The US auto market is a strange place right now.  One example is the recent 2nd quarter numbers posted by AutoZone, who exceeded expectations and posted impressive numbers.  This is of course based on the need for parts driven by people holding onto older cars longer.  Another interesting thing happening in the car market is the rise of America’s Car-Mart, according to Reuters UK:

“Auto retailer and financer America’s Car-Mart Inc (CRMT.O) posted a 6 percent rise in third-quarter profit, boosted by higher selling prices and interest income, and a strong business model that continues to resist the economic downturn.

Shares of the Bentonville, Arkansas-based company rose 18 percent to $11.60, before paring gains to trade up 22 cents at $10.08 Tuesday afternoon on Nasdaq.”

America’s Car-Mart makes loans to people with questionable credit history.  The company has been running a deferred payment plan where customers make payments around the same time they get their tax returns.  This all sounds mighty sketchy and more then just a little bit troubling to me.  If you have to wait to get your tax refund before making a car payment, maybe it would be a good idea to wait on that new car.  Since so much of our economic troubles have come from people buying things they couldn’t afford on credit, all I can say is that I hope that America’s Car-Mart doesn’t turn out to be another big money loser for the American people.

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