Most investors don't know it, but wholesaling used cars is a red-hot business. The effort by the Barack Obama administration to get older, less fuel efficient and higher polluting cars off the street by offering incentives to trade them in triggered a huge response. The unintended consequence of Obama's move was it made used cars harder to come by since the older models couldn't be resold in the U.S. Cleverly Companies like Copart rode this opportunity from its humble roots in California to a global used vehicle seller to all manner of customers in 200 locations in 11 countries. It now has 125,000 vehicles up for auction every day online and its making money. This year Copart as returned 30%-Plus YTD in competition with its 20 or so competitors listed HERE. R. Zurrer for Money Talks
This Used Car Empire is Shifting Into Overdrive
That business is about to get even hotter. No need to spend all day at the car dealer anymore. You can attend online auto auctions and get a treasure that was relegated to the trash heap. And Copart is making a mint in the meantime.. Twenty years ago, the used car business consisted of trade-ins. Buyers traded their old car for a new one. And then the dealer put it at the back of the lot, or wholesaled it at a small local auction. It was an ecosystem ...
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