Off Lease Only (OLO), a major used car dealership that operated multiple locations in Florida and recently Texas, has made an internal announcement that it has “initiated the orderly wind-down of its business,” according to CarDealershipGuy on X.
The decision to shut the company down, per the internal memo, was brought about by “elevated pricing and rising interest rates [that] further deteriorated conditions in the automotive retail market, weakening consumer demand and affordability.”
CarDealershipGuy was also able to get information from a person familiar with the matter that the business “gambled on inventory and lost too many times.” According to the screenshot of a text message shared, the dealership has 86% of its inventory “buried.”
The closure comes at a time when US auto loan delinquency is through the roof, and it’s become harder and harder for Americans to apply for an auto loan.
OLO, which has five locations, is not the first dealership to finally throw in the towel this year. In February, American Car Center, a used car retailer that targets subprime borrowers, abruptly ceased all operations. In April, US Auto Loans, which at the time had 39 dealerships across the country, also abruptly (but only temporarily) shuttered its doors.
Information for this story was found via CarDealershipGuy on X, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.