Market Conditions Commentary
 
Trash isn't all the way back and cars are not quite as scarce as the sideliners and cheerleaders are reporting
by Robert Hollenshead
Feb 15 2012 11:29AM
My spies around the country are all echoing the same thing.  Trash has caught  some wind under its wings over the past week,  but there is a limit.  It is 7G trash, not 15G trash.

Even though I have been selling at 95% conversion over the past month, the general market, and merch  supposedly  scarce (?!@^*<>+_?), is not balls to the walls red hot.  The scarce part is such a joke.  Reading and listening to the sideliners espouse this as if they had a clue is Saturday Night Live funny.

When  the world’s largest auction no-sales 4,000 cars a week, where does the scarce part fit in? In my opinion the market is very lack luster and we are making buyers into sissys.  If you get out of bed and put your Chucks on, there are thousands of cars for sale.  But picking over inventory on line that converts at 5% is creating brain freeze.

I have guys coming from the hinterlands that buy and take 40-50 units home per week, every week.  But they get up and go to work, and they are not sissys with what they buy.  They are car buyers, not museum curators.  They take them home and a miracle occurs, they sell them and back they come for more.  Wow, it’s like magic.

Sit home on the computer and read CRs until your eye balls turn square, or look for a perfect car that is $1,000 under MMR and I promise you, there are no cars out there.  Skip over all the units that get graded as a 2.9 because it has a miss-matched tire and you will definitely find this to be a “tight market”.

I buy 600 units in my sleep without pressing.  Some need a little massage, others don’t.  You have to have a pinch of common sense and the will to sell for the market value of the moment, and go get more.

I price Trade in Marketplace to create opportunities for dealers.  It does just that, but you need to recognize the opportunity as it arrives.  Not all opportunities are the same and a user that is sleeping will not know it was ever put in front of their face.  It is exactly the same thing at the auction.  You have to pay attention and seize the moment.  Opportunities are fleeting.  Even when they are served on a silver platter, they have a very short half-life.  You must make the move when potatoes are hot.

My potatoes are in the oven and will be red hot Thursday and Friday.  Last week I had to borrow a car to get home.  I sold out.  You think I am doing anything different this week?  God is on our side with weather.  My vocal cords have almost recovered.  I am already feeling the pump.  My plan is to bust into Spring with a 100%er week.  Don’t disappoint an old fart like me (anybody know a guy that can still clock one?  I need about 400,000 miles knocked off my bod-ometer).  Come and participate.  I am a willing target.  Come and enjoy the fruits of this “scarce, tight market” in lane 11 Thursday, and 22 Friday.  I will not waste your time.

By the way Simulcasters, thank you so much for your participation.  I would really prefer you come to the lanes so I could get your butts wound up, but I truly appreciacte your trust in me by buying on the computer.

Robert Hollenshead

Founder and President

R. Hollenshead Auto Sales Inc.

8 Readers' Comments

1
Kevin Fryer
NAPERVILLE
IL 60563-2917
11 years ago
As a nearly 100% Simulcast buyer I truly appreciate the work you put in to deliver the quality vehicles week in and week out but also the fact that you stand behind everything you sell. This gives dealers like me the confidence to buy sight unseen and to make sure we're on our toes come sale day (because you're selling!). Your on-the-block commentary is just an added bonus!

2
Robert Hollenshead
MANHEIM
PA 17545
11 years ago
Thanks Kevin,

Without you and all the other guys like you I have no business. If you ever need further help, call Sheikh at 732 666 8888 or call me direct. We have 80 some empoyees at and around the auction. Even if it is finding cars after the sale or any arb or post-sale question, we are her to help you buy, and transport. The faster you get them, the faster you can sell them, the more we can replenish. It isn't a one way street, it's a full circle.

3
Jay Smith
Greensboro
NC 27405
11 years ago
Now if we could only get CR's on all of your inventory I would be in paradise. I am a small dealer in the south so it's hard for me to get up your way and keep the shop open as well so simulcast is where it's at for me. I appreciate the way your cars are depicted and this has instilled 100% faith in your units. Thanks again

4
Yakov Bandura
Syracuse
NY 13206
11 years ago
CR or no CR, if the darn thing is cheap I'm buying it. Chances are it's a clean nice car, very unlikely it will be something I will ask to return, but that's not an issue. Bob keeps his word and will help out as much as he can. Even on rougher cars, there are still money to be made wholesale. Thanks a lot of the latest update. See you tomorrow on Simulcast! Thank you

5
Robert Hollenshead
MANHEIM
PA 17545
11 years ago
Jay,
You have no idea how important that is to me to hear this from you. It validates the fact that we are in this together and all our work on our side is not for nothing. On an average day in my lane I have 650-800 dealers logged on. I get no feedback as to how they feel and why more guys week after week don't jump in.

I hope you do good with our stuff and if you need anything in our neighborhood, we are here to make you at home.

This is our future. I want every dealer to know what I say are not just words. I am committed to making this work for all of us.

6
Robert Hollenshead
MANHEIM
PA 17545
11 years ago
Thanks Yakov. I hope you get some stuff worth the candy.

7
Jay Smith
Greensboro
NC 27405
11 years ago
I agree completely that the market is headed this way. I for one can't run my dealership and be in the auction lane so therefore I live and die by simulcast. My only feedback would be to have more cr's but I understand that's hard when cars are coming in the day before the sale.See you tomorrow and Friday.

8
Yakov Bandura
Syracuse
NY 13206
11 years ago
Just looked at the list in lane 22. Tomorrow will be fun, perfect color cars, awesome options, many to chose from, and their going to be sold cheap. Yes, everything is heading towards online business. It's awesome to have a wholeseller like Bob, that does things like in the old days with a man's word but uses new trchnology. We all have something to learn from him and his team. I've beeen to their facility a few times, it's quite an operation. I saw truck loads of cars just coming every few mins. I think the CR situation will get better. See you tomorrow everyone!