Dale Pollak and Dennis McGinn: Key Insights About The Used Car Market

Fixed Ops Roundtable

Dale Pollak, the founder of vAuto, and Dennis McGinn, the owner of Rapid Recon join the Fixed Ops Roundtable to share their perspective on the used car retail market and some key, data-driven insights about where things might be heading in the near future.

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Key insights from this episode about the used car market:

01:40 - 2021 was a most unusual year in the retail automotive industry. Dale Pollak expresses that it's certainly the most unusual year that he has observed during his four-decade career within the auto industry.

"Aspects of the last year is that we saw a used car market, which throughout the entire year virtually all of the year appreciated. That just doesn't happen! We know that automobiles are a depreciating asset and yet across virtually every sector, a vehicle, every price class, appreciated."

03:44 - Cox economists have revised their 2022 trend forecast of used vehicle retail sales down approximately 500,000 units. What Dale believes will occur in the balance of 2022 is a seasonal depreciation trend that will likely be accelerated. We will continue to see rising interest rates which create headwinds for automobile buyers.

05:12 - Dale believes that more potential retail buyers will choose to hang onto their existing vehicles which have created a spike in business for fixed operations, maintenance, and repair which is all trending upward across the nation. That's not without its own challenges which include supply chain shortages for vehicle parts as well as shortages in the workforce.

10:14 - Dennis McGinn shares that vehicle reconditioning is a great are for dealers to find opportunities for improvement. He shares that last year (2021) dealers really couldn't do any wrong, but as we experience more margin compression in the coming weeks and months, it's important for dealers to pay closer attention.

Listen to the full episode featuring Dale Pollak and Dennis McGinn for even more insights!

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Thanks, Dale Pollak and Dennis McGinn!

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