CarMax (KMX), the nation’s largest used-car retailer, reported a decline in selling prices during its fiscal first quarter, but the company easily beat Wall Street’s earnings forecast amid robust sales.
Used-car prices are expected to decline this year, as vehicles leased during the U.S. auto sales boom in recent years begin to hit the market. Manufacturers and dealers are closely watching price trends because cheaper used cars could soften demand for new vehicles Opens a New Window. .
CarMax CEO Bill Nash said Wednesday the Richmond, Virginia-based dealership chain has already seen an influx of off-lease vehicles, which is driving prices lower.
“As more of them come in, prices will continue to drop,” Nash told analysts during a conference call.