Market Conditions Commentary
 
Contrary to what the pundits report and how markets operate
by Robert Hollenshead
Apr 2 2013 3:01PM

Once again the market is almost exactly the opposite of what you read from the pundits and what common sense would dictate. No surprise as they report the market that they don’t participate in. It’s kind of like the intelligence we got from our specialists before we destroyed Iraq…all false, no relationship to the facts. 

If you were to believe what you read, you might believe actions are selling high percentages, 85-95% at well over market value. Not close, and not close. So as I breeze through the most recent blurbs, and think about how we experience the market, I find it almost surrealistic. It’s close to a one to one opposite of what they write and how it should be. If you didn’t take the profession seriously you could say it is funny. But since we are dead serious about what we do, I would say it’s sad and very misleading, confusing.

Here we are in April. The market is very confused. Spectacular cars sell well but with little to no emotion. Crowds are not surrounding ”triple D” units. They get sold but the adrenalin is lacking. The testosterone that the Spring market brings in tow is simple missing. Don’t point to the 4 four cars you marked down and say what shots they brought. 167 other knuckle heads marked those same units down so of course thy brought huge candy. The other 3,700 hamburgs that didn’t have a single person looking them is what I’m talking about, a confused market.

We will buy and sell over 900 units this week and I’m talking about a flood of merch. They cover the gamut of anything a car dealer might have an appetite for and anything you want, in volume. Not two of any kind, like Noah, but dozens of any kind like Wall Mart. The difference twixt me and Wall Mart is they stock their inventory, we sell ours. This week will be no different. Hundreds of impossible to find low mile new car trades, hundreds of low mile imports, hundreds of high line everything, hundreds, as in four hundreds and I mean everything, no exclusions. Hundreds of domestics and hundreds of mile challenged units that go from BHPH to exportable, ready for Iraq hybrids, low line Toyotas and I mean a full barrel of exportables ready for Nigeria, Togo and Cotonou. Does a pundit know what that is? What a joke.

The amount of skin that you have in the game causes different reactions to identical circumstances. Who you listen to and why the call the market in a way a pundit might is based in skin. No skin, you better off going to the hairdresser and listen to that insanity. What a zero skin in mouthpiece is able to extrapolate from a spread sheet is about as useful as post-sale prevention turning down a 2003 Grand Cherokee with 126,000 miles for a diff noise that was built into it when it was coming off the assembly line. It does nothing but put cinders in your shoes whilst you are running a race.

If you are confused by now, don’t worry and waste no more time reading this. I will simply tell you that on Friday, in the 17545, I will have a group of cars that no other location in North America will have this week, this month and maybe ever, and they will find new owners in every case. 

I know you will be scratching your rear end trying to understand why I am unable to get numbers at a respectable time since I am the largest customer in auction history. Stick around as we will not waste your time with a no-sale parade even though a full 75% of my cars will come in after 1PM EST, well after the auction is over. Lane 24 will run from 9AM to 5PM. Our cars in lane 23 will start at 12:45 and even though we sell them all I can not get an answer as to why they won’t give me numbers, truly unbelievable. And in lane 5 we will begin at 12:30 well after the no-sales have chased all the dealers home, but we will overlook this insanity as we have for years. The only way I could get numbers is by paying a silly “rep” service for the ones, for whatever reason God would never be able to explain, are assigned via the laws associated flat line brain death. Get rewarded for meshugas, brilliant!

I will buy every car that moves and sell them in the next few minutes, eat stupid pie and smile, again. And you have the ability, by coming out or joining us on simulcast, to watch historically high conversions take place with all odds against us and a market that is simply confused. Don’t blame me if you miss it. It’s Tuesday and I’m already ready to rumble. Sure hope I don’t overheat before the sale.

Sell Well


1 Readers' Comments

1
Steve Falcone
Norristown
PA 19401
6 years ago
As always Bobby your commentary is informative and dead on the money! Keep doing what you do, there's no body better at it then you.