CarMax shares could drop 20 pct as charge-offs, risky loans rise -Barron's
[Reuters] - Shares of CarMax Inc, the biggest U.S. used car dealer, are vulnerable to a 20 percent decline if investors are unnerved by falling used vehicle prices and weakening credit quality when it reports its results, Barron's said on Sunday. CarMax's captive auto finance unit contributes about 40 percent of the company's operating income and could come under pressure as defaults and delinquencies rise, the report said. Last year, the company rolled out an online financing initiative to help customers pre-qualify for a loan before a store visit, hoping to improve customer conversion rates.
via Yahoo! Finance: Auto Dealerships Industry News http://ift.tt/2jQs6Pw
April 2, 2017 at 09:06AM