usedcar

AutoZone Stock Up; Earnings Beat Amid Huge Used-Car Demand

Shares of AutoZone  (AZO) – Get AutoZone, Inc. Report jumped Tuesday after the car-parts retailer reported a fiscal-first quarter profit-and-sales beat. 

For the quarter ended Nov. 20 the Memphis company reported earnings of $25.69 per share on revenue of $3.67 billion. 

Analysts surveyed by FactSet were expecting earnings of $21.01 per share on revenue of $3.37 billion. 

“Our retail and commercial sales performance were consistently strong all quarter,” Chief Executive Bill Rhodes said in a statement. 

“Our commercial business growth continues to be exceptionally strong at 29.4% as the investments we are making are positioning us well in the marketplace,” 

“We are optimistic about our growth prospects for the balance of the fiscal year.”

Shares of AutoZone at last check moved up 1.6% to $1,910. 

Used-car demand has surged during the pandemic, particularly because supplies of new cars have dried up due to the worldwide semiconductor shortage. 

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Here’s a buying opportunity for smart used-car shoppers

Americans bought more than 225,000 Certified Pre-Owned (CPO) cars in September. That’s a 2% increase from August and a 1% increase compared to September of last year.

Selling too fast for certification

But the slight increase masks a startling phenomenon. CPO sales could have been much higher, except that dealers may be selling used cars too fast to pass them through the certification process. That creates a unique buying opportunity for smart shoppers (more on that in a moment).

Kevin Chartier, vice president at Manheim Consulting, explains, “In today’s market, everything is selling so quickly and at such high prices, that I think that in many cases the dealers are selling cars before they get a chance to pull them into their shops to spend the time to recondition them up to full CPO standards.”

(Manheim Consulting and Kelley Blue Book share the same parent company, Cox Automotive.)

Also see:

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Used-car prices are finally starting to fall from their pandemic peaks, but deals are still far away

A car dealership lot with Ram pickup trucks.

Used-car prices will only truly get back to normal once new-car prices come down. David Zalubowski/AP

  • Used-car prices have shot through the roof in the past year.

  • The market may have finally peaked and prices are slowly returning to normal.

  • But it could still be more than a year before you can truly get a deal on a secondhand vehicle.

  • See more stories on Insider’s business page.

In today’s topsy-turvy car market, people are shelling out thousands more for used cars than they did just a year ago, with prices jumping more than 10% in June alone.

And although prices appear to have peaked, it’ll be a long while before you’ll be able to pick up a secondhand set of wheels on the cheap, experts say.

Prices are finally dropping

After surging for months, wholesale used-vehicle prices went down between May and June, according to data from Manheim

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How a perfect storm of shortages and rental car chaos sent used-car prices skyrocketing

Cars sit outside a used car dealership with spray paint on the windows advertising the vehicles.

Used car and truck dealers have bought models for more than their original sticker price. Jim Watson / AFP via Getty Images

  • Used-car prices have skyrocketed over the last year.

  • A supply crunch in new cars is spurring demand for used models.

  • Prices may not return to normal for at least a year, one expert told Insider.

  • See more stories on Insider’s business page.

If you’re looking to get a sweet deal on a used car to take advantage of the warm summer weather, it’s not going to happen.

The market for secondhand cars is absurdly and unprecedentedly hot right now. Used vehicles went for a whopping 40% more in June than they did before the pandemic in February of 2020, according to data from JPMorgan.

The average nine-year-old car changed hands for $13,250 in June, according to automotive research site Edmunds. That’s a 30% hike over the same

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