Market Conditions Commentary
 
Hard to believe...but sadly true
by Robert Hollenshead
Aug 29 2012 10:35PM
Here is an email to me from one of my guys that buys for me, and for the past four decades, we have sold at the same auction. Rear this carefully and think about what is being said here, it couldn’t be crazier if it was a Salvador Dali painting…but it’s true.  Now keep in mind I have sold many hundreds of thousands of cars at the auction and sell more than anyone in the history of the automobile business including Galves and Grandfather Kelley combined times 100:

Hey Bob,

While I was down at (XYZ) Toyota today, one of Manheims sales rep's  was there trying to get them to send their cars to the sale.  The used car manager said he sold them at the door.   The girl asked who he was selling to, he said us (Hollenshead). With that,  the rep then said that if he would give her a list of the cars he sold us, that she would look up what they sold for and then let them see how much they were losing by selling us the cars and not doing it themselves.  They will send CR writers out for free and will sell them for them.  She has all the records and would be more than happy to give them to him… or to his Boss.

First off, as most of you know, I love competition and I love a nice fight.  But let’s dissect this.  Here we have a “salesperson” that is assuming I make money on the cars I buy from that store.  Next she is proving to be incredibly ignorant of what happens at an auction.  The assumption that a New Car dealer can do what we do, sell 30,000 units, $600,000,000 a year, over MMR with a 90% plus sales rate, is silly.  We have an infrastructure of over 150 people dedicated to one thing…the wholesale thing. It ain’t no accident that we are the only one in that  building or any other building doing what we do.  If it was humanly possible, everybody would be doing it, including her, her boss, her boss’s boss and her boss’s boss’s boss’s boss, and so on.  Also, she is overlooking that little fact that I am a bank.  A bank that fronts about $30,000,000 to dealers who like to get paid up front, 53 weeks a year (that includes the week when they are short on payroll so we front the cash to make to the next week now, on thespot, with a laser check), that works 100% of the time, no no-sales, auction fees, post-sale prevention wackiness, and finding out that that wholesale thing ain’t all it’s cracked up to be as it requires absolute dedication and knowledge to the point of insanity which eliminates her, her boss her boss’s boss, (and his boss who may not even know what an auction looks or smells like) and so on from competing with me in the street.  Next the numb skull is overlooking the fact that the dealer is a subscriber to our product, Trade In Marketplace, and is buying 20 units a week that he sells to us at a huge wholesale markup.

Just so history don’t get lost here, the reason that people come from far and near to an illogical place every week to buy cars is not because of anything other than us.  Please keep this straight.  We find them, fend off auction employees backstabbing us at the point of contact, buy them, we transport them, we recon them, we clean them, we kiss ass to get the titles, we sell them, we get crushed in a gaffing post-sale prevention, and you guys come to buy them, pay a wild fee (once to buy and then another to try to prevent the purchase), transport them, get told they are two seconds out of time so they have no recourse when there is a fart in the back seat.

And now here is the bad part.  They offer to use the information that I sold the car at their auction against me to the dealer that chose for the past 40 years to sell me cars.  It is completely without scruples, morals, ethics, principles, brains, vision, knowledge or any sense of honor.  If your number one customer, historically, nationally, is disrespected so openly, what does that say about character?  You do business in an open forum, and they are willing to take your data to use it against you?  Hoping to hurt you (not knowing it might help me as the stop is absolutely a loser YOY, but what would they know, or care evidently).

I am not talking for me.  I am talking for me and all the ME’s that look, act, talk, live, work, breathe and feel like me.  Free, Americans, hardworking, chance taking, driven to the point of a third divorce because of an eternal optimism that the average partner likes up front but hates over time, a car dealer.

It shouldn’t piss me off because we are frying major fish outside of the business we do in the street, but it does.  I think it is the ignorance or more than that it is the disrespect that they are willing to show us, the dealer, that makes a auction possible.  Tread on my poncho without concern?  I know one thing because I know me fairly well, I wouldn’t step on my poncho.  The one guy I don’t want to start with is the cat that has no regard for quitting.  You might be bigger, and prettier, and have muscles, and have more degrees than me, but you ain’t going to out think me, or out work me, or get me to quit cause it’s cold or I’m sore or it’s after dark, or a Holiday.  Or because you said so or because you think you have the right of way on a two way street.  Nope, miscalculation, you just going to wind my fat, old, been clocked five times ass up.

