7 Best Used Car Stocks To Buy According to Hedge Funds

3. ​Lithia Motors, Inc. (NYSE:LAD)

Number of Hedge Fund Investors: 45

Lithia Motors Inc. (NYSE:LAD) is one of the best used-car stocks to buy, according to hedge funds. On January 9, analysts at Benchmark reiterated a Buy rating on Lithia Motors Inc. (NYSE:LAD) and a $400 price target.

The research firm maintained its bullish stance despite adjusting its forecasts for the company’s performance metrics. It estimates reductions in new-vehicle volumes and gross profit per unit. The research firm also projects $409 million in adjusted EBITDA in the fourth quarter.

The bullish stance comes as Lithia Motors Inc. increasingly expands its footprint in Canada with the acquisition of Fine Ford in the Greater Toronto Area. The acquisition underscores the company’s continued focus on strengthening its network in North America, as it is expected to increase annualized revenue by $100 million.

“This strategic investment in Canada’s number one volume brand strengthens our omnichannel network in the nation’s largest market,” said Bryan DeBoer, Lithia and Driveway President and CEO. “Fines Ford’s customer loyalty and established reputation in the community align perfectly with our strategy to provide exceptional experiences wherever, whenever, and however customers desire.”

​Lithia Motors, Inc. (NYSE:LAD) is one of North America’s largest automotive retailers, providing a full spectrum of transportation solutions, including new/used vehicle sales, financing through Driveway Finance Corporation, and repair services. Operating over 470 locations across the U.S., Canada, and the UK, they utilize an omnichannel approach (including Driveway.com) to facilitate online and in-store purchasing.