Market Conditions 12/02

What can we say. It’s December, and the market is typical for December. Which means there really isn’t much of a market. Unless you have a very desirable car that commands something of an audience selling a vehicle at the moment is essentially a losing proposition. With rare exceptions, the only buyers are looking to steal, and you really can’t blame them. There is very little retail action and therefore very little need to replenish inventory. The smart buyers are building up inventory for the expected spring market, but they are clearly looking for a significant price edge and pass anything that doesn’t fit their idea of significant. If you are buying to re-wholesale, you definitely need to buy cheap.

You’ve probably noticed that the books have stabilized recently. There comes a time when dropping the book doesn’t make sense even though dealers are clearly looking to buy under book. No matter how much, within reason, you drop the book, dealers still want to buy for less, and continuing to drop prices in the face of that reality is unproductive. We fully expect that come mid-January we will have to consider raising prices to reflect the increased activity that usually occurs early in the new year.

We want to thank you for your continued support and look forward to serving you in 2003. Until then, we wish you and your families the very best of holidays and look forward to a more stable and prosperous economy in the new year.