Rising car prices fuel AutoNation's great year




  • In Business
  • 2021-10-22 11:38:43Z
  • By Axios
 

Chip shortages could be viewed as a blessing for AutoNation at this point.

Driving the news: The car chain reported its sixth-consecutive quarterly earnings record on Thursday. That's thanks to higher consumer prices driven by production constraints.

Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for free

Why it matters: Demand for cars continues to eclipse supply, creating more room for AutoNation and other dealers to raise prices and lift profits.

By the numbers: September month-end inventory was about 5,000, less than a 10th of 2019 levels (56,000).

  • Same-store gross revenue rose 18% year over year and over 2019, while same-store gross profit rose 29% over 2020 - and a whopping and 45% over 2019.

Yes, but: Used car sales did the heavy lifting - same-store used car sales grew 20% compared to 2020 and 23% versus 2019. New car sales fell 11% from a year earlier and fell 20% from 2019.

On the flip side, for consumers selling or trading in cars, the price appreciation is a windfall, Mike Jackson, AutoNation CEO, said on the earnings call Thursday.

Go deeper: Used car prices are increasing again

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business