DalePollack   |   Used Vehicle Inventory management techniques   |   Used Vehicle Inventory Hedging   |   Summary
Dale,
vAuto.com subscriber here with an out of the box concept that only you could tackle ;-)  If this idea has merit, I thought you'd want to pass this around to your most trusted advisors, so I put this on my site for easy distribution.

I was a self employed stock trader for nearly a decade. I’ve been in the Car business for last 5 years as Used Car Manager now as Marketing Director of a very large and fast growing Used Car retailer.

While working as Used Car Manager & Marketing Director of a small Chevrolet store a few years ago, I’ve noticed a nearly perfect correlation between the Manheim’s Used Vehicle Index and the S&P500. I produced charts of both indexes with identical 11 year periods and made annotations.

The correlations of direction of the trend and the dates of trend changes are just plain scary.


Notice the correlation of the direction of trends AND the dates the trends break (up and down).

Assuming the correlation is valid, this brings me to 2 issues.
#1). Used Vehicle Inventory management techniques can now be triggered by a “proprietary” outside indicator.
#2). Used Vehicle Inventory can be hedged against “market conditions” that are out the control of management.
First, the charts that I produced for management back in 2006, then onto my thoughts.
CHARTS:

Joe Pistell
Marketing Director
Sun Auto Group
UsedCarKing.com
315-396-1114














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