Drop in Used-Car Prices Burn US Auto Dealers But Is Good Sign for Fed
- New-car prices will remain steady as automakers limit supply
- Inflation and rate hikes sap demand from used-car shoppers
Vehicles sit inside a Carvana Co. car vending machine in Frisco, Texas.
Photographer: Laura Buckman/BloombergThis article is for subscribers only.
Sagging used-car prices are starting to hurt the profits of car dealers and rental car companies -- a good sign for policy makers trying to tame inflation.
Hertz Global Holdings Inc. said Thursday that rising depreciation costs are starting to dent profits at the rental car company. AutoNation Inc., the largest US car retailer, warned of skimpier margins on used-car sales next year as prices come down from their peak. That echoed a warning from CarMax Inc. last month, which missed earnings forecasts after writing down the value of its used-car inventory.