I'm glad they've actually exited the financing business because things are about to get tough on that front, better to just clip the ticket on each deal they get.
"Vehicle loan arrears were also up 39 percent in April over the year earlier"
https://www.rnz.co.nz/news/business/...financial-pain
Yeah thats true there's been a massive consolidation on secondhand car dealers. The smaller ones can no longer compete with the larger ones that have a cost advantage.
They should be fine in this environment with their price range, most people can afford their cars. The bonus is their cars are New Zealand new as well, which given the current risk of buying a flood damaged car on the market these days, they are a pretty safe bet since its fresh from Japan.
The value its trading at is pretty fair for the risk you take, if they can beat their last financial year performance then you're already getting a good return, never mind their current guidance of $3.8m - $4.2 m. They would have to perform exceeding worse than the last financial year to see a downside.