Used car retailers move up after Edmunds says new car prices squeezing buyers

Shares of used vehicle retailers are moving higher on Wednesday after automotive information firm Edmunds said used vehicle sales in 2019 are poised to hit the highest level since the recession. RISING NEW CAR PRICES HURT NEW MARKET SALES: Edmunds experts say rising vehicle prices and high-interest rates are pushing buyers out of the new market, and a record number of lease returns this year will give shoppers more options than ever in the used market."Typically sales of new and used vehicles follow the same pattern - if sales of new vehicles rise or fall, so do sales of used vehicles and vice versa," said Ivan Drury, Edmunds' senior manager of industry analysis. "But now we're seeing new vehicle sales fall while used rise, indicating the market has reached a flash point. New cars are getting so expensive that they're out of reach for many car shoppers, but there are so many more affordable used vehicles coming off lease that the market is naturally shifting in that direction," Drury is quoted as having stated. PRICE ACTION: Shares of most used vehicle retailers are trading higher on Wednesday afternoon including CarMax (KMX), AutoNation (AN), Group 1 Automotive (GPI), Lithia Motors (LAD), AutoNation (AN) and Carvana (CVNA).