South Bay Auto Auction Service Announcement
March 27, 2020
As the COVID-19 crisis continues to affect us all, the management of South Bay Auto Auction and South Bay Remarketing Services primary concern is, and has always been the safety of our employees. We continue to adjust our day- to- day operation accordingly.
As of this morning many franchise and used car dealers are not open and flooring companies are suspending their flooring lines. Also, there has been a 75% drop in the demand for vehicles.
You need to be warned to be prepared for a drastic reduction in sales results. If you were getting 75 - 90% of wholesale value, you should expect 50% of wholesale on vehicles being sold during this crisis. If this does not sit well with your management, you should consider holding your inventory from sale, accept the depreciation, and remarket vehicles in May or June. However, you also run the risk of future or extended shutdowns beyond May or June.
If you are not in need of the cash flow and can hold and remarket in later months, we will help you in anyway possible.
Stay safe and stay healthy, we will all get through this together.
Sincerely,
South Bay Auto Auction