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April 11 (Reuters) - Pre-owned car retailer CarMax Inc on Tuesday posted a near 57% drop in fourth-quarter profit after sales were dragged down by affordability concerns among buyers already grappling with an uncertain economy.
The demand for used cars was dented over the past year due to higher borrowing costs and soaring commodity and gasoline prices.
Dealers had previously acquired cars at higher rates at the peak of the COVID-19 pandemic, when the supply of new cars was impacted, but now have had to either roll out discounts on models or hold onto stock to boost profits.
Net profit for the fourth quarter came in at $69 million, or 44 cents per share, compared to $159.8 million, or 98 cents per share, a year ago.
For the Richmond, Virginia-based CarMax, quarterly revenue came in at $5.72 billion, down from 25.6% from a year earlier. (Reporting by Nathan Gomes in Bengaluru; Editing by Pooja Desai)
