CarMax: Used car purchases down as interest rates increase
(CNN) - Rising interest rates and high prices are putting used cars out of reach for a growing number of car shoppers.
It’s bad news for CarMax, the largest used car dealer in the U.S.
CarMax reported Thursday its earnings plunged more than 50%, as the number of cars it sold in the quarter fell 6.4% compared to the same quarter a year ago.
The company blamed high car prices fueled by inflation, climbing interest rates, and low consumer confidence.
Car prices have been climbing steadily for the past two years, as a shortage of parts, particularly computer chips, has limited supply amid strong consumer demand.
Used car prices are also up nearly 50% from August 2019.
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