Auto dealerships: "Auto Dealerships - who the hell would want to buy auto dealerships?" Up until the past eight months, they have been very profitable for their owners. Most profits come from service, major repairs (e.g. if they have collision shops), and esp. used-car sales. I believe many people wrongly presume it's new car sales where they make their profits. If people are keeping their cars longer to reduce their household debt, then used-car sales will not grow, and that could hurt the dealerships
I'm out of the dealerships now, still following them on a watch list though - Penske, ABG, LAD, etc. Right now, I'm going with the loan companies, i.e. ACF. Less demand for loans if people pay them down. Otoh, maybe the default rate on loans will stabilize or improve with improving economy. |
