KAR Auction Services (KAR)
Posted: Tue May 05, 2020 11:50 amnot vested
KAR Auction Services as its name implies provides auctions for cars and other vehicles.
During economic boom times, folks are eager to buy and lease new cars.
And in turn – this leaves plenty of used cars that have to be liquidated to keep the flow of cars coming through dealerships around the nation.
And lease companies need to get rid of off-lease cars and turn to auctions.
Now in bust times – there is an absolute glut of used cars and KAR is stepping up its operations.
And in addition, it also has a specialty in damaged or salvage vehicles for parts.
Insurance companies don’t want to keep cars that have been totaled. KAR solves their problem and has eager buyers for parts which now are often more valuable due to parts shortages with factories locked down.
KAR yields 5.07%.
Source: Daily Trade Alert
KAR Auction Services as its name implies provides auctions for cars and other vehicles.
During economic boom times, folks are eager to buy and lease new cars.
And in turn – this leaves plenty of used cars that have to be liquidated to keep the flow of cars coming through dealerships around the nation.
And lease companies need to get rid of off-lease cars and turn to auctions.
Now in bust times – there is an absolute glut of used cars and KAR is stepping up its operations.
And in addition, it also has a specialty in damaged or salvage vehicles for parts.
Insurance companies don’t want to keep cars that have been totaled. KAR solves their problem and has eager buyers for parts which now are often more valuable due to parts shortages with factories locked down.
KAR yields 5.07%.
Source: Daily Trade Alert