January 17, 2021
With two weeks of 2021 in the books, our current reality seems very much the same as 2020. What is different is a growing sense of optimism about what the future holds for us all. A vaccine is here, and it will be available to us all over the next several months. Like it or not, a government stimulus package is likely to hit the pocketbooks of many Americans in the coming weeks. This should further ignite a used car demand that is already pretty healthy.
The market over the past two weeks remains strong. It appears to be gaining some momentum, especially in the midrange (trade-in) segment. Trucks are stable and could be poised to strengthen over the next 45 days. As the market picks up speed, supply is going to be an issue for us all. Some supply chain challenges remain on the new car side that will limit production and put upward pressure on late models again…not to the extent we saw this past summer, but it will be a factor this year as winter transitions to spring. This is obviously only my opinion. As we have all learned lately, predicting what will happen these days is a pretty futile exercise.
DAA Las Vegas is growing rapidly. Vegas is in essence a startup market for us and we are rapidly building a base. As with any new auction, there remains a lack of volume consistency. One week we are on, the next week, not so much. We are rapidly evolving though. We have 6 new fleet accounts committed to Vegas and beginning to sell regularly which will help us fill in the gaps for volume. Our dealer consignment has doubled in the past 90 days and is growing every week. Long story short, Las Vegas is a MAG market you should pay attention to. Freight options are plentiful and relatively efficient, and there are some good buys. We are running in the lanes, although with limits.
Our most recent venture, ABS Auto Auctions, is selling over 1000 units weekly in the Los Angeles basin and the greater Southwest. Integrations are coming to allow you seamless access to ABS, but they are months away. In the meantime, your DAA rep can get you signed up. It is worth a look, especially as inventories continue to tighten up.
In the Pacific Northwest, MAG Now is growing and really gaining momentum. DAA Seattle and DAA Northwest remain the workhorses with good volumes and a solid, robust market. We will be back in the lanes as soon as it is practical, and we can now see that light at the end of the nightmare tunnel we call COVID-19.
Thank you for your support and confidence in us—we are here to serve you!
President & CEO, McConkey Auction Group