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Time to take vacation

It has been too long since I have made a report, but the consensus is that new cars are "soft" and "...prices for used at auction are too high...". Now, in my 20 years at auction these two comments show up in all market conditions and are brandished far to often... but never more then during 'vacation'. I think that going forward and in to September, vacation is a real factor to take a look at (and always will be).

Traveling out of Maine last week, I-95 north was busy! Trucks, vans, and cars of all sizes were pulling or carrying all sorts of summer-fun and other than one '79 high-top Vandura broken down, I didn't see that many units that needed to be replaced. What's being driven today by the majority of owners is just fine for them. Their 2008 lease is not up for several more months, the 2002 Suburban is probably paid for and runs great, and with all of the economic clouds... the others will continue to maintain what they have. Combine this with the overwhelming need and desire to take time off, no wonder retail is slow in July!

As far as these pesky auction prices go... the index I utilize in many cases is flat. The relative increase in price (cumulative) is more a reflection of more expensive short-term lease units being sold into the market and not model to model price increases. 2-6 year old 4X4 trucks are up and specific export models are artificially high, but the remainder of the market plugs along... just like I-95!

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