Used car stocks plummet due to weak demand and Goldman Sachs lowering autos outlook

From Yahoo Finance: 2025-04-10 13:43:00

The U.S. auto sector is struggling, with CarMax missing earnings expectations causing shares to drop nearly 20%. Goldman Sachs cut its 2025 forecast for U.S. auto sales due to softening demand and tariffs. New car prices could rise $2,000-$4,000. CarMax’s earnings fell short, reflecting cautious consumers and weakening pricing power.

The auto industry faces challenges as high-rate pressure and tariff-driven inflation impact the market. Goldman also reduced its 2026 U.S. auto sales forecast by 1.1 million units. Global production estimates for 2025 and 2026 were trimmed by 3.6 million units. Affordability is becoming a concern in the industry.



Read more at Yahoo Finance: Used car stocks crash as demand flags and Goldman Sachs slashes autos outlook