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• YAHOO BUBBLE BREAKER FULL SIZE

I'm getting ready to go out for a cruise with my sunglasses on.

My take is this, auto retail stocks are probably dead money for right now. But we expect the entire retail, auto retail franchise and auto credit complex, to follow. Noting, CarMax might be first on in feeling the impact of the used-car decline. Overall- a good quote here, too, I'll just add, too, from Adam Jonas at Morgan Stanley. So if those car prices are coming down, that's less of a valuation- or less value assigned to the Hertz and Avis Budget rental fleets or their inventories. Now, why did I include them in here? Because you know, a lot of times their stocks trade off the perceived value of the inventory, or the car inventory, that Hertz and Avis own. Carvana, an online-focused retailer of used vehicles. AutoNation is pretty much the same as CarMax, in terms of business model. Of course, CarMax with its very ugly report. Now, the losers from this slowdown in the used-vehicle market are some of the names you see on the screen. Now, we're seeing prices come down, alongside of a slowing economy.

But now, all those dynamics, I would argue, are no longer in play at the extent they were. Now, they've also- then they also, when they start to return to the office, they went out there and bought cars. They were doing staycations or just staying home. Now, of course, we saw a big spike in used-car vehicle prices around the pandemic, as everybody needed a car. Some of the higher- so some of the higher-priced offerings here.

YAHOO BUBBLE BREAKER FULL SIZE

Price declines, according to the Manheim index, the steepest in full size and sports car- in sports cars. So prices are really starting to come down here, as I think a lot of would-be buyers are balking at some of the interest rates they're getting on these loans. And a lot of this data comes from Manheim, noting that wholesale used vehicle prices fell 2.3% from August in the first 15 days of September. And we're getting a lot of weakness in the used-car market. I just don't want folks to forget about that, because we're going into earnings season coming up, we're gonna get results from a Carvana and an AutoNation, and that CarMax report, I think, was very disturbing. And the stock was absolutely slaughtered. But you know, of course, it was almost a week ago, we got that CarMax report. Those financing costs are going up.īRIAN SOZZI: Yeah, and in some cases, they're just absolutely shocking. That's where we find Sozzi's Take for today. And that ugly report sheds light on how rising interest rates are beginning to hurt the used-car mac- market. JULIE HYMAN: CarMax reported a big earnings miss earlier last week, as vehicle sales fell short of estimates. Yahoo Finance Live's Brian Sozzi discusses what the state of the used car industry means for auto retailer stocks.