CDK or no CDK, EchoPark kept going full speed ahead in the second quarter of 2024. Sonic Automotive’s used-car stores had another stellar performance, posting quarterly adjusted EBITDA of $7.2 million – a second-quarter record and just short of the record $7.3 million of Q1 – which chairman and CEO David Smith said was “ahead of our previous guidance for a seasonally lighter second quarter, despite headwinds from the CDK outage at the end of June.” In Sonic’s earnings call for the quarter ending June 30, Smith ran through EchoPark’s encouraging numbers for Q2, including ... [Read More]

Despite the negative impact of the CDK outage in the second quarter, lead generator TrueCar narrowed its losses and launched TrueCar+, a digital marketplace allowing consumