The Red-Hot Market: How Long Will it Last?

Obviously, everything is different these days.

The 2020 Rock & Roll Sale was no exception. It was a completely virtual event in every respect. I look forward to getting us all back together next year for a “real” old fashion Rock & Roll Sale. This year’s sale was awesome in its own way. 2400 total consigned and 2000 sold for an 83% overall conversion rate. While the volumes were obviously way off, (a sign of the times) the sales percentage was again off the charts.

The big question on everyone’s mind is how long will this red-hot market last?  I personally did not expect it to go this long at this pace.

It seems like franchise dealers are going to see some new car inventory at some point late this summer and into the fall. This will be a catalyst for a late model market adjustment. There are lots of factors at play beyond new car inventory. What the government decides to do in terms of a new round of economic stimulus will obviously be a factor going forward. In the meantime, we are all working on a very short vision of what is to come. We all wake each morning and figure out what the day’s reality is, then we deal with it appropriately.

I hope you and yours are all healthy. I hope your business is doing well in the midst of all of this. I think we can all be thankful for the business we are in. There are many industries that will forever be changed or even disappear as a result of the pandemic. The car business, however, is truly essential to America and to Americans.  We will continue to pivot and meet each day’s challenges as they arise.

Thank you for your continued support.

- Bob