June 28, 2021 | Market Insights from Bob McConkey.
I feel like we have all been on a rollercoaster ride for the past 15 months. It seems like there are few signs that this wild ride of ups, downs, and all-arounds will end any time soon.
What we all have dealt with historically in terms of seasonal market fluctuations now seems like nothing. The current market dynamics are on steroids, unprecedented, and a bit dangerous. Never has the used car market been a consistent headline across every form of national media. Used car values are now a leading indicator of inflation! That’s a crazy first! The media is now reporting what we’ve been experiencing for close to a year. That tells us something about our mainstream media…
The market has definitely peaked and is beginning to soften. Sales percentages in the lanes are dropping to more normal levels – this is a good thing. We need stability. I am confident we won’t see any drastic collapse in prices but more of a slow orderly move downward. The demand on the retail side has peaked, but the basic shortage of new cars will keep the nice used ones in strong demand. Higher mileage trucks and rougher trade-type units are definitely softening and will continue to, in my opinion.
We need a market adjustment, and we are getting one. We just need an orderly one that does not take a pound of flesh from all of us in the process. While the past 15 months have indeed been a rollercoaster, it has been a great ride! We are heading toward post-pandemic normal; we just don’t really know what that looks like.
Speaking of post-pandemic normal – we are all ready for a good party, and DAA Northwest’s Rock and Roll sale 2021 is on! August 25th and 26th! The Barenaked Ladies (the band) will be on the DAA stage Wednesday evening, August 25th. Mark your calendar and visit magauctions.com/rockandroll for sale, party, and concert info. We’ll be updating the page regularly, so check back often!
We are so pumped to throw a party and we can’t wait to see you, our dealers there!!
Bob McConkey, CEO