Used car prices still have room to decrease ‘significantly,’ says Morgan Stanley

Morgan Stanley analyst Adam Jonas notes that last week CarMax (KMX) reported their "greatest same store volume decline" in a quarter since the global financial crisis, excluding COVID, and although used car prices have come down, he sees room for prices to "decrease significantly from here." The firm keeps an Overweight rating on CarMax shares. Other car dealer stocks include Penske Automotive (PAG), Lithia & Driveway (LAD), Group 1 Automotive (GPI), Asbury Automotive (ABG), AutoNation (AN), Sonic Automotive (SAH) and Carvana (CVNA).