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I am a thief

 
For years I have been resisting that title.....
Through all the negotiating involved with buying and selling cars.....
I wanted to break the stereotype that wholesalers are thieves.....
If a wholesaler is buying it, he (or she) must be stealing it.....
And when I think back on all the cars I lost money on.....
I would get very indignant when someone made that comment to me.....
I'm sure this is the thought process that has fueled the drive to eliminate auto wholesalers over the last 10-15 years......
Manufacturers, 20 groups, franchised dealers, and auctions have all done a great job of thinning our herd.....
And yet.....
We're still here.....
As are thousands like us all across the country.....
How can that be?
Surely all the so called experts have shown new car dealers the best way to wholesale their own cars.....
Surely the auction houses have demonstrated that the best way to sell your trades is with them......
Surely you know that online sales are growing and there is no longer a need for wholesalers.....
Well.....
All those statements are true.....
To some extent.....
But here's the thing.....
Each and every used car, truck, SUV, van, whatever.....
Is unique.....
There aren't 2 that are exactly alike.....
Like snowflakes.....
And for retailers to market every vehicle to the ultimate destination to get THE most money.....
Requires that you have every single system and every single option in place.....
To find THE end user for EVERY SINGLE TRADE !
WHEW!
That is a mouthful.....
And also impossible.....
So.....
Here's where wholesalers come in.....
WE go to live auctions looking for what's not at the right venue.....
WE go to online auctions looking for what does not have the right audience paying attention.....
WE go to new car dealer sealed bids and win cars that we can take to OUR ravenous market.....
WE visit dealers who still sell directly to wholesalers and ask how much something is .....
It's ARBITRAGE.....
The weaknesses in the system.....
Every system has them.....
And if you want to call me a thief.....
For taking advantage of those weaknesses.....
Go ahead.....
But I'm still going to write the check.....
And you're going to cash it!
 
BAM !!
100% SOLD !
Utopia.....
I'm so smart.....
BAM !!
I'm out of cars.....
S***.....
I'm out of cars.....
And I can't find any.....
For whatever reason.....
Supplies of used cars and trucks is very low.....
Figures.....
Just when the spring market is getting into high gear.....
No one has any wholesale trades coming in.....
And it's to be expected.....
Our bread and butter.....
The under $10,000.00 price range car.....
Doesn't exist.....
Because they were never sold new.....
Those would be the model years 2008 - 2012.....
And you all remember how bad new car sales were then.....
PLUS, leasing has increased....
No trades there.....
AND.....
I'm sitting here writing this watching 19 inches of snow fall.....
( I went out and measured it !)
IN MARCH.....
That's not helping.....
As a matter of fact Manheim had the good sense to cancel today's sale in Fairfield N.J.
So.....
All we can do is be persistent......
Stay alert.....
Do our homework on what IS selling.....
And know that it will stop snowing some day......
Won't it?
I mentioned a couple of weeks ago that I was struggling a bit with getting cars listed on OVE.com.....
Prices have gone up across the board .....
And there was a lag in MMR's (Manheim Market Report Averages)
I couldn't list them high enough because of the algorithm cap.....
Seriously.....
We sold some some cars at live auctions for more than OVE.com would let us list them at.....
But that situation was temporary.....
The algorithms caught up.....
And buyers have been participating.....
We have averaged 35% over the last two weeks.....
So.....
Do't be afraid to go over what OVE.com suggests for a list price.....
If you've done your homework.....
And it's justified.....
Most of the action is on 2010 - 2014 model years.....
If you can find them (see above rant ).....
 
 
Auction Buzz
Auto Arbitrage Formula
Dealer Hacking Podcast
Rechtschaffen Motors
Instagram
My goal in the coming weeks is to focus on our Dealer Hacking Live Podcast.....
We're going to put out a broadcast once a week from different automotive locations (mostly new car dealers)
And really dig deep about their wholesale practices.....
Who they sell to.....
Where they sell them.....
How successful they've been.....
How they can improve.....
And their major pain points.....
So.....
This is where you come in.....
I NEED HELP WITH:
Setting up and broadcasting from these locations.....
Getting feed back so I have the questions you want answered.....
Submitting them to the iTunes podcast directory......
And just over all things necessary to put out some quality content.....
If you're in the Northeast , love the car business and would like to get involved email me at rechtschaffenmotors@gmail.com
And.....
I can't believe I'm saying this in March.....
I have to go shovel the driveway.....
 
out for now
 
Barry J. Neuman

Views: 35

Tags: automotive

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