February 27, 2023 | Market Insights from Bob McConkey
The first quarter of 2023 is moving by like a bullet train. With rising interest rates, inflation, and general economic pessimism, the fourth quarter of 2022 left us all wondering what the car market might be like as we entered the new year. Well, now we know—business is pretty darn good!
The reality is there still exists a shortage of inventory in the marketplace (as there has been for two years). The late 2022 reset we experienced made it feel like supply and demand were normalizing. This was a falsehood. While painful, the market adjustment in the second half of 2022 was necessary to create the health in the marketplace we are all experiencing now. New car price increases have preserved the late model market at a level that avoided a bloodbath.
So now, here we are in a tight market with rising prices and strong retail demand. How long will it last? Who knows. I surely don’t see any kind of collapse in the late model market over the next 60-90 days, but we all know that what goes up, eventually comes down; we will surely see another reset sometime in Q2 or Q3 of this year. In the meantime, it is business as usual. At MAG we are bullish on the market and are working hard to source inventory for the loyal buyers we serve.
We sold 2300 units last week amongst our various offerings. While many vehicle auctions and platforms are shrinking, we are growing. I am proud of our team and the dedication they have toward serving you, the customer.
Thank you for supporting our efforts – we appreciate you.