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To buy a car Maybe both exciting and stressful. If you know the brand and the model you want, head for the dealer is not too complicated, but if you plan tests for different options, this can be overwhelming, to say the least. There is also the choice between new or used vehicles, financing or rental, and other small but important decisions concerning characteristics and upgrades.

Fortunately, most of the dealer's sales partners are well equipped to answer your questions and help you make the right choice. But your concession options can become more limited, because a popular dealer has just announced that he would close half of his locations by July 8. Read the rest to discover what locations close the United States to the United States.

Read this then:This popular reduction chain is closing, from June 27.

Like so many other sectors of the economy, the automotive industry has been shaken by the Pandemic COVID-19. According to Kelley Blue Book, the market is currentlycharacterized by high prices, low inventory, and few incentives, which are still aggravated by the problems of tedious supply chain which we continue to hear. In particular, a shortage of micropile in progress prevented manufacturers from being able to produce enough new cars to meet demand, and new COVVI-19 locking in Asia and the war in Ukraine delayed other car parts.

In light of this, many car buyers have chosen to buy used vehicles. But thanks to the right supply and demand, second -hand vehicles have now skyrocketed. And an automotive dealer at the national level was directly affected by this change, now choosing to close half of its locations.

If you are on the market for a used car, you may have to look elsewhere than Carlotz. According to a press release from the used car and the consignment concessionaire,11 locations will be closed in the United States, which represents almost half of the total of Carlotz's locations.

Dealership stores, also called "hubs", started to close on June 21, and closing activity will be completed on July 8, said Carlotz in the press release. The closures will also lead to a reduction of 25 to 30% of the company's workforce.

"Although decisions that have an impact on our teammates are not taken lightly and are not easy, we believe that hub closings are a necessary step to help improve the financial performance of the company", "Lev PekerSaid Carlotz CEO in a statement. "We greatly appreciate that all our teammates have done for Carlotz and we are committed to helping them support this transition."

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Having to close locations is never a good sign, but Carlotz also chose not to open new locations he had on the file, which made it possible not to have dealers with newly executed leases.AE0FCC31AE342FD3A1346EBB1F342FCB

The existing hubs that close include those of Lilburn, in Georgia; Bakersfield, California; Clearwater, Florida; Highland Park, Illinois; Merritt Island, Florida; Mobile, Alabama; Madison, Tennessee; Plano, Texas; San Antonio, Texas; Lynwood, Washington; and O'Fallon, Illinois.

The four locations of Carlotz in Virginia, where the company is based,will not be affected, as indicated by theBusiness journals.

The main reason for massive closures is due to the nature of the automotive resale market, the company said. With so much request for used cars, Carlotz highlighted the challenges associated with the acquisition of the inventory.

"In the past twelve months, our supply has been challenged. The growth of our mixture of vehicles from consumers is a priority to complete our retail remarketing supply channel and reduce our auction," said Peker in a statement. "We believe that closings should allow us to improve supply through a smaller centers base and focus on the productivity and efficiency of remaining centers."

Carlotz became public in 2021, as indicated by theBusiness newspapers. At that time, the market capitalization of the company was around 1.2 billion dollars, but things have taken a drastic turn since then. In 2021, the company declared nearly $ 40 million in losses and, in the first quarter of 2022, losses totaled $ 24 million.

The company provides that the closing of the locations will allow us to focus more clearly on "profitable future growth", said the press release, and Carlotz estimates that the closings will reduce operational losses from $ 12 to 13 million. "We also think that this is the first step to build a stronger carlotz, improve the preservation of cash and create a path to profitability," added Peker.

Read this then: This emblematic channel closes the stores, from tomorrow .