May 17, 2021 | A Market Update from Bob McConkey.
Here we are, mid-May 2021. The past 14 months have been like none other in our lifetime.
As I received the news that the CDC has recommended that masks are no longer a requirement for those who have been vaccinated for COVID-19 and Washington’s governor following suit within hours, I became a bit emotional. Is this the beginning of the end? Are we on our way back to normal? I literally set my mask on fire in celebration (I still have plenty of spare masks). I began to reflect on the past year, what we have all endured, and how fortunate we are to be in the car business. The shutdown, the cautious reopening, the market rebound, and then the rapid escalation into a market like none other.
I am proud of you, our customers, for your resilience and your adaptability to change. And I am proud of our team for how they have served you and have met head-on the dramatic challenges we have faced. Even with 9 weeks of in-lane sales behind us, a large majority of our transactions are by way of Simulcast. Thank you for your confidence in our process! Our customers and employees make a great team! We appreciate all of you.
So – Where do we go from here?
Come to the auction if you would like – we’d love to see you. If you are vaccinated, wearing your mask is optional. If you are not vaccinated, you will be required to wear a mask. For our team, the same standards apply. Simply stated, we need to be in compliance with the CDC and state guidelines. I am sure that as time goes on, the new normal will begin to represent the old normal.
As for the market…things have stabilized. Sales percentages are now in the 70s instead of the 90s. Supply is increasing ever so slightly. These are all good trends for everyone. Will the market collapse from the unprecedented highs of the spring? No, it won’t. New car production and supply will most likely get worse in the short term, which will keep late models at these ungodly high values for a while. By Q4 will things moderate? Yes, but again, I think we will adjust at a pace and rate that won’t leave us hanging on for dear life. We will adjust, and we will prosper together.
Thank you all for your patience, adaptation, and resilience. We appreciate you!
See you in the lanes – smiles and all!
Bob McConkey and the DAA/MAG Team