Latest news with #usedvehicles
Yahoo
2 hours ago
- Automotive
- Yahoo
CarMax Stock Jumps After Tariffs Boost Used-Car Demand
CarMax (KMX, Financials) shares surged more than 6% Friday morning after the company posted better-than-expected first-quarter earnings, driven by the fastest growth in used-vehicle sales since 2021. Warning! GuruFocus has detected 4 Warning Signs with KMX. The company's performance comes amid a shift in consumer behavior following the imposition of new auto tariffs by President Donald Trump in March. The 25% tariff on foreign-made vehicles and certain auto parts has disrupted the supply of new cars in the U.S., increasing demand for used vehicles. CarMax is one of the first major automotive retailers to show clear benefits from the policy change. The company's results suggest that pricing power and unit sales have improved as consumers seek alternatives to higher-priced new models. With Friday's gains, CarMax stock is headed for its strongest single-day performance in two years. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
2 hours ago
- Automotive
- Yahoo
CarMax Stock Jumps After Tariffs Boost Used-Car Demand
CarMax (KMX, Financials) shares surged more than 6% Friday morning after the company posted better-than-expected first-quarter earnings, driven by the fastest growth in used-vehicle sales since 2021. Warning! GuruFocus has detected 4 Warning Signs with KMX. The company's performance comes amid a shift in consumer behavior following the imposition of new auto tariffs by President Donald Trump in March. The 25% tariff on foreign-made vehicles and certain auto parts has disrupted the supply of new cars in the U.S., increasing demand for used vehicles. CarMax is one of the first major automotive retailers to show clear benefits from the policy change. The company's results suggest that pricing power and unit sales have improved as consumers seek alternatives to higher-priced new models. With Friday's gains, CarMax stock is headed for its strongest single-day performance in two years. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
3 hours ago
- Automotive
- Yahoo
CarMax pops on Q1 earnings: The journey to catch up to Carvana
CarMax (KMX) stock gains after reporting an earnings beat driven by strong demand for used vehicles. Wedbush Securities managing director of equity research Scott Devitt outlines the results and the used car retailer's efforts to catch up to Carvana (CVNA). To watch more expert insights and analysis on the latest market action, check out more Catalysts here. CarMax is rising after topping first quarter expectations with sales rising nearly 6% from a year earlier boosted by strong demand for used vehicles. Joining me now, we've got Scott David, who is the Vedbush Security's managing director of equity research. Great to have you here with us. So, you have an outperform rating and a $90 price target on the stock. How are you looking at CarMax right now? I thought it was a good quarter. You know, retail units were up 9%. Um, it was a record high gross profit dollar per unit. Um, so it was a good quarter. You know, this company is uh constantly playing catch up with Carvana. And um, I think Carvana is making it a better company, but it's a slow progression. You know, and they've shown some some signs here of strength. I think the asset long-term is mispriced favorably, but um, you know, but it but it's uh it's kind of a steady as she goes and they have to keep executing. You know, we're continuing to look across this gross profit and and I wonder your evaluation of their gross profit and it did increase by 13% in the most recent quarter driven by higher unit volumes, strong unit margin performance here. But so much of this business is making sure that when they are purchasing cars as well that they're purchasing cars that are favorable enough for them to then be able to flip and add on that margin. What's your own assessment of the margin run rate that they're going to be able to achieve over time here and and grow to even get more shareholder value returned? So what's happened in the past 12 months is that retail prices have been rising faster than wholesale prices, which is good for a retailer like CarMax because they capture that spread. I think what you're going to see potentially over the next 12 months is that um, that that gap tightening a little bit, which will be, you know, somewhat of a headwind, but from a sourcing standpoint and a scale standpoint, it's really kind of a two-player game. You know, 90% of this industry is sold by small mom and pop still. And CarMax and and particularly Carvana, you know, are consolidating the industry at the at the kind of head of the industry. Um, what's notable, you know, is within the next three years that Carvana is going to start to approach and potentially exceed CarMax units. So that'll be important to watch. I think both companies can win. Um, but there's one, you know, performing at an A+ level and and and that's Carvana. And I think, you know, CarMax is probably a BB+ right now and the rest of the industry is a C.
Yahoo
5 hours ago
- Automotive
- Yahoo
CarMax pops on Q1 earnings: The journey to catch up to Carvana
CarMax (KMX) stock gains after reporting an earnings beat driven by strong demand for used vehicles. Wedbush Securities managing director of equity research Scott Devitt outlines the results and the used car retailer's efforts to catch up to Carvana (CVNA). To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Zawya
2 days ago
- Automotive
- Zawya
South Africans prefer Toyota, VW and Ford when purchasing used cars
South Africans prefer three brands when choosing a used vehicle: Toyota, Volkswagen and Ford. According to Lightstone Auto, these brands make up half of financed used vehicle sales in 2025. Insights drawn from Lightstone Auto's transactional data reveal clear trends in consumer preferences when it comes to financing used light vehicles, with these three brands emerging as the top choices among South African buyers so far this year. Interrogating the most popular vehicle types, the Ford Ranger Double-Cab and the Volkswagen Polo Vivo both lead with a 6% share of financed sales, followed closely by the Volkswagen Polo on 5%. The Toyota Hilux Double-Cab and Suzuki Swift ranges currently round out the top five. 'Looking at how buyer preferences in the used vehicle space have changed over the last five years, four of the five have appeared in the top five used vehicle types consistently since 2020. The remaining spots in the top 10, however, have rotated among ten other vehicle types over the same period,' says Andrew Hibbert, auto data analyst at Lightstone. Fuel-type preferences have remained largely stable over the past five years, with the split between petrol and diesel-powered vehicles being fairly constant, but it is noticeable that the growing popularity of hybrid and electric vehicles is slowly beginning to make inroads among used vehicle buyers. The market share of these vehicles doubled in 2024, and so far in 2025 they account for 1% of all used light vehicles being financed – a small but notable shift. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
