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Who Predicted This Weather

We discussed how firm prices would be by late January and that selling your aged units would be easy! What we did not factor in was week after week, after week of snow and winter conditions that has affected everything from auction prices, to transportation logistics, to retail sales. Looking to the Weather Channel and radar patterns every day is growing a bit on all of us... and it's only February 3rd!

This winter of '11 has decreased auction consignments sharply and as a result, inventory at dealerships is heavier because yard operations are behind. Transporters signify the real issue- getting units to auction has been challenging... and they too are behind. When the weather does break, auction volumes will spike quickly and I feel this will check prices some delaying a traditional "spring price surge".

The market is working in spite of the weather, and prices in several segments are very, very firm. A 2010 Nissan Pathfinder LE (V6, NAV/DVD) with 1,900 miles was near record at $32,700 [2-2-11 Connecticut]. At the other end of the spectrum, 6-10 year old units are up in value and increasing. Retail demand for less expensive units combined with very, very active export bidding are driving prices up. Dodge and Chrysler vans are very high % sellers. Domestic sedan values have nearly reached import values. Excessive miles are not the negative they were just 3 years prior.

Keep moving the snow and stay positive!

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