Car Guy

CarMax: Running On Fumes

I am not necessarily bullish on CarMax, but there are plenty of holes in this argument.

First, there is still plenty of reason to buy used vehicles. For example, new civics are such hot sellers that dealers are now charging $1000 over sticker - plenty of reason to go for a used civic.

Second, the author seems to be talking out of both sides of his mouth here. He initially points to "rapid price declines of over 15% year to year in widely owned gas guzzlers"

Next, he points out that "new car dealers are offering almost giveaway incentives which slows traffic at the CarMax lots. Why buy old when you can buy new, if a gas guzzler is what you want?" Didn't you just say that prices of used gas guzzlers are down 15%?????

Lastly, he provides no justification at all for his $12 price target.

Please don't post any articles unless you have something meaningful to say.