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Market Conditions Commentary
With nearly 40 years in the wholesale automobile business, our founder Robert Hollenshead offers his insights on the market and where it is going -- info to help your business succeed!
by Robert Hollenshead
2/22/2012 11:06:41 AM
The first three weeks of February I have sold 1,700 units and have 550 more for Friday to round out the month.  The average price is one percent over average MMR.  The sales percentage is running just under 95%.  Is that scarce?

What this means is we are not playing softball, hide and seek, or Chinese Checkers.  We’re in the cage with no gloves on and we are doing business, win, or lose.  If anyone that is in our lane or on simulcast can show me that you got jerked by bidding on a car and we didn’t sell it, I’ll send you the title for free.  Simply not my style or MO. 

This week, it is a car show with the exception that if ever one of these Foster Children will be getting a new home, I guarantee it.  This is not practice or a contest to see if we can hammer the buyers into a coffin that requires a crane to extract them.  It’s pure ACV.  If the bitch is presented correctly and More...

by Robert Hollenshead
2/20/2012 2:42:04 PM
It has become clear to me that simulcast is the winner in the race to find the answer to the question of how we will be buying and selling  in the future.  Simulcast or a version of it will be the heavyweight champion of the remarketing world. 

Static listings will go away for professional serious sellers.Statics are little league no matter how you dress them up.  They simply don’t work to sell in any volume at a professional conversion rate or to find ACV in any way shape or form  that simulcast can’t crush.  Static formats  require too much wasted time and wasted research.  They  convert near nothing, and certainly nothing that a live sale doesn’t dwarf.  The ability to reveal the condition, touch the potential market and create the emergency where fear and greed collide is where simulcast hits its stride and leaves the statics in the rear view dust.  It  maintains the unique beauty of an More...

by Robert Hollenshead
2/15/2012 11:29:26 AM
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 More...

by Robert Hollenshead
2/10/2012 9:05:56 PM
Thank the maker, tax time is finally here.  Make no mistake, as soon as I wrote the blurb the market flipped and junk is on.  We sold out today and the market was strong from bell to bell.  My lane was jambed all day.  Everything was ripping from $100,000 down to $1,000.  I need everybody to prey hard that it stays this way for the next few months.  I'm dead, so I'm done.  

Sell like animals and come prepared to buy your butts off.  I promise you I will be packing for dinasaurs this week.  I buying anything on four wheels and I'm bring them to sell.  Get ready
More...

by Robert Hollenshead
2/8/2012 3:43:24 PM

Where's the credit challenged tax market?  It turned up missing this year.  It's the one we count on every year for the past couple of decades.  Normally on the wholesale side you could feel it starting just after the Thanksgiving break. Guys would come out of the woodwork starting to stock up for the tax check buyers, the ones that have an average credit score of your parakeet's i.q. 


I've been standing on the auction block over the past 8-10 sales, looking at units that are perfect for that market.  Normally you can't see the car because of the crowd, and nobody's home.  I didn't get it. I didn't see a flicker in November. OK, maybe December.  No December.  For sure January, no January.  Thank God, February.  No February.  There is a regular Army of guys that pop up like tulips this time of the year, digging in More...


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