Some belated thoughts on Q1 this year:

* Gross profit per vehicle was the highest ever.
* Third highest unit retails for Q1 in history.
* Wholesale volumes were down but gross per unit remained flat YoY.
* Other gross profit per unit was highest ever.
* Share repurchases nearly double YoY. Could retire in excess of 6% of total shares this year which is inline with their previous aggressive share repurchases in 2015 to 2019.
* Quarterly EPS up 42% YoY.

I don't know how much of the increases for Q1 may have been driven by the noise around tariffs but we have now seen four straight quarters of YoY retail unit sales increases which is positive. They certainly still face headwinds with past due loans as a % of total up about 0.6% to 5.48%. Provisions for loan losses were up about 58% but the majority of that is likely their move to bring more of the sub prime lending business back into CAF. I don't find that too concerning as the increase in past dues is inline with what i see on the consumer side of my employer's consumer lending book of business. The american consumer is getting stretched thin which should be good in some manner for used car sales.

I took assignment of a few shares back in June and I continue to sell puts. I'm still content making 20%+ cagr on put premiums and/or owning shares at attractive prices while building my position.


Jeff