaction. If it isn’t reliable it is worse than worthless, it is misleading.
I sold 575 units this week and 91% of the cars we had at the auction. That’s just over 13% of the total sold for the day in one lane of 30. That’s not unusual, it is that way for decades. My lane sells more cars and trucks than any auction lane in the country, 52 weeks of the year.
I want to hear from you. Chime in and tell me where my view is distorted. I want to know.
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