Not addressed are the false profits shown by many of these companies. By not acknowledging inventory shuffling to LLCs which hide holes in the balance sheet, OEMS and dealers (not all of them) show “profits” for fleet sales to an in-house LLC. Very Enron/Jack Welch type of accounting at many of the newer firms.
Used car prices, at auction and repo wholesale auctions, are falling like anvils sinking into the Marias Trench. Cox Automotive and Kelly Blue Book recently showed a tiny 4.5% growth in resale prices. But machts nicht. It’s the “hidden” inventory which must either be totally written off, OR, sold at a major loss from 2020-2022 prices.
I still would not be rushing to buy a good used car today. I’d wait at least til Q2 to reassess the landscape.
The used car dealer near me is having a hard time selling his inventory at these high prices and high loan interest stretching for 84 months (the new norm). So the guy who owns the place has now branched out into trailers and if there’s a tell about the Keys, these trailers (the covered kind with walls and a roof) for moving household articles are selling like hotcakes.