Case for Used Cars

Case for Used Cars

May 5, 2022

Auto-related stocks are highly speculative. A look at the Manheim index for used car prices shows its upward trajectory exceeds that of benchmark equities indices and even certain cryptos. Analysts at KPMG warn that as supply chain issues are resolved, used car prices could plummet as much as 20-30%.

What they're saying: AutoNation CEO Mike Manley, however, thinks the inflated prices are here to stay. “We will not return to excessively high inventory levels that depress new-vehicle margins,” AutoNation CEO Mike Manley said. “Significant discounting and high incentives can also damage a brand, which is another reason for our industry to balance appropriately supply and demand.”

Soaring vehicle prices and increased sales of used cars helped AutoNation post record profits during last earnings report.

Trade in that buy and pray strategy for a defined outcome on CARG, CVNA.

Source: Bloomberg, Yahoo Finance

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© 2024 Olive Advisors Inc. All Rights Reserved.

By using this website, you accept and agree to Olive's Terms of Use and Privacy Policy. Olive's investment advisory services are available only to residents of the United States in jurisdictions where Olive is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. All performance information is shown for illustrative purposes only and excludes the impact of fees and taxes. The content on this website is for informational purposes only and does not constitute a comprehensive description of Olive's services. For more information information on risks associated with options, please see disclosures.

Information provided by Olive Advisors Inc. is for informational and general educational purposes only and is not tax or financial advice.

Contact Olive at support@oliveinvest.com. 31 Hudson Yards, New York, NY 10001

© 2024 Olive Advisors Inc. All Rights Reserved.

By using this website, you accept and agree to Olive's Terms of Use and Privacy Policy. Olive's investment advisory services are available only to residents of the United States in jurisdictions where Olive is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. All performance information is shown for illustrative purposes only and excludes the impact of fees and taxes. The content on this website is for informational purposes only and does not constitute a comprehensive description of Olive's services. For more information information on risks associated with options, please see disclosures.

Information provided by Olive Advisors Inc. is for informational and general educational purposes only and is not tax or financial advice.

Contact Olive at support@oliveinvest.com. 31 Hudson Yards, New York, NY 10001