Originally Posted by
Balance
Not a stock I follow - happy to leave the Baker boys to this one - after escaping with nice gains in Trilogy which would now be a disaster!
However, thought I would ask around after noting the burst of comments on the ever declining share price.
May or may not be useful information - a car dealer told me this morning that the used car industry is under huge margin pressures.
Far too many players (NZ has the most relaxed used car import regime in the world bar none) in the industry and new car prices have also been dropping in response to the competitive conditions.
TRA is exposed to this market in more ways than one obviously but Right Cars division is mentioned by this car dealer as one with severe aged inventory needing to be marked down.
He said Right Cars had bought a lot of very high mileage stock which allowed the previous owners to make huge profits. Turners is still grappling with the problem.
Read into it what you will.