CARMAX is signaling the collapse of the car market. With new vehicle inventory climbing at an unprecedented rate, dealers are having to SLASH prices left and right and incentivize deals with exceptional interest rates. When new prices are discounted by 1020%, where does that leave the Used Vehicle Market? Not good at all for a company like Carmax where they take a long time to make changes. Carmax is a beast of a company with stakeholders to appease. Making drastic price cuts can't happen overnight, they need to seek the necessary approvals. This process forces them to ALWAYS be behind the game. The market is quickly falling and CARMAX can't keep up. Carmax NEEDS to be agile in a time like this if they want to succeed. They need to make organizationwide decisions and changes swiftly in order to keep up with this volatile market. Would you agree?

The cars on this Carmax lot are easily 1520% overpriced. In this video I highlight some recent stats that are indicative of what the car market is doing right now. Carmax stock dropped 19% over the last 3 weeks... their yearoveryear net income saw a 27% LOSS... Since reporting those losses, they saw an instant drop in stock cost. Carmax purchase 14% less vehicles from people last quarter, and a 45% increase in vehicle purchased from other dealerships. This is a clear indicator of where we're at right now. Average price per unit has only seen a $600 drop across the board, all while CARMAX sustained their average profit margin per vehicle of $2200. Kind of insane...

New inventory is through the roof right now... dealers are having to take desperate action to sell their inventory. With each passing month, Carmax is LOSING MONEY. The longer a vehicle sits on their lots, the more it'll cost them. And well, I can honestly say... a good chunk of the vehicles on this lot have been here for over 45 days now. That's not good.

Let me know your thoughts. Have you seen your local CARMAX continue to do well during the pandemic? Or are they stacked with vehicles that they've had for months? Thanks for watching as always. If you found ANY value in this type of content, please consider Liking and Subscribing. Your support means a lot and I certainly appreciate it! Thank you.

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