Market Conditions Commentary
 
$40,000,000,000 in guaranteed offers
by Robert Hollenshead
Jul 12 2012 8:04AM
Today is the day that I pass the magical number of $40,000,000,000 in cumulative offers to purchase any car on Trade in Marketplace.  It’s now official, it is forty billion dollars in live offers.  Not opinions, live offers.  After analyzing thousands of individual cars and trucks that people want to sell or trade seven days a week we have hit the milestone.  When you stop for a second and think about this, it really is wild.  I appraise and offer to purchase more cars than any entity on earth. If you added up every public dealer group in the country and added up the total of units they appraise in a day, I do at least twice that amount.  Wild.  Now, go tell Dunkin Doughnuts that and see if they still make you pay for the coffee.

Aside from this milestone we still need to look at what is happening in the market and we still need to sell our 700 units this week.

The market is a mess.  Dealers are crushed in worthless inventory, there is zero export activity, nobody comes to the auction, and Car Fax has 20% of the cars in the market sale-proof.  The crazy thing is buyers that go to the sale still say the market is hot.  How retared is that?  Of course it’s hot on 5% of the units he follows in the door to bid on because they are the fattest units on the parade ground.  What about the other 95% that have AIDS, nobody wants for free?  You won’t get into Harvard if your SAT score on 200.  That’s 5% of what the total should be.  If dinner was 5% good because the mashed taters were fine but the rest of the meal has maggots crawling on it, how was dinner?  You ain’t leaving the restaurant bragging on how good the food was, you might be calling the police to shut the place down.  That is the market we are in.

Of course there is action on cheap slop.  Of course there is action on a tits up fat unit.  How about the same unit with a hit on Fax.  How about the same unit in blue or burgundy.  The fact the the talking heads have finally figured out what we have been preaching for many months, because we feel in the moment it starts happening, is really comical.  Hybrids have been sale proof for a long time, very late model Japanese cars are worthless due too new car picture, and good domestics that arenb’t from a factory sale, ex-rental slug, packed up gear, are on fire because there are none in circulation.

That all being said, and I ain’t one to be a braggart, I am so proud to tell you we got a line up the makes a burlesque line in Vegas look like a gee string show in an old folks generic center, hospice or a similar establishment and so on.

Use brain.   Get out Auction Genius, research our hamburgers, and do yourself a favor…pay attention.  I will be selling everything Friday in the 17545 Wall Street of wholesale.  I have been juggled to new lanes.  I am I lane 24 at 8:45AM  with 400 Imports.  Lane 23  late in the afternoon with 125 medium units and some mile challenged unit and I am in Lane 6 with a pile of low miles domestics starting, unbelievable as it is, due to the inability to get numbers (I know, you are saying it’s impossible but it is true, my first domestic numbers are after noon and in lane 23…after 2:00PM!@#$%^%$#@!!).  But that don’t mean I won’t sell, it just means I have to play on an unfair playing field, but that’s OK (not really) because I will still sell more, at the highest percentage of any seller in North America.  So Pay attention, my loss  and piss poor numbers, is your gain.

Wild inventory that will be sold, no prisoners.

I do my best to keep you awake, so PAY ATTENTION.  You will be the benefactor of my circumstances.

Have fun, and sell well.

The Maestro

Robert Hollenshead
Founder and President


3 Readers' Comments

1
Tyler Rombough
North syracuse
NY 13212
7 years ago
Not only do I love your commentary, I depend on it and one day aspire to have the visions that you had and put into action and have and are putting into action! Give us a little more! I know you are engulfed in your passions, but one of my passions is learning more from you.

Please let us know about the market, your current thoughts of it and where it is heading more regularly. Every time I get an email you have have new commentary, I stop whatever I am doing to read it...unless I am delivering a car. Lay people may not understand what stood in your way, but I can imagine, and I want to learn more for the best. Hope all is well, thanks for everything thus far! Hope to hear from you soon.

Sincerely,
Tyler Rombough (Paradise Companies) Syracuse, NY 315-559-4400

2
Robert Hollenshead
MANHEIM
PA 17545
7 years ago
Tyler,

You are very kind. I appreciate it. I have been lax lately as I have a few irons in the fire that are red hot. I am convinced they are game changers. They are designed by us, for us. When I say us, I am referring to guys like you and me. Working on Sunday, thinking about and acting on what we can do to make our business better. We are not at the beach, or fishing or figuring out how to make a fake workmen's compensation claim. We are here on a Sunday laying out the week to be sure that, in my case, we can make the 168 employee's check good this pay day.

Sell well and if I can ever help you in some way, let me know.

3
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7 years ago
Thank you for re-assuring me that I am not the retard. I get tired of hearing other dealers saying how hot the market is day in and day out, thinking that I am in some absurd universe all by myself i tend to get frustrated. Love your articles both here and in dealer news, thank you for sharing your thoughts.