5 minute read
The Value & Future of the Used Car Dealer
the VALUE & FUTURE
Advertisement
of the Used Car Dealer
BY ROBERT HOLLENSHEAD
ROBERT HOLLENSHEAD
I think I’ve said this many times in the past but I’m going to say it again. I hope it doesn’t sound corny.
The independent used car dealer is the backbone of the auto industry, yesterday, today, and deep into the future. We are the oil that allows the engine of the auto industry to run.
When we look at the statistics, the indisputable facts with all the noise that surrounds us, one thing remains chiseled in granite. Without us it all grinds to a halt just like any engine without oil. Let’s take a second to think about why I’m saying this.
At any auction, in any marketplace, the overwhelming majority of the time we are the best end user, the buyer, the entities that absorb the inventory. If we were not participating where would these cars go? It’s not to a franchise dealer. Look at who buys at CarMax, Manheim, Adesa, America’s, ACV, Backlot, even Smart Auction, 87% of the time it’s us. The overwhelming majority, like way overwhelming majority of buyers are us, Used Car Dealers. In the case of the largest auctions who are the sellers? By far, Us, Used car dealers.
Think about this. If you added up all the units the big names buy and compare it to what we buy it turns out they buy a fraction, we buy the rest (even though we get no respect just like the oil in the engine gets no respect, till there ain’t none).
What would happen to these millions of cars if we disappeared? All the flunked shop cars, the miley cars, the hyper expensive cars down to the trash cans, where would they go? We spend 70-95% of our time (frequently 10-15 hours a day) chasing them. Who else does? Who else would?
With all the hype around EV’s and home delivery there’s still going to be a trade. The orphans, the aged, the misfits, are still going to go to some version of a marketplace. We create/generate nearly all the fees that keep all marketplaces alive. We will still be the liquidity that makes them disappear regardless of how new cars are sold. With all the hype around Vana’s this and Max’s that, without us they too evaporate. Even if the franchise model is altered, all we will do to thrive is adapt.
So, I guess this leads to the underlying point and the future. We ain’t going away. Ain’t no shot of that happening. We are here to stay. We simply evolve to the circumstances. We will continue to make up for the lack of intelligence/education by out working smart people that have to, to liquidate their assets.
I believe there has never been a better time to be in this industry as an independent dealer. If you like freedom, if you like to live by the wits the maker bestowed on you, and if you love the challenge of only being limited by yourself, what could be better? It don’t mean anything but I love us. We will always be the backbone of the industry. It sounds silly but I love a Used Car Dealer. And last but not least, I love and am thankful to God (or whoever is responsible for creating the used car industry).
In closing, I have reached out countless times To the PIADA for advice and help, they have always been there to assist. Not that we have a magical power, but if there is ever anything we can do to help any of you we are a phone call away. My phone number is attached. Don’t expect miracles but I’ll do whatever I can to listen and help.
Robert Hollenshead began in the BidNez in October 1972, and has since been selling at Manheim Pa. for 2,500 consecutive weeks. Robert entered the technology development side in 1999. He developed the first platform enabling an instant cash offer for any car, decades before all the versions in the market today. The first national platform was sold by AutoTrader called The Trade-in Marketplace. After 40,000,000 plus offers, all guaranteed by R Hollenshead Auto Sales, he sold to Cox Automotive and is known today as Kelley Blue Book ICO. He went on to buy Galves, the valuation guidebook that has been an industry standard since 1957 and built Accu-Trade, a multi-faceted valuation, market data, condition report, guaranteed product. The Canadian version of AccuTrade is sold today by Trader Canada as Trader ICO. TrueCar under the leadership of Chip Perry invested and continues today to be the basis of TrueCar Trade. After integrating the VINtel EKG into the platform, which is a patent pending industry first he sold AccuTrade and Galves to CARS.com. He believes the fun is just beginning. To reach Robert: (610) 960-6346.
America’s Auto Auction Lancaster celebrated their 10th Anniversary sale on Wednesday, March 23rd. The auction had 1000+ units and $10,000 in prizes and giveaways! A great time was had by all! Be sure to check out their weekly sales, every Wednesday at 8:30am. Congratulations to Founder, Greg Gehman and the entire staff at America’s Auto Auction Lancaster!
America’s Auto Auction Harrisburg celebrated their 40th Anniversary sale on Thursday, April 7th. The auction ran 1,500 units, had over $20,000 in prizes and giveaways, including free t-shirts, hats, and lunch! The Association was in attendance along with annual Sponsor Advantage Automotive Analytics. The event was a huge success! Congratulations to GM, Clint Weaver, and the entire staff at America’s Auto Auction Harrisburg! Be sure to check out their weekly sales every Thursday at 8:45am.
