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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (34433)	5/10/2009 12:37:55 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78740

With used-cars at dealers you get off-lease cars, the cpo (certified pre-owned)cars, and a source of financing. Lots of cars have very sophisticated electronics and sensors and stuff which means it can be very expensive for the independent shops to have the necessary diagnostic tools and skills to find and fix problems. It may be so that the service business will decline over time. It might or might not be because independent shops will be taking an ever larger bite from the dealers. It might be because cars are getting more and more reliable and so have fewer problems. Of course, the offset is that the longer people keep their cars on the road, the more likely repair issues occur. Consider new car dealerships. Imo, up until last year anyway, if you went into any community and tried to determine who the wealthiest people were, you would find the owners of car dealerships to be right up there, if not at the top. A lucrative business it has been (in the past anyway).