AutoNation saw more used vehicle sales and higher used vehicle profits during its most recent quarter, on a same-store basis, according to AutoNation’s first quarter earnings call.
Through the three-month period ending in March, the company saw a used vehicle gross profit of $82 million, which was 9% more than a year ago. In terms of retail sales, AutoNation sold 60,300 used vehicles, which represented a 3% boost year-over-year.
The company credited the continuing success of its “One Price” strategy — how it refers to its no haggle approach to selling used vehicles — to the success of its used business.
During the same three-month period, the company opened a fifth AutoNation USA store in the Las Vegas market. AutoNation USA stores are locations that exclusively sell used vehicles. It also opened its fourth AutoNation Auto Auction in Atlanta.
Along with selling used vehicles at its AutoNation USA stores, AutoNation also purchases used vehicles from customers whether or not they buy a car. The company’s auto auctions are open only to dealers, and are used as a cost-effective outlet for the used vehicles it chooses not to sell at its stores.
During the quarterly earnings call, AutoNation’s EVP Sales & COO Lance E. Iserman, was asked if there were any concerns that used demand would slow down at AutoNation stores due to the effects of last year’s hurricanes dying down. While he acknowledged that AutoNation’s strong used performance did benefit from the surge in demand caused by the hurricanes, he’s still optimistic about how the used segment will do through the rest of the year.