Jim Cramer of CNBC on Thursday said the headwinds facing the used car market made it uninvestable, while its poor performance is also an indicator that inflation may be cold. rice field.

“When everyone was crazy about the 8.5% consumer price index (which is a hot number), they might have noticed that used car and truck prices were down 3.8% from the previous month,” he said. Said.

“This is bad news for the used car industry, but it could be a great sign for the economy as a whole, as it means that inflation is finally being curbed,” he added.

“Flirt“Host comments come later Carmax report We made more than we expected, but missed the most recent quarterly earnings. JP Morgan Downgrade inventory Due to concerns about how the affordability of the vehicle will affect CarMax’s performance.

“Finally we’re seeing what’s called demand disruption. People don’t want to buy so many used cars if they have to pay so much … After all, used cars Prices cannot continue to rise as follows. This will last forever. “

He added that it’s not the best time to own a stake in a used car, but there’s one option that offers investors who want to try their luck.

“If you insist on owning a used car play, I say go with you Lithia.. …. I think this is also the wrong moment, but if you disagree with me, Lithia is the way to go. “

He also said He has some confidence in the performance of used and new car dealerships, including: AutoNation, Sonic Automotive, Group 1 Automotive When Asbury Automotive..

“They will benefit from the return of the new car supply as the automakers eventually put the supply chain in place. More importantly, these dealers are actually profitable and inventories are fairly reasonable. To be honest, they are so cheap that I was worried that you might need to lower your quote. “

Sign up now CNBC Investing Club to track every move in Jim Cramer’s market.

Disclaimer