I do not know..
I remembered. It was this.....
http://<a href="https://www.youtube....Jv_DfMZ7jU</a>
SNOOPY
new car sales have fallen of a cliff recently , A leading economic indicator along with many other depressing indicators reflecting tough times.
Will be interesting to see how turners are navigating these tough times
This is their outlook:
There is no doubt that trading conditions got harder in the final quarter of the FY24 year. Looking ahead, we anticipate a further deterioration in economic conditions during the first half of our financial year (HY25) but expect to see the economy start to recover in the second half. Our near-term focus remains on exceeding the $50M NPBT goal in FY25, despite the economic backdrop, however there remains some obvious risks with the level of interest rates impacting the overall economy and consumer demand
You will find that cars over $20,000 will struggle to sell and cars under that keep selling as normal. I feel this has been discussed multiple times that even in a recession the Turners total business model does ok. Sure the finance side may increase with the number of people behind in payments, but overall the company still does well. I am a happy holder for years now and have no intention of selling any shares and will accumulate if people panic
I agree Turners are concentrating on the "sweet spot" in the market ie under $15,000.
There is a lot of excellent parts to Turners to like.
Car Sales,including auctions.
Car Insurance
Car mechanical insurance.
Car finance.
End of life car disposals.
Property dealing,including grabbing development margins on new sites.
Debt collection business.
Car sales slow down in winter.
It is OK to be down on a poor month,but the real profits come from being up on the good months.
Some details on Turners stock - shared because I can.
Turners is fine, they do not sell new cars. 2nd hand sales are down in June, but at this time of year sales are variable Quarterly data shows the year is pretty good. Turners say they have almost 10% of this; https://datawrapper.dwcdn.net/vGSi4/2/
I suspect they are responding to demand. Their total stock is about 4% of national inventory, but as they state, they sell about 9-10%, ie they take on average about 2 weeks to sell a car.
Other factors; Our govt appears to be talking the economy down - I guess so they can take the credit for improvements/ My truckometer is now fully focussed on Auckland motorway because Waka Kotahi don't take publishing stats seriously, The truckometer (Daily number of trucks passing Drury on the southern motorway) suggests the market is still rumbling along ( i use this to understand Mainfreight - MFT ) https://datawrapper.dwcdn.net/Dugrc/20/
Share of inventory by price range. Second hand cars are still selling well while Turners temporarily focussed on cheaper cars but have reversed that a little recently; https://datawrapper.dwcdn.net/dp3a0/2/
2nd hand Traders share of market, notice the change from prior to 2021 to post 2022. A change worth discussing; https://datawrapper.dwcdn.net/RuTDR/5/
Turners inventory, this year is a bit lower than other years, but management have been testing theories of using Trademe or not. BTW, 2CC have almost ceased using Trademe, I doubt that works for them, their sales staff immediately swamped their 2CC site listings with sold cars, no doubt to massage their egos. https://datawrapper.dwcdn.net/3FAuw/4/