CarMax makes so much money on used car prices

A CarMax license plate is displayed on a used car for sale at a CarMax hypermarket on September 24, 2020 in Colma, California.  CarMax announced a 28% increase in second quarter profits, better than expected, with revenue of $ 5.37 billion.

With Used car prices are getting absolutely out of control right now, used car mega-retailer CarMax is absolutely making the money. All this and more in The morning shift by September 30, 2021.

1st gear: sales up 20%, net revenues up 49%

I try to imagine myself as a CarMax executive. I am fed on grapes while lying on a ispnting sofa wearing a toga. I am fanned with palm leaves.

Of Automotive News:

CarMax achieved record net sales in its fiscal second quarter thanks to a double-digit increase in unit sales, while net profit fell.

The largest used vehicle retailer in the United States highlighted its omnichannel retail efforts, and in particular its instant cash offers tool, as having driven its leading success during the period, ended on August 31.

Net income climbed 49% to $ 8 billion in the quarter. Total unit sales increased 20% to 419,895, and included used unit retail sales of 231,797, up 6.7%, and record wholesale sales of 188,098, up by 41%. Retail sales of used units on a comparable store basis increased 6.2%.

AutoNews adds that CarMax purchased 364,263 vehicles in the second quarter. Were you one of the salespeople? How was it?

2nd gear: Michigan Mad It Doesn’t Run Ford

The state of Michigan is unhappy that Ford chose to build its giant battery plant in (non-union) Kentucky, rather than Michigan, because Crain’s reports:

Michigan Governor Gretchen Whitmer said her state had not had a “real opportunity” to introduce Ford Motor Co. on land, labor and tax incentives for electric vehicle assembly plants and multi-billion dollar batteries that the automaker plans to build in Tennessee and Kentucky. .

The Democratic governor on Wednesday rejected suggestions that Michigan could not compete for Ford and battery maker SK Innovation’s $ 11.4 billion plan to invest in the massive projects.

“As a primary home, Michigan will always be able to offer a competitive alternative when we get the chance,” said Whitmer. “And we look forward to future investments and (Ford) looks to Michigan first and gives us the opportunity to really put a solid package on the table.”

Whitmer said there were “probably a lot of factors” that went into Ford’s decision to locate the new battery factories in Tennessee and Kentucky.

I can imagine at least one of these factors. (That the UAW has yet to unionize this future factory.)

Either way, if Michigan is really upset, it should do whatever the state version of nationalization is. Send state soldiers to HQ. If it’s supposed to work for the good of the people of Michigan, let the people of Michigan take control.

3rd gear: Ford recalls one-third of a million crossovers over wobbly rear-view cameras and poor suspension

Speaking of Ford, 354,330 crossovers are due for a date with service, like Automotive News reports. First, the backup camera reminder:

A global recall involves 228,297 Explorer, Lincoln Corsair and Lincoln Aviator crossovers from the 2020-21 model years equipped with 360-degree cameras. Ford said the video output from these cameras could fail, which could cause the rear view image to cut off and thus increase the risk of a reversing crash or crash.

Dealers were notified Thursday. The company said it expects vehicle owners to be notified by mail between October 7 and October 14. Ford said dealers will update the vehicle’s image processing module software.

And second, the suspension reminder:

A recall in the United States affects 126,033 Explorers from the 2011-13 model years. Ford said the vehicles could be fitted with a cross-axle ball joint replacement part that could seize up. The automaker said this could lead to a fracture of the outer section of the vehicle’s rear suspension link.

[…]

Ford said dealers would inspect vehicles for the presence of a cross-axle ball joint. If any of these models are found, the dealer will inspect for leaks and, if necessary, replace that part, the joint or toe link.

4th gear: Honda: if we can no longer make gasoline engines, what about rockets?

Normally I would say these are just media postures in the age of Elon and SpaceX, but Honda has made passenger jets before. Nothing is really out of the question. Of Edge:

Honda is increasing its research and development spending in three futuristic areas: rockets, robots, and electric vertical take-off and landing (eVTOL) airplanes, also known as flying cars.

The automaker will spend $ 45 billion (5,000 billion yen) on R&D over the next six years. But Honda won’t say what fraction of that amount will be spent on rocket, robot, and flying car development, or even whether it plans to pursue those projects as commercial ventures.

In fact, Honda sees eVTOL robots, rockets and airplanes as an extension of its core auto manufacturing business. If the company can get a better electric vehicle platform out of it, for example, the investment will be worth it. Basically he wants to see if he can make working prototypes before he takes the next step.

$ 45 billion is not exactly change!

5th gear: here is a Story about how cities and police combine to ticket black people who ride bikes

Streetsblog has a good article on how Chicago’s black neighborhoods see a lot more people getting paid to ride on the sidewalk compared to white neighborhoods, which have much better bike lanes.

From Streetsblog, which opens by describing the fast pothole-filled streets of Chicago’s south side, where many choose to risk rolling on the sidewalk:

Jason Hardt, who was fatally hit by a hit-and-run driver while cycling on Independence Boulevard in North Lawndale, is a tragic and recent illustration of why cyclists might choose to risk a quote for riding on the sidewalk rather than pedaling down a dangerous street.

On my own drive, heading north on California Avenue in Little Village, the four-block stretch between 35th and 31st Streets narrows as it passes under the Stevenson Freeway and onto the south branch of the Chicago River. It’s so dangerous that I break the law by taking the sidewalk every time I walk this section.

So it’s no surprise that, according to a study by Professor Jesus Barajas of the University of California at Davis, sidewalk tickets were issued eight times more often per capita in predominantly black communities in Chicago than in predominantly white neighborhoods, which tend to have more than kilometers of marked and protected cycle paths on the arteries.

The city is responsible for both the police and the cycling infrastructure, so what is really going on here?

Reverse: The curse begins

Neutral: When was the last time you sold a car?

I’m a little curious what even depreciation looks like right now.

About Frances R. Smith

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