September 30, 2016
September 2016 is officially in the record books, and with that, fall is also officially here. The market is for sure beginning to experience a bit of a cooling off. DAA Northwest powered through it last week during Montana Days, but this week was different. Dealers have forgotten what a typical fall market feels like. The market is in a much anticipated typical adjustment period. We are experiencing what we have always called a “seasonal adjustment”, and not even a big one at that. Both DAA Seattle and DAA Northwest had sales percentages in the low 50s this week.
I would now like to talk about the truck market. Since 2009 the retail truck and SUV market, both new and used, has literally doubled in volume. In the midst of a record new vehicle sales year, mid-sized cars are off 27% in the 3rd quarter. What is that about, making up the difference? Trucks! Trucks are hot. The 5 top selling new vehicles currently are: Ford F-Series, Chevrolet Silverado, Ram, Honda CR-V and Toyota RAV 4. Used demand segments mirror new demand. Trucks are where the used market is. DAA has one of the broadest most robust selection of trucks in the industry.
We cannot talk about truck supply without discussing the impact of Canadian imports on the marketplace. Canadian trucks have supplied the demand that all of us have taken advantage of for the past two years.
The DAA approach to remarketing vehicles imported from Canada is based on nearly 40 years of experience in handling Canadian imports. We have seen it all over many cycles. Through our experience, we have developed and implemented a strategy focused on providing the best product and value for US retailers to sell into the US market. DAA partners with a finite select group of high quality importers, most all of which we have known and done business with for 10 to 20 years. Our focus is to go beyond the strict legal requirements that govern the process. Our goal is to provide a diverse selection of high quality merchandise that is properly prepared for the US market, and that as a buyer that you can trust the product you buy and most importantly the supplier you buy from. Our commitment is that in the event there is ever an issue related to an imported vehicle you have our assurance that it will be taken care of swiftly and painlessly.
Canadian vehicles done right are good business. We are all fortunate to have them in the marketplace. The trucks supplied from Canada continue to provide the fuel for the retail demand that would be strangled by lack of supply without their presence. The question is not whether or not to buy and sell Canadian trucks. It is where do you buy them? Not unlike any other wholesale purchase, do you trust the process and those that stand behind it?
See you in the lanes next week.
– Bob McConkey
Quote of the week: “Honesty is the best policy.” – Ben Franklin