April 30, 2021 | A Market Update from Bob McConkey.
Unprecedented market conditions continue with no end in sight.
There are simply too many factors in play that are keeping inventory supply out of balance with demand. The “experts” predict that new inventory will tighten more in Q2 before beginning to recover by Q4 of this year. As for the used wholesale marketplace, there will most certainly be some minor corrections taking place this year, but I don’t see a major collapse in the inflated values we’re experiencing anytime in the foreseeable future.
When things get tight, dicey, or weird in life, we tend to go with what we know and can trust. For you, we hope that is us. We are working hard to gather inventory, and in relative terms, we are doing well. Our consignors are loyal. Our relationships are strong and there is trust between us.
In the Pacific Northwest, DAA Seattle, DAA Northwest, and MAG Now are offering 1800+ units every week. In the Southwest, DAA Las Vegas and ABS Auto Auctions are offering an additional 2000 units weekly. We have lots of good, fresh inventory on the money and it’s selling every week.
At MAG, our strategy is to continuously evolve. It’s really very simple: We are committed to providing services designed to meet you, our customer right where you are. Whether it’s in the core physical auction lanes or any variation of a digital auction experience, our goal is to provide the best in whatever your preferred buying and selling experience may be.
We are an auto auction company, and what it means to be an auction company is certainly changing. What had been a slow evolution of our industry has accelerated due to the events of the past year. Change is not coming – change has arrived.
We announced this week that we are converting our ABS auction technology to EBlock, our MAG Now platform this summer. The target for this conversion is mid-July. Once complete, we will offer one fully integrated marketplace that consolidates the inventory and buyer community from San Diego to Bellingham.
At my core, I am an auction guy. I love the market dynamic auctions create. If you compare EBlock to the various other platforms vying for your business, you will find that it is unique – it is quite literally a digital version of an auto auction.
The benefit of EBlock’s digital platform is that all inventory is consolidated into an “event” at a set time (like an auto auction). Buyers attend that event and evaluate hundreds of potential purchases in advance, referring to run lists and set auction times (just like an auto auction). During EBlock events, buyers shop multiple lanes with each car on the block for 45-60 seconds (again, like an auto auction). This is how buyers and sellers who value their time can do a lot of business in a matter of a few hours (like an auto auction). This is our digital strategy—this is MAG Now, powered by EBlock!
I invite you to come to the auction – whether via Edge Simulcast, in person, or on MAG Now. The future is now.
Thank you for your continued support of our efforts to serve you.
Bob McConkey – President & CEO