What are your thoughts about potential CarMax Layoffs 2020? Any news or rumors?
1 reply
You are absolutely correct. 60%to 70% of loans acquired at Carmax are subprime, but ultimately they will start to default shortly. Subprime lending will tighten the belt, and so will Carmax Auto Finance. With the aging inventory and extremely low demand, the company will face the challenge of slashing prices to get rid of old inventory. Profits will plummet with no room to cut cost (as this has already taken place) which will ultimately reflect on KMX stock. Brace your self for the ride, it’s coming.