Advance Auto Parts CEO: Current fear of public transit leading to higher used car sales
Advance Auto Parts CEO and President Tom Greco says the financial hit from the coronavirus has led many to buy used cars instead of new ones and are spending more on DIY auto repair.
Online used-car retailer Carvana Co CVNA.N said bit.ly/32SOqyh on Tuesday it expects record revenue and retail sales in the third quarter due to a strong rebound in demand for vehicles in the United States, following easing of lockdown restrictions.
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Shares of the company, which have nearly doubled in value this year, rose 20% in premarket trading, and were set to open at more than six week high.
“The momentum that we saw in the second quarter accelerated into the third, leading to record performance for Carvana,” Chief Executive Officer Ernie Garcia said.
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Auto sales in North America have continued to recover from the COVID-19 pandemic, since hitting a bottom in April. A rebound in sales has seen major automakers scramble to ramp up production and boost inventories at dealerships.
Carvana also said it plans to offer up to $1 billion in aggregate principal amount of senior notes, due in 2025 and 2028.
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