CarMax: Used car purchases down as interest rates increase

(CNN) - Rising interest rates and high prices are putting used cars out of reach for a growing number of car shoppers.

It’s bad news for CarMax, the largest used car dealer in the U.S.

CarMax reported Thursday its earnings plunged more than 50%, as the number of cars it sold in the quarter fell 6.4% compared to the same quarter a year ago.

The company blamed high car prices fueled by inflation, climbing interest rates, and low consumer confidence.

Car prices have been climbing steadily for the past two years, as a shortage of parts, particularly computer chips, has limited supply amid strong consumer demand.

Used car prices are also up nearly 50% from August 2019.