Market Conditions Commentary
 
Join your Interdependent Dealer Association and cars are anything but scarce, but we're selling no matter what the outcome
by Robert Hollenshead
Oct 3 2012 2:19PM

First I want to say, join your state's Independent Dealer Association.  Everybody needs to get in.  Numbers talk and BS walks.  The only way we have power is to join hands.  Let’s do it now.  If you want me to go into a litanies explanation I will, but not now.  The only thing I can say is with numbers you will be shocked at what we can do.  I am not saying this to waste your time, or mine.  I am saying this because with numbers I promise you we will make some incredible things happen.  Never trust me again if I am wrong, trust me on this one.  If all 80,000 of us joined hands we have bargaining power that as individuals is something we can’t even think about.

So,  I am willing to reduce the price of every car I sell to any new member by $30 for the next 10 units I sell you and donate that money to your Independent Dealer Association regardless of what state it is. 

Second,  that’s the end of cars being scarce.  Flood gate is open.  Buyers’ market is in full swing.  There is nobody at the auctions and at very best the buyers are, to quote Forrest Gump, “ as picky as picky can be” or something like that.  Simply put, there ain’t nobody in the lanes.  It’s a ghost town. 

I tell you this as a warning. We will have over 700 units on the block this week and we have an absolute flood on the way.  No, it’s a tsunami. There are very few things in the wholesale business that are absolutes, but this one is chiseled in granite, I am selling.  Last week we sold everything and borrowed a car to get home.  This week, make no mistake, every one of my orphans are finding a new home, period.

 So if you are one of the 1,000 dealers that have given us the courtesy of logging on one of my lanes on simulcast, see a bowling alley as opposed to a lane packed with people like we always have had, don’t get frightened.  Make no mistake Jake, these babies are on a one way ticket to a new home.  Don’t get scared by stupid low prices thinking you are missing something, they can’t be getting sold for that price.  No, no, no.  We will be taking the doe, even if it’s low, and letting the go.

Pay attention to two items.  First, they are guaranteed to be what we say they are.  Second, the price is what it is not because the unit in question is not a hog even though it may be hog money, and we will be selling, regardless of price.  It is a new market.  Don’t worry about me.  I am selling…and then buying on the new market.  Dreaming about dopey prices and frustrating willing buyers has never been, or will ever be, my modus operandi.  We won’t be starting now just because it hurts only when I breathe in the market we are in. 

It’s officially your turn.  You can win now…..buy trust me, I make it up after Thanksgiving.  I predict the credit rat market will be back this year.  The warranties are up on all the Cash for Junkers buyers that got swept out of the market and bought new as opposed to used.  They will be back this year because their credit is just as banged up as the Hyundai they bought four years ago.  I think we will get a bit of an uptick in the export market.  I have had a lot of activity on my website and Google Analytics from countries that have been sound asleep for the past year or so.  So while I am prognosticating a supreme Spring market that starts for us in November December, I will be selling , regardless of prices.

Have fun and Sell Well,

Robert Hollenshead

Founder and President