Below is a graph of the sold units in the summer weeks for the past 3 years here at TGNA. As you can see, each year tends to trend the same. Sure there are some anomalies that can happen, but the majority of the time we can predict how large the sale is going to end up being. Here are my thoughts on each week of the month and the general tendency that produces these results:
Week 1: Wholesale inventories are lower as most lots have already been cleared by the month end.
Week 2: Typically if there is a Statutory Holiday, it’ll fall on the first Monday of the month. When there’s a holiday, it throws off the routine for a lot of businesses, including auctions and dealers.
Week 3: I have seen the third week of the month to usually be the lowest in sales volume and I haven’t completely put my finger on it yet, but my best guess is that dealerships are busy trying to hit retail sales targets and all inventory is fair game. So they hang on to everything, trying to retail it. I would love to hear your thoughts on week 3.
Week 4: Probably the most obvious week of the month, wholesale inventory reduction week.