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A Day Of Reckoning For CarMax

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CarMax results (NYSE: KMX) reveal the used car industry is not immune to global issues plaguing the market today. Not only are rising costs digging into the bottom line but there is the omnipresent issue of the global semiconductor shortage. The semiconductor shortage has caused a severe cut back in the production of new vehicles and it takes new car production to create those used cars CarMax is so fond of selling. There are fewer new vehicles on the lot now than in decades and that issue is not going to end soon. Less new cars mean fewer used cars and used car demand is so high the dealers are already having to solicit inventory. As it stands, CarMax is still able to buy more cars on a quarterly basis than it sells but those conditions could change very quickly.

CarMax had a truly astounding quarter in which........

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