Market Conditions Commentary
 
We will hit 20,000 units sold this year in the 17545 Manheim Pa. and Export News disaster
by Robert Hollenshead
Dec 26 2011 3:24PM
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 late model  S Class and GLs which are worthless with few exceptions.  All BMW product was very good if it isn’t silver or charcoal 5 Series with mud miles.  Late model Jags are all off a touch due to new car programs.  Beware of all Saabs.  They are flat out sale proof.  With the news out everyone is in a panic state.  I am seeing hundreds coming through Trade-in Marketplace from all over the country.  It’s a general panic.

There is no doubt that most buyers are looking a few weeks out and paying more attention to sports cars.  We had major action on anything in a sports car that looks like a B cup or better.  There were some major shots on heavy exotics that have been lack luster…they are coming into play.

Now the News:  We are in a world of dung due to the Secret Service moving in on the Exporters that have been buying strong over the past few years that ship to Nigeria.  This is the last bastion of Export business that has been consistent since the Russian and Eastern European market took a poop last year due to import duty changes. 

The scoop on this one is worse.  Here’s the article, read it and weep.  We have had a tremendous aount of activity at all the auctions over the past few years from buyers sending cars to West Africa.  Man, I hope this isn’t the end of it.   It’s off Bill Warner’s private investigator crime blog:

USED CAR DEALERS LAUNDER CASH FOR HEZBOLLAH WHO SENDS CASH TO IRAN WHO FUNDS YASIN AL-SURI WHO FINANCES AL-QAEDA & TALIBAN AND THIS HAS BEEN GOING ON SINCE AT LEAST 2002 OR BEFORE.

TAMPA SUNNI & SHIITE USED CAR DEALERS LINKED TO THE SUPPORT OF TERRORISM, “THE CARS ARE THE CASH” AND THE FBI HAS KNOWN SINCE JUNE 2002.

DEA Complaint....Used Car Dealers in the USA launder millions for Hezbollah, Hezbollah is a Iran-backed Shiite Muslim group. Where is Iran backed Yasin al-Suri getting the millions he needs to help finance Al-Qaeda.....is it the "cars are the cash scam"?

The U.S. government said in the lawsuit filed in a Manhattan federal court that it seeks nearly a half-billion dollars in money-laundering penalties from some Lebanese financial entities, 30 U.S. car buyers and a U.S. shipping company.

Prosecutors said the $300 million was wired from Lebanon to the United States and used to buy used cars and ship them to West Africa. They said Hezbollah money-laundering channels were used to ship proceeds from the car sales and narcotics trafficking back to Lebanon.

The U.S. accusations came after an indictment in federal court in Virginia accused fugitive Ayman Joumaa of leading a drug conspiracy that provided income for Hezbollah, which has been designated by the U.S. State Department as a terrorist organization since 1997.

A Washington-based Drug Enforcement Administration spokesman, Lawrence R. Payne, told The Associated Press in February that Joumaa's organization laundered money using 50 used car lots in the United States. Cars were exported to Lebanon and West Africa.