Net income for AutoNation from their operation went up by 11% to a total of $97.4 million during their second quarter, mostly led by their used car marketplace, according to the company.
AutoNation CEO Mike Jackson credited the record number of “nearly new” off-lease vehicles returning to the market with underpinning used-vehicle sales at AutoNation and other dealership groups.
“You have 4 million nearly new vehicles coming off lease, a big percentage of which are eligible for extended warranties from the manufacturers through a certified pre-owned program,” Jackson said during AutoNation’s Aug. 1 earnings call with analysts.
“The consumer is coming in, and they have brand new to choose from, nearly new to choose from and pre-owned. This nearly new category is dominated by the franchise dealers. Therefore, we get the first look at this opportunity, and we’re ready for it and have seized it as forecasted several years ago.”
AutoNation USA, the company’s standalone used-vehicle store business, is performing “as expected,” and its “trend line toward profitability is positive,” but the company will wait another quarter before giving a detailed update about its performance, Jackson said.
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