FORT LAUDERDALE, Fla. -

AutoNation is continuing to sharpen its strategy on how to get the most out of high-mileage vehicles, including the concept of rolling out lots that carry only premium brand models.

President and chief operating officer Mike Maroone explained why, so far, AutoNation has opened just one premium value outlet, while it already has 28 non-luxury vehicle value outlets in its pipeline.

“We’re still in the process of validating that concept,” Maroone said last week as AutoNation shared its third-quarter performance. “It really requires critical mass in premium luxury stores around it. So far, we’re pleased with the results.

“Again there are premium luxury vehicles, just like non-luxury, that have high mileage and have been in service a lot longer. There seems to be a market for it, but I think it’s too early to speak to a roll out,” Maroone added.

Maroone said AutoNation is spending more money on reconditioning, but the company has been trying to keep that rise to a minimum. He said the market is gradually adjusting to inventories being filled with units having 100,000 miles on the odometer or more.

“We need to be sure we stock those outlets aggressively and provide customers a real choice,” Maroone said.

“Certainly there are some adjustments going on from a customer point of view in terms of seeing used vehicles with much higher mileage than they’re accustomed to,” he continued. “I think we’re going to have to be creative and keep our costs for reconditioning down and continue to try to execute on a higher level.”

During the third quarter, AutoNation’s gross profit per used vehicle retailed moved 4.2 percent higher year-over-year to $1,588. The company also turned 3.2 percent more used models during the third quarter, moving 45,643 units.