Hat tip to James Lamont.
According to Automotive News, the latest overclass constituency to confirm that its conventional flows of surplus wealth have been brought back online is the nation’s largest used-car sales overlord, CarMax:
CarMax Inc., the nation’s largest used-vehicle dealer group, said today it posted solid revenue and profit growth in its most recent quarter amid continued strong demand for used cars. Net income grew to $107.9 million for the quarter ended Aug. 31, up 5 percent from the same quarter last year. Revenue jumped 13 percent to $2.34 billion.
CarMax shares jumped nearly 7 percent in morning trading, to $25.75, near its 52-week high of $26.50.
And, of course, a government bailout program provided the catalyst:
Even though the cash-for-clunkers program didn’t apply to used vehicles, Carmax said it increased traffic at its stores.
The average selling price for used vehicles was $18,084 for the quarter, up 5 percent from $17,185 during the same quarter last year.
Its finance arm, CarMax Auto Finance, reported income of $52.6 million compared with a $72.1 million profit in the same period last year. The year-ago period’s income was boosted by $36.2 million in one-time items.
Never let it be said that this country doesn’t take care of its used car corporations!
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