April 17, 2021 | Market updates and insights from MAG auction leadership.
DAA LAS VEGAS
As the continuation of shortened supply in the market continues, the customer base in the Southwest is finding one of the more competitive environments in recent memory. Demand for late model, low mile vehicles has driven prices well beyond “normal” retail and wholesale realms. Our dealer partners such as Towbin Automotive and Jim Marsh are seeing record returns in retail sales AND heavy increases in wholesale returns. Repossessions and dealer trades are the primary source of consignment inventory here in Las Vegas.
This past week, Exeter Finance and United Auto Credit headlined our commercial lanes and converted at 100% with record retentions. There is a push to capture the market at its peak, but we are also seeing a growing consideration for how “value-added repairs” might increase margins. Over the past several weeks we have seen an influx in reconditioning requests in our shops. Thankfully, our investments in facilities have lent to an increased capacity to meet these growing needs from both our commercial and dealer partners.
Summer weather is looming here in Vegas. With that, the city itself prepares to allow 100% capacity in restaurants, casinos, and other establishments that have previously been limited in response to COVID-19. We are excited to see a growing buyer presence both in-lane and online week over week. I invite you to come join us, meet our team, and experience an environment that we hope endears you to our sale for years to come. Thank you to everyone who has supported us through this season of growth. I look forward to seeing you in the lanes!
Joe LeMonds, General Manager
This week we hosted our annual NASCAR Days sale. It wasn’t the party we are used to, but we were happy to have over 170 of our dealers in the lanes and great Fleet/Lease account participation. Ford, Kia, Hyundai, GM Financial, Phoenix Financial, and ADR all had good runs and sold almost everything. On the dealer consignment side, we were happy to welcome CAL Cars back to the lanes for the first time in a while. CAL treated buyers to a fantastic mix of late-model trucks, exotics, and trades. DM Northwest, Toyota of Tri-Cities, Parker Toyota, Dave Smith, and McCurley Integrity Dealerships all added to a great sale, converting near 100% combined.
Before COVID-19, we were consistently selling 20% to online buyers. Coming out of COVID and as we reopen, we are seeing very different numbers. We have seen about 65% of our sales going to online bidders now and only 35% to in-lane buyers. We are very curious to see how these numbers evolve over the next few months. No matter where you are or how you prefer to bid, we are thankful all the same that you choose to partner with us.
We look forward to seeing you next week!
Collin McConkey, General Manager
Sun’s out, guns out (short sleeves)! The sun has arrived in Seattle and over 100 buyers attended in person to enjoy the beautiful weather and absorb some much-needed vitamin D. Online buyers continue to apply bidding pressure and are responsible for almost 65% of all purchases as in-lane buyers continue showing their appreciation for the ability to physically attend, preview, bid, buy, and sell.
This past week’s offering was a mix of late models and trades, with commercial accounts representing 25% and dealer consignment responsible for 75% of our sale day inventory. Exeter, Wheels, Hyundai Motor Finance, and ADR led the commercial account charge and Toyota of Seattle, Honda of Seattle, RTA Direct, Steve Marshall Ford, and Titus-Will were major contributors to the pool of over 65 dealer consignors.
We can all probably agree the April sales this year have a completely different feel than those of April 2020. Our team is working hard to bring much-needed inventory to you, our customers. Next week we will kick off the sale with the Harnish Auto Family of dealerships running 100 vehicles, our GSA Public Vehicle Auction at 11:00, and another full complement of consignment partners filling the lanes.
Please keep in mind that McConkey Auction Group (MAG) has multiple resources to help you find product for your stores:
- DAA Las Vegas: Wednesdays at 10:00 AM
- MAG Now digital auctions powered by EBlock: Wednesdays at 1:00 PM
- DAA Northwest: Thursdays at 9:00 AM
- DAA Seattle: Friday at 9:00 AM
- ABS Auto Auctions: digital auctions every Monday, Wednesday, and Thursday at 3:00 PM plus Weekend Sales every Friday – Monday morning and Booksheet sales every Wednesday at 11:00 AM. Find more about ABS here: https://www.absautoauctions.com/.
We can’t have a sale without you – enjoy the vitamin D and let’s sell some cahhs (that’s New England for “cars”)!
Dave Blake, General Manager
ABS AUTO AUCTIONS
This past weeks’ conversion rate was through the roof once again – the market is on FIRE! We are consistently selling about 1000 vehicles every week…Moss Auto Group, Gosch Auto Group, Claremont Toyota, Aaero Sweet, National Fleet Wholesale, and Center BMW led our 297 consignors over the past week. All makes and models were very strong, especially trucks.
Retail continues to slow its pace due to new car inventory shortages. Our District Managers and Operations Managers teamed up and did an excellent job of gathering inventory.
We look forward to providing you with fresh inventory again this week!
Tom Harmon, President