Case for Used Cars
AutoNation CEO Mike Manley thinks inflated auto prices are here to stay. Here's how to capitalize on used cars.
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.