Car-Mart profits in downturn

10-Q Detective looks at the used car market and finds one company succeeding by adapting.  Car-Mart is selling and financing cars to a high-risk sector providing them cars they need, cars that will get them to their jobs.  While other used car dealers like AutoNation and CarMax are suffering because they have too much inventory of luxury and sports cars, Car-Mart has carved out a lower-end niche and its working.  The report goes on to say that there are risks because credit defaults are rising and particularly among Car-Marts primary market but the company has decentralized credit issuance and collection decisions allowing each dealership to work out arrangements with borrowers. 

To me, this goes to the point that even in bad economic times, companies can make money if they can adapt and if they pay attention to what people need.

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One Response to “Car-Mart profits in downturn”

  1. Car-mart: trade that goat for a used car? « Reading Tea Leaves by Randy Wilson Says:

    […] I said in my previous post about Car-Mart, what is promising is that the company has a structure that allows it be flexible […]

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