... at the end of this post, my conclusion will be that the weather this winter has had less to do with the market than you would think. Now... if you have 3 locations and 1,000 units in inventory... you will argue my point. Retail traffic is down. People are on their roofs shoveling snow off or they are inside out of the biting sub-zero winds. And because sales are reflective of how many people are walking in to show rooms, the sales curve in January and February will show a dip.
The auction market has only suffered operationally with increased snow removal costs and to some effect, fewer inbound trucks delivering to auction the day prior to [that] auction because there was indeed a severe storm that week. The auction market itself (measured by %'s sold and $'s) has NOT taken note of the weather at all; 4X4 trucks, SUV's and the coveted 2008-2011 sedans from 40K-90K have clicked right along (dead batteries or not).
Dig out you aged and duplicate inventory and get them across an auction block... spring is in the air!
It's not the northeast weather that is keeping the wholesale market in check, it is the overall blanket of slow retail sales at both new and used car retailers! * Subaru product is the most in demand at auction now, Hyundai another sought after product line. * Toyota shows increased prices on non-recall units, but not as strong as you might assume... more trouble ahead for the giant retailer? * The availability (or pure #'s of units) crossing the block is down at auctions overall; and the old economics 101... supply v. demand... is not at work right now. * As stated last post, large trucks are softening, luxury SUV's firm. * Honda Civic strong, Buick (yes, Buick) in demand: 2004 LeSabre LIMITED with 44K sells at an astonishing $9900. Compare that to a 58K 2004 Toyota Camry selling at $8900! Go Buick, go. * It is the economy, stupid. When it is all said, people are not grabbing out for another or new car. We are in a replacement mode at auction- that's it. Chat soon
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