Consumers have been facing affordability issues with used cars, something that used car dealer CarMax noted in its latest quarter earnings this week.
Nash also fielded questions about the trade-in cycles that the used car dealer has seen, noting that some customers were "staying on the sidelines" due to affordability. Others were "going down to a different level of car," according to the CEO.
Affordability issues with used cars have been weighing on consumers already beaten down by inflation and high borrowing costs. "I would say the trade-in cycle is a little longer," he said. "We absolutely see traffic flow coming in at the top of the funnel where there’s interest and again continue to fall off at the conversion point when people actually start to see their monthly payments, and this is especially true in the lower credit customers."
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