Post #2430 by Jimkredux on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

Unthreaded | Threaded | Whole Thread (13)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 10

Having been in the industry, I can tell you that rapidly falling prices will hurt all owners of used car inventory,some worse than others. It is a function of how quickly that inventory can be turned over. The fastest turnover I ever experienced was at an under $3000 lot. We turned inventory three times per month, and we're not deeply affected by wholesale price changes because of that. At the average new car store the average turnover is more on the order of 60 days, and they are more affected. At ninety days most used inventory was wholesaled or sold near cost retail. Many sins can be hidden in old inventory if the owners are not vigilant.

Jk

P.S. These observations are 6 years dated, but the principle remains.

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (13)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.