Tom Donnelly

Donnelly explicitly stated that Mazda's Certified Pre-Owned (CPO) business had its "best year ever" and consumers are migrating toward the entry-level $25k price point (Mazda 3) while delaying new purchases. When consumers trade down to used vehicles or delay new purchases due to "anxiety," the average age of the vehicle fleet increases. Older cars require significantly more maintenance and parts than new ones. High CPO volume is a direct leading indicator for aftermarket parts demand. Long auto parts retailers (AZO) as the primary beneficiary of a budget-constrained consumer keeping vehicles longer. A sudden drop in miles driven or a rapid easing of credit conditions stimulating new car sales.