Yes, I am aware of the inventory issues. On that last part, you shouldn’t jump into conclusion that I made “unreasonable” request. I am not a long-timer at LH, but I am also not a newbie where I just reach out broker with “unreasonable” request.
You’re asking me to remember what I used 5 days ago? It may have been cars.com or cargurus.com or Auto Trader, but also may have been the bmw inventory search tool.
Notice how you asked him more than once what car he is looking at and he continues to completely ignore that? I think now you can imagine why no one replies…
But whether it’s a publicly-traded group or a single, locally-owned dealer, these are the very best of times, said Ali Faghri, an analyst at Guggenheim Partners, who follows dealership stocks.
“All will deliver record earnings,” Faghri said. “I think prices have probably peaked. But these market conditions will probably continue until 2023.”
“Demand continues to outpace supply for new vehicles,” said AutoNation CEO Mike Jackson. “We expect this to continue into 2022 due to consumers’ preference for personal transportation coupled with lower interest rates.”
But even with the increased costs to acquire used car inventories, car dealers are making more than ever before on used car sales. Carmax, the largest used-car only dealership, has already reported record profits as AutoNation did on Monday, kicking off a string of record earnings in the sector.
So check this out. Used cars with 6 digits on the odometer are up 31% from last year. Imagine paying 31% more, thousands and thousands of dollars more for a car that has over 100k miles on it. How desperate are consumers at this point in the game where they need a car and are paying this kind of money for a used car.
Jul 19, 2021
Very Used Cars: High-Mileage Models Are Now Selling For Big Bucks
According to the valuation experts at Edmunds.com, the average pre-owned vehicle on a dealer’s lot that’s racked up between 100,000-109,999 miles rose in value by 31 percent over the past year, from $12,626 in June 2020 to $16,489 last month. That’s right, they actually increased in price by nearly a third. It seems everything we thought we knew about used car prices is now wrong. The notions that a vehicle is virtually guaranteed to depreciate over time, losing at least half their original value after five years, and that models with more than 100,000 miles on the odometer are a tough sell to all but the most cash-strapped motorists no longer apply.