The subprime auto market continues to churn out strong results for the largest U.S. dealership chain focused exclusively on “buy here/pay here” auto sales.
America’s Car-Mart, which operates 116 used-car dealerships in the South and Midwest, reported first-quarter earnings of 83 cents per share on $110 million in revenue. The results were slightly below Street estimates.
America’s Car-Mart last quarter saw 6.4 percent growth, below the pace of its earnings growth of 11 percent from last year.
Shares of CRMT were up 6 percent ahead of the earnings report.
America’s Car-Mart operates used car dealerships in smaller cities like Cape Girardeau, Missouri. Selling to buyers with poor credit records who need a car and providing cars “as is” to customers is only part of how the company makes money. It’s the finance side of the business that is just as important.