January 20, 2023 | Market Insights from Collin McConkey
Dealers, time has passed quickly the last few years and I am genuinely thankful for the ride we’ve been on since I’ve been in my role as GM. Overall, we’ve been on an unprecedented ride the last few years, but it’s no secret things were a little rocky in Q4 of 2022. It means the world that you have trusted us with your consignment or to be your partner to source inventory throughout these ups and downs. It seems that we are back in a healthy market that is more realistic than it was a year ago.
In the industry, we are seeing a lot of consignment moves from fleet/lease consignors and large dealer groups in the wake of our evolving industry. While we are primarily seeing volumes shift more in metro areas where there are multiple auction locations per city, we are seeing some changes in Spokane as well and continue to monitor the large effect merger and acquisitions have on the overall industry.
Repossession volume is on the rise, in particular our specialty and RV consignment. The explosion of RV sales through COVID is starting to catch up and as a result, we have elected to run two RV sales a month in Spokane, and you can see that schedule by clicking here or going to magauctions.com/magrvs/.
For this week, we had a smaller than anticipated sale for a promo and this is a result of the cooler market in Q4. Despite that, we had a barn burner of a sale and celebrated another Jackpot January promo. Some automotive headlines have warned of a sluggish start to the year across the industry, but in the Northwest, we are seeing the opposite. In the new year, we have seen our average sale price per unit jump up 20% as the demand for late models returns and the overall sales conversion percentage is up 15% as retail has stabilized for many of our customers. As things heat up, we expect sale volumes to rise soon.
As always, thank you for partnering with us. We always love hearing from you guys and seeing you in the lanes!
General Manager, DAA Northwest