There were a few interviews that were under-represented during the whole buy freeze in January. This was one of them.

https://www.youtube.com/watch?v=ws7w-pioWS0

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https://preview.redd.it/to9xmc5ur1q91.png?width=1920&format=png&auto=webp&s=bc4ae7258bd3ef4f088db0ccfa1d4a271568fae9

Wholesale vehicles prices are plummeting

I’m a wholesaler in the Dallas market, and auction prices have been falling off a cliff in the last couple month.

https://publish.manheim.com/en/services/consulting/used-vehicle-value-index.html

A 2016 Fusion with 110k miles would be bringing $12000 earlier in the year, is now bringing about $9000.

It’s not just prices falling, but sales percentages are falling at the auction as well as dealers have a tendency to not want to take heavy losses all in one month. Repo inventory is starting to rise as well.

As for actual positions, there’s really no good short target because the largest auction houses are Manheim (Cox owned), Adesa (CVNA owned), and Americas (privately held).

However, the banks holding subprime paper are going to take a beating when they write down inventory.

CACC, ALLY, SAN and CVNA all have room to fall. NFA though, I’m an idiot that somehow lost money on CVNA puts so don’t listen to anything I just said.