September 16, 2024 | Market Insights from Bob McConkey
Fall is in the air. Temperatures are finally cooling, yet the wholesale car market remains red hot. Wholesale inventories are sparce, fueling very high conversion rates and a stable market. After the huge market slide during Q4 of 2023 and Q1 of 2024, things have definitely stabilized, which is very good news for us all. Prices, while high, are well off the pandemic era levels and are not escalating at any kind of scary rate. From what we have heard on the street, retail activity has cooled for some, but the overall retail market remains pretty decent out there.
As for what’s going on at MAG, we feel well positioned in our ability to serve the Pacific Northwest market. Our core auctions of DAA Northwest and DAA Seattle continue to attract buyers and sellers from throughout the region and have had consistent sale percentages in the mid-60s to low 70s. Demand for anything decent remains very strong. As we continue to execute our PNW strategy, MAG Now has made tremendous strides. Every week we serve a growing number of customers spanning from the Bay Area to Alaska, Montana, Idaho, Oregon and beyond.
Our three-person Montana team sold 102 units for Montana dealers last week on MAG Now. Congratulations and thank you to Brandon Boulay, Jack Burns and Reed Zander. We are growing in Central and Northern California under the leadership of Ed Hebert and his awesome California team. Oregon is selling 100 plus every week with a huge contribution from Marc Wienke and his Medford team, along with Chris Vitus handling the balance of Oregon. Alaska’s team has been growing that market and MAG Alaska is now the dominant player in Anchorage. And of course, our team in Eastern, Central and Western Washington continues to work alongside our physical auctions to grow our overall market share. This amazing MAG Now team is currently selling over 350 units per week and truly impacting the Pacific Northwest marketplace. MAG Now is rolling with some of the best inventory out there and selling at a 50% clip. It is not a market segment to ignore while looking for good inventory.
There is a lot going on at MAG. We appreciate all the support from you, the fine dealers of the PNW.
On a personal note, I am so proud of this team and the young, energetic and committed team who are doing it like no one else in the business.
I am a proud Papa!
Good selling and we hope to see you in the lanes (or on our computer screens) this week!
Bob McConkey
President,
McConkey Auction Group