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!