For the past 2-3 weeks I have been making a point of seeking out the most experienced auction dealers and asking them of the market we're swimming in. As strange as it seems there really is no panic or worry... rather that this too will pass and the march will go on.
The big concern I hear voiced in the vast middle of the auction populous is where the cars will come from over the next 10-14 months; the short term. What there doesn't seem to be is an understanding that after that period, there will have been a complete correction or adjustment to the "new" levels in availability of vehicles. New car sales made the adjustment away from the heady days of huge fleets and rental car gluts and adopted creative leasing, sharp incentivizes, and deep discounts. Today's level of 12.6 million new vehicle sales annually* will continue to feed the used vehicle supply and despite the "short term fear", there will in fact be cars available to buy at auction in the future!! The key is to take a page from the most sage... let this pass and begin to shape your business for 2012 and beyond.
Be sure to get to auction weekly- stay in tune with what's being talked about amongst the competition. Don't be afraid to sell in to this market- keep your inventory well below 90 days aged. And when buying in this market, take comfort in knowing that they aren't cheaper anywhere else right now... everybody is paying the same price!
*http://online.wsj.com/mdc/public/page/2_3022-autosales.html
The big concern I hear voiced in the vast middle of the auction populous is where the cars will come from over the next 10-14 months; the short term. What there doesn't seem to be is an understanding that after that period, there will have been a complete correction or adjustment to the "new" levels in availability of vehicles. New car sales made the adjustment away from the heady days of huge fleets and rental car gluts and adopted creative leasing, sharp incentivizes, and deep discounts. Today's level of 12.6 million new vehicle sales annually* will continue to feed the used vehicle supply and despite the "short term fear", there will in fact be cars available to buy at auction in the future!! The key is to take a page from the most sage... let this pass and begin to shape your business for 2012 and beyond.
Be sure to get to auction weekly- stay in tune with what's being talked about amongst the competition. Don't be afraid to sell in to this market- keep your inventory well below 90 days aged. And when buying in this market, take comfort in knowing that they aren't cheaper anywhere else right now... everybody is paying the same price!
*http://online.wsj.com/mdc/public/page/2_3022-autosales.html
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