The used vehicle market is at a crossroads... Dealerships across the country are struggling to make sales happen. Carmax is experiencing the pinch more than most. Safe to say Carmax may be experiencing a bit of a crisis in this regard. Interest rates on auto loans are awful... even with excellent credit scores, you're looking at 7-10% APR on NEW VEHICLES... on USED VEHICLES, you're looking at 8-13%... which is absurd. People can't afford a used vehicle with an inflated price and interest rate, just doesn't make sense. Carmax currently has $3.6B worth of inventory across the US... Average "days on lot" has gone up significantly and continues to rise. Carmax isn't taking enough action to keep up with the collapsing market. They've dropped the average price per vehicle by $130-1500 across the board, but that's not enough. They need to drop their vehicle prices by another 10% in order to become a consideration for most Americans. All manufacturers are struggling right now, Ford, Chevy, GMC, Ram, Tesla, Toyota, Nissan, Honda, Hyundai, Kia, Volvo, Jeep, Infiniti, Subaru, you name it...

Carmax is a HUGE company... they have shareholders. And as such, decisions can't be made in a vacuum, they can't be made with haste. Rather, they need to obtain several levels of approvals to make impactful changes. Carmax must be nimble during this delicate used vehicle market. Things are constantly changing and prices have come down tremendously across the board... across all manufacturers. They need to speed up and become more agile, or they'll be left behind. Their $3.6B inventory will quickly become $2.5B if they don't act fast. Leaning on the wholesale/auction market isn't a long-term business model. In a sense, that is only hurting their own "long game" but underselling to auction.

Repo rates are at an all-time high, lot times are too... something has got to give. How much longer will the downward spiral go on for the used vehicle market? What do you think Carmax needs to of to correct it? Thanks for watching as always.

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