Posts Tagged ‘Car-Mart’

Car-mart: trade that goat for a used car?

December 21, 2008

Yep, according to a news report about the company’s opening a new dealership, the Chairman of Car-Mart said they would accept a farm animal as a trade-in for a car.  The article also re-iterates the “buy-here/pay-here” dealership model.  Each dealership is responsible for its deals which makes sense in a poor economy and they need to act quickly to local economic conditions. 

As I said in my previous post about Car-Mart, what is promising is that the company has a structure that allows it be flexible and adapt to economic changes.  Kudos Car-Mart!

Car-Mart profits in downturn

December 16, 2008

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.