Last updated Friday, Decmeber 3, 2004

Having experienced a typically difficult November market, we expect that December will bring some relief. The fact is, over the last few years November seems to have been the most difficult period of the year for used vehicle wholesale. It has been an excellent time to buy, but a very difficult time to sell. December has, in the past, been less difficult and we expect that to be true for this year. The books have adjusted, dealers have adjusted their expectations, there is some optimism for the coming post holiday market, we often see a burst of business in the compressed selling period that December offers: for all these reasons December usually brings a kinder, gentler market than what we experienced in November.

We think that you can expect to see some fine-tuning in the books, especially among very late model vehicles and luxury makes, but that by and large the books have already seen the bulk of their depreciation. We suggest continued caution with any of the vehicles that are out there in large quantities. The demand is simply not sufficient to absorb them at the moment.

Finally, we wish you all the best of holidays and hope that you find some time to enjoy a break in the frantic pace that has been the norm for many of us over the course of a relatively difficult year. It is worth remembering how cyclical this business can be as we look forward to good times ahead in 2005. 

Dan Galves