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4 Auto Parts Stocks to Buy as New Car Sales Dwindle By StockNews


© Reuters. 4 Auto Parts Stocks to Buy as New Car Sales Dwindle

As the new car market remains under pressure, the auto parts industry is benefiting handsomely from the growing demand for used cars. And because the aftermarket auto parts industry is expected to continue growing amid dwindling new car sales, we think O’Reilly Automotive (NASDAQ:), LKQ Corporation (NASDAQ:), Autoliv (NYSE:), and Dana (DAN) could be ideal bets now. Read on.The sales of new cars have declined as a function of a global semiconductor chip shortage that has hamstrung automobile production. However, the demand for used cars has increased significantly since last year, as people have taken steps to avoid public transportation due to fear of catching COVID-19 . This has caused used car prices to spike. According to the Manheim Used Vehicle Value Index, used car prices are up 18.8% from this time last year.

This bodes well

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7 Auto Stocks to Buy as Price Relief Might Not Arrive Soon

It’s perhaps the most hated bull market in America that seemingly defies all expectations (and desires to be honest). Following the severe disruption of the novel coronavirus pandemic, several markets went haywire to the upside, including most conspicuously the used-car sector. But with media reports stating that wholesale prices for secondhand vehicles have been moving lower from their highs, this boded poorly for auto stocks.

Until, that is, the situation started boding positively again for auto stocks. What gives? Another false-positive? In this particular case, seemingly contrasting events are actually both true. As CNN pointed out, lower wholesale prices may not translate to lower consumer costs because dealerships these days rely less on wholesale and more on directly acquiring inventory from private sellers.

More critically, the semiconductor crisis that has resulted in an ongoing computer chip shortage that frustratingly ebbs and flows has contributed to production shortages. In a

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Car part shortage makes it more difficult to buy off the lot

Charlie Walters, general manager of the Findlay Chrysler Jeep Dodge Ram dealership, said the shortage stems from a series of global challenges.

POST FALLS, Idaho — If you’re looking to purchase and drive a car straight off the dealership lot today, good luck.

A shortage of available parts has slowed manufacturing down by months as reported by our news partner, Coeur d’Alene Press.

During a Post Falls Chamber of Commerce event Wednesday, Charlie Walters, general manager of the Findlay Chrysler Jeep Dodge Ram dealership, said the shortage stems from a series of global challenges that began with COVID-19.

“Back when COVID first hit, all of a sudden, we saw a drop in demand, and no one knew what to expect,” Walters said.

At the time, inventory was high, he said, cars sitting on lots ready for purchase. Once those cars are purchased, they are dealership-owned and financed through what

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Hudson Automotive, TKO Group buy car dealerships in Southern states

Three dealership groups, including the growing Hudson Automotive Group, have purchased stores in Alabama and Louisiana in deals that closed in the second quarter.

Here’s a quick look at the transactions involving domestic and import brand stores.

 

Hudson Automotive, of Charleston, S.C., acquired its first dealership in Alabama on Monday when it bought Hoover Toyota, located south of Birmingham. The group bought the dealership from Gordie Stewart, who had owned it for 22 years, the Hoover Sun reported.

“It’s a great brand, and Birmingham is a great market,” David Hudson, CEO of Hudson Automotive, told Automotive News. “We like Toyota a lot.”

This is the group’s 33rd rooftop, Hudson said, including a used-vehicle store. Hudson Automotive also has dealerships in Tennessee, Kentucky, South Carolina, North Carolina, Louisiana, Georgia and Ohio. Hoover Toyota was the group’s first transaction since November, when it acquired Beaman Automotive Group, made up

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