AutoNation, CarMax Rivalry: Why My Bets Are on AN

Here is a look at both AutoNation (AN) and CarMax (KMX):



My thoughts are that CarMax will hold up well during times of crisis, but when that crisis ebbs (they always eventually do) AutoNation will outperform. Of the two, the current GM (GMGMQ.PK), Chrysler dealership shedding has far more benefited AutoNation in terms of its market share.

I also am not sold on the "used car" model in the longer term. Again, in times of stress it will, while not prospering, hold its own, so to speak. I much prefer the diversity of options and product mix of an AutoNation.

Disclosure: Long AN

Comments

[Keon:]

Well new cars get bonus cash from the goverment and they won't let it count on used cars kind of backwards if 70 percent of those cars will be foreign autos not the big 3. Thise will be the ones scrapped. Well if I don't say give 4500 to buy a new Vehicle Most Amercian cannot afford buy buy a 1 old car with ten thousand miles for 3000 less and if they had rebate cfc they would get better gas and not buy a vehicle that declines as you drive it.

Aug 04 05:05 PM