What do they think of us?  How could we, why should we think different of them?  What a pity.  Very disheartening, disappointing, embarrassing…and lights a fire in my ass that won’t let me sleep.

Robert Hollenshead
Founder and President
R. Hollenshead Auto Sales Inc.


6 Readers' Comments

1
Yakov Bandura
Syracuse
NY 13206
12 years ago
Hi Bob,

Yakov from Highline Motor Works. I've just had the same meeting with Manheim Rep that was trying to convince me to get CRs written up on all of my cars (100-120 cars) pay them $35 and try to sell everything on OVE.com. I like OVE.com, but only for aged inventory. NOT FOR FRESH HOLLENSHEAD INVENTORY THAT I BUY EVERY WEEK AND SELL WITHIN 45 DAYS. Manheim has become a very corrupt auction and it just saddens me that they don't care about their clients. Your lane is responsible for atleast 30% of the sales in there. Especially on exotic weeks. They should kiss your rear end for running your cars in their auction, NOT TRY TO STIFF YOU. I know no one can't beat what yo do. NO WHERE IN THIS WORLD YOU CAN BUY A CAR WHOLESALE AND GET A GUARANTEE WITH IT. BUYING FROM HOLLLENSHEAD IS LIKE BUYING A UNIT AT RETAIL STORE BUT PAYING WHOLESALE MONEY AND QUITE OFTEN STEALING IT FOR DIRT CHEAP. PLUS MANHEIM WILL TRY TO STIFF THE SELLER ON PSI THAT THEY CAN'T DO STRAIGHT BECAUSE THEIR MECHANICS

2
Yakov Bandura
Syracuse
NY 13206
12 years ago
ARE NOT CAR MECHANICS BUT LAWN MOWER MECHANICS. I just saw your inventory and seen the UCR. I LOVE IT! LOOKS AMAZING AND VERY DETAILED AND EASY TO UNDERSTAND. GOOD JOB!!! ANOTHER GREAT PRODUCT FROM THE KING OF CAR BUSINESS. Also I would like to Thank you for the 2012 VW Jetta I got from you with 211 miles on it. I just looked at MMR results and realized I own the lowest mileage 2012 Jetta for the least money even after putting a gee in it to make it perfect. Thanks a bunch for your business. Without you small guys like me don't expand from 20 cars to 120 cars in under 2 years. You are truly a mastermind at what you do and no one else in the world does it as well as you do. We'll see you tomorrow on Simulcast. Thank you!!!

3
Yakov Bandura
Syracuse
NY 13206
12 years ago
P.S. THEY CAN'T DO WHAT YOU DO. PERIOD. NO MATTER HOW MUCH DOE THEY GOT OR HOW SMART THEY ARE. YOU'VE BEEN DOING THIS ON THE STREET FOR TWICE AS I AM ALIVE, THEY CAN'T BEAT THAT. LIKE YOU SAID, MOST NEW CAR STORES ARE PART OF TRADE-IN MARKET PLACE. THEY MAKE MONEY ON TRADE-INS ANYWAYS AND GET TO KEEP WHAT THEY LIKE. IT'S A WIN WIN SITUATION FOR BOTH PARTIES. NO SMART USED CAR MANAGER WILL QUIT THIS SYSTEM.

4
Robert Taylor
Feasterville
PA 19053
12 years ago
I guess that they were trying to undercut the best guy in the market. Desperation sets in when you are short on talent. Maybe next week they will be giving out " Bob Hollenshead bobble head dolls " . I had the same experience with Hatfield (AKA Manheim of Philadelphia) . They took six cars as a test case from one of my long time dealers. The first two were sold for the same money that I offered at the door ( minus the fees). I asked the GM if he wanted a check or if he wanted to wait another week to finish the test. You know what happened next .

5
Michael Mcquillan
Geneva
NY 14456
12 years ago
2

6
Tom Fogarasi
Ynkers
NY 10707
12 years ago
Yo, bob
Stop whining and open your own auction once and for all.
The auction should blow you seven days a week, for the money
You bring in.