CarMax in 2021 launched nationally an online tool that provides instant offers to car owners for their vehicles.
Photo: Mark Felix/Bloomberg NewsDuring the pandemic, auto dealers rushed to buy used cars off the street as vehicle production declined amid supply-chain shortages.
They also have bolstered dealers’ profit margins while allowing some to cut prices, as the vehicles they purchase directly from consumers are often cheaper.
Inventory pressures have eased in recent months, but dealers continue to focus on street purchases because they are more lucrative than buying cars at wholesale auctions, where dealers bid up prices and pay fees and transportation costs.
A street purchase is different from a trade-in, where dealers purchase a car at the same time they sell a new one.
Persons:
Mark Felix
Organizations:
Bloomberg
Locations:
Houston, CarMax