MARKET UPDATE

Over the past three days, we've witnessed a modest uptick in market activity, characterized by an increase in both the number of sales and the total market value of vehicles sold. On Friday alone, we observed transactions totaling $6 million, and over the weekend, that figure rose slightly to just over $6.2 million.

It makes me wonder if January is gradually building momentum, setting the stage for a potentially vibrant February. However, before we get too carried away with our expectations, it's worth noting that there are numerous exciting auctions lined up for this week. We'll be covering many of them right here in The Daily Vroom, so stay tuned for the latest updates. Below is the top sale over the last 3 days - how beautiful is this!!

The year didn't kick off with much vigor, as we only saw a total of less than 20 sales in each of the early months. Things didn't significantly improve until June, which interestingly aligned with their first partnership of the year. During that period, they listed and successfully sold 30 cars from the Retro Motors Collection.

August marked another noteworthy milestone with the introduction of the Vault Collection of Boca Raton. However, the true climax of the year occurred towards the end when they concluded with a bang. The year wrapped up on a high note with a spectacular finale – a total of 50 No Reserve Auctions featuring the remarkable George Forman collection.

In the above chart, you'll find a breakdown of vehicle sales month by month. It's quite evident that the collections they introduced in June, August, and notably in December (where they presented two collections) played a pivotal role in driving car sales. Below we have a graph depicting quarterly sales which shows nice growth each quarter.

For those of you that like to see a more granular detail of the sales timeline, here you go 😀.

Above, we have a list of the top 10 vehicles that made significant sales last year. It's quite undeniable that the Ford GT took center stage, leaving an indelible mark on the rankings.

The fees that Hagerty ought to have collected are depicted in the figures above, totaling $1.27 million for the year. It's worth noting that these numbers are based on the assumption that every deal materializes, which, in reality, is quite improbable, if not impossible. There will likely be a small percentage of deals that do not come to fruition for various reasons. Additionally, it's reasonable to assume that there may have been some fee negotiations when they were initially establishing their business.

You can clearly observe spikes in sales activity during the months of June and December, aligning with the auctions of those notable collections.

Their average sell-through rate throughout the year was an impressive 74.5%. This figure was undoubtedly boosted by the inclusion of numerous no-reserve auctions, particularly the George Foreman Collection.

It appears that their specialty lies in the 1960s and 1970s, a distinctive focus compared to the rest of the market. Interestingly, the standout year for them in terms of sales was 1967.

During the 1960s and 1970s, as it is today, Ford and Chevrolet were among the most sought-after makes. With Hagerty, they managed to sell an impressive 73 out of 106 Chevrolet vehicles they listed and 69 out of 89 Ford vehicles they had on offer during that period.

In our community's favorite chart highlighting the most popular day of the week, it's clear that Thursday is the day when significant transactions take place, attracting the big money!

In summary, I must admit that I was quite taken aback by the overall results from Hagerty, particularly since I closely monitor their performance on a daily basis. The first half of the year left much to be desired, and I believe that initial disappointment colored my perception of their year as a whole.

Evidently, Hagerty seems to have grasped the significance of featuring substantial collections, many of which are offered with no reserves, as it proved to be a lucrative strategy for them. The challenge lies in sourcing such collections, as it's not something that can be done on a weekly or even monthly basis.

That said, I can only imagine that within the walls of Hagerty's headquarters, there's a sense of relief regarding the latter half of the year. While they may not be ecstatic with the results, and I believe this sentiment is shared by most I've spoken to, they did make considerable progress. If you follow my daily leaderboards, you'll notice that Hagerty rarely makes an appearance there. They still have a considerable gap to bridge to catch up with the major players in the market. A critical factor contributing to this disparity is the number of vehicles they have available for auction. The challenge of consistently sourcing a high volume of vehicles is a daunting one.

The question for 2024 is whether they can crack the code for this. At present, if you peruse their press releases and videos, you'll find minimal mention of their online auctions. There's a reason for this; the results haven't yet aligned with their expectations.

I was cautiously optimistic when they initially launched, believing they could take on the industry giants. Then came the first five months of 2023, and my optimism waned. However, reflecting on the past six months while putting this analysis together, I'm revisiting my stance. Among the platforms that don't consistently feature in The Daily Vroom's market leaderboard, Hagerty appears to have the best shot at consistently securing top positions.

Nonetheless, I firmly believe that a substantial change is required for them to compete consistently at the highest level. Without the collection component, I struggle to see how they can amass enough listings to challenge on a regular basis. I'm open to being proven wrong, and I hope to witness a remarkable turnaround in their fortunes.