TRA - Turners Automotive Group [previously TNR - Turners Limited]

[Balance]

Feedback from an Auckland North Shore car dealer - used vehicle sales have fallen very sharply in the last 3 weeks and dealers are starting to advertise specials to get rid of stock, before new ones arrive.

[Beagle]

Winter is always a quieter time in the vehicle market and in Auckland this month the weather has been absolutely atrocious.
Happy holder and I haven't forgotten that Todd Hunter said most people buying used cars in the Turners cars segment of the market are making needs based purchases.

[sb9]

And for those that may not be aware fully aware of TRA business model, they're not just into Automotive, they've very profitable Finance and Insurance divisions too that contribute handsomely to earnings.

[crighton100]

Just like to add that management encourages its employees into shareholding in the company,which is always a great incentive to work hard & usually gets the right results
[its how the great Bruce Plested who started up mainfreight got his employees into shareholding & see where that company has gone from strength to strength.

[crighton100]

Just like to add that management encourages its employees into shareholding in the company,which is always a great incentive to work hard; usually gets the right results[its how the great Bruce Plested who started up mainfreight got his employees into shareholding & see where that company has gone from strength to strength.

[Rawz]

Just like to add that management encourages its employees into shareholding in the company,which is always a great incentive to work hard; usually gets the right results[its how the great Bruce Plested who started up mainfreight got his employees into shareholding & see where that company has gone from strength to strength.

well said. worth posting twice!

[bull....]

Feedback from an Auckland North Shore car dealer - used vehicle sales have fallen very sharply in the last 3 weeks and dealers are starting to advertise specials to get rid of stock, before new ones arrive.

not surprised as i outlined a few pages back the highs were well in for this stock.
in summary again the main points

chip manufacturers are catching up production and recession is coming so demand will crash from these highs
interest rate hikes make it harder to borrow to buy a car

[Rawz]

not surprised as i outlined a few pages back the highs were well in for this stock.
in summary again the main points

chip manufacturers are catching up production and recession is coming so demand will crash from these highs
interest rate hikes make it harder to borrow to buy a car

Yes there are headwinds but TRA is priced attractively so its an easy hold for the dividend while top quality management execute on their branch expansion.

UDC Finance bought Euroclass financial services this week. A bit of consolidation in the asset finance industry that Oxford is growing in.

[Ggcc]

Interesting times ahead. Bought some more TRA after a brief discussion with someone in the industry, who finds TRA undervalued. Retail sales might be falling 5-10%, but their insurance side of the company will continue to do well and we may see more upside with that side of the company. We will see some stress in the Oxford side with lending as sourcing the money becomes more expensive. All in all the company is better setup than a lot of others in the industry. If certain car sale yards are struggling they may need to sell their inventory at discount just to survive. Also we an increase in TRA market share as other yards pull out entirely.

Quite optimistic I feel

[Jonette]

Nelson branch must be close to opening;

https://turners.careercentre.net.nz/...nt/nelson/2684

at an educated guess, that will add 130 to 140 cars for sale, with say $1500 NPAT per car based on an earlier Todd quote, based on market size it could be of the order of 100 cars / mth or $150,000pm , almost $2m extra profit pa.