Thoughts? Any CarMax Layoffs in 2019?
1 reply
Considering the current situation, layoffs are inevitable given the aging inventory and high operational cost for each location. With consumers putting high price tag purchases on hold due to uncertainty, store traffic has slowed down significantly, impacting sales. In addition, inquiring inventory through appraisal purchases will not be a priority with thousands of vehicles sitting on the lot. Lastly, public fears the long lasting impact and ultimately we will start seeing payment defaults taking place, which is an indication CAF will struggle in a short and long run. CAF prime loans have been the bread and bitter for KMX along with wholesale profits, but this could be the turning point of seeing that profit evaporate rather quickly. Wholesale could linger for a while as it attracts third party small entities, who eventually will give in to the economic slow down. So, to paint the picture, KMX is in trouble as this crisis is not 9/11 and definitely not going to be short as the 2008/2009 recession period. Advise? Get rid of KMX and stop the bleeding.