We rely on past data to make present decisions.
Let that sink in…
In the largest traded asset market that exists…used cars…we treat yesterday’s auction results as today’s reality.
We look at things like auction sale results, and use data from deals that are already in the past.
But here’s the problem…
Every other major industry…finance, real estate, commodities…builds their models to predict the future.
What happened in the past is no more than something to review
Yet in the car business, even if an auction trade happened 10 minutes ago, we treat it like it’s gospel for where the market is.
Here’s where it gets dangerous…
Companies can manipulate data.
Condition reports, sale results, and algorithms…even the valuation tools most of you use…
They control it all.
A few tweaks in condition reports or grading and they can influence the market by 5% or more.
What happens with No-Sales that were bid way above but the seller is buried? Arbed units? Does that affect market reports? Are conversion rates published?
If Wall Street operated like this, people would be up in arms.
But in the car business, we just accept it.
“Oh well”. That’s how we’ve always done it
We look to the past instead of building predictive models based on emerging tech, global events, or even gas prices.
Why are we okay with this?
Imagine a world where we start predicting instead of reacting.
Imagine valuing cars based on future market trends, not what happened at auction last week.
Imagine having the tools to truly stay ahead of the curve.
The question is: when will we in the car business wake up and stop accepting that the past determines our future?
Let me know your thoughts below
___
📌 P.S
For more like this
Be sure to follow Auto Auction Review where I will be publishing “Auctions in the News” that will be curated industry information mixed in with editorial opinion like you see above
President/Founder | AAR
My brother and I have attended the last 4 or 5 Mecum Auctions in Kissimmee- an annual "Boys Trip". We are both car guys (and me being in the business…
In Sept I bid/purchased a 2014 Jeep Grand Cherokee. It was deliver with some smoking, upper engine knocking and ticking noise and oil steadily drippin…
As some may know, in addition to being the President and Founder of Auto Auction Review, I am a buyer for a dealer group in Atlanta, Georgia. I buy p…
I’m a small independent who is getting choked out to death financially by the big corporations including the big corporate auctions. I’m certain many …
Americas Auto Auction in Pensacola: This is “my home auction” for about 20 plus years. It’s a great auction for the little guys who buy here in terms …
Long Beach Auto Auction scores again with me. Bought one today ordered my first post sale inspection on a qualified unit. LBAA informed me that…
I am a small wholesale dealer who sells all of my cars at Manheim Georgia. Recently I sold a Kia Sorento to a large buyer, and the unit went through …
What an awesome website! (My first time here!) I wanted to give a huge congratulatory message regarding Long Beach Auto Auction in Mississippi. About …
Great Auction, Amazing People…