2 Stocks to Profit From Skyrocketing Used Car Prices

by | Dec 1, 2021 | Stocks

With new vehicle production stutters caused by a variety of factors like the microchip shortage, more and more people are turning to the used car market…

But this swell in demand coupled with low short-term supply of used vehicles has prices skyrocketing so much they cost more than their factory-fresh counterparts. 

I mean, used Toyota Tacomas are going for nearly $40,000, while new ones are $37,000! 

This trend should continue well into 2022. And I’ve found a small group of auto stocks set to benefit from this anomaly as long as supply chain bottlenecks persist.

2 Auto Stocks Set to Benefit From Soaring Used Car Prices 

The first auto stock set to benefit from heightened used car demand is CarMax Inc. (NYSE: KMX).

KMX is a used-car retailer that has a “no haggle” policy for selling and buying pre-owned cars. 

And I’ll tell you now… 

I sold my Jeep to CarMax this year, and they outbid the closest competitor by more than $4,000! 

KMX is up 50-plus percent over the past year, and earnings estimates have been better than expected each of the past four quarters. 

And I expect its price to reach the $170 level over the next three months. 

That’s especially true if supply chain issues, inflationary pressures and COVID-19 all remain major influences on the economy. 

The next auto stock I have for you is a leading automotive aftermarket parts provider. 

It serves both professional installers and do-it-yourself customers. 

And similar to KMX, it’s seen gains of over 50% in the past 12 months…

Check out my short video below to get the next auto stock set to benefit from soaring used car prices on my list. 

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to! 

 

P.S. What if I said there’s a three-piece blueprint to help traders succeed in all three market climates? 

In fact, it’s already helped Chuck Hughes grow one of his accounts 142% on average every month in just 15 months…

And it’s even led a small group of traders to gains of 330%… 274%… and 251%… all in just three months! 

See it in action here.

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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