AutoNation Sells More Used Cars — And At Higher Profits

Both second quarter and first-half used-vehicle sales for AutoNation beat year-ago figures, but the improvements in used-car gross profits per vehicle were even more impressive.
AutoNation moved 52,565 used retail units in Q2 for a 1.0-percent year-over-year gain, and it sold 104,792 used retail vehicles through six months of the year, which beats the year-ago pace by 2.1 percent.
But gross profit per vehicle retailed in the second quarter was up 5.4 percent at $1,685. And for the year, the rate of improvement was stronger — gross profit per used unit was at $1,732, a 6.7-percent increase.
Total used-car retail gross profits were at $88.7 million in Q2, a 6.5-percent increase. For year-to-date, it was at $181.5 million, an 8.9-percent improvement.
In terms of overall results, AutoNation recorded its best-ever second-quarter earnings per share ($0.83). Net income from continuing operations in Q2 was $101 million, up from $90 million a year ago.
Mike Jackson, chairman and chief executive officer, said, “AutoNation delivered its 15th consecutive quarter of double-digit year-over-year growth in EPS. We reconfirm our expectation of U.S. industry new-vehicle unit sales to increase 3 percent to 5 percent, bringing U.S. industry new-vehicle sales above 16 million units in 2014.”