Carmax bullish into earnings

12 Sep 2019

The new car market may be struggling but the second hand market is thriving. One disadvantage of building good cars is that folks are now tending to keep them longer, secondly recent sales initiatives like a 7 year warranty on new cars, has meant that why change when covered by warranty. Companies like Carmax are in the sweet spot of this second hand economy, as earnings approach we expect a beat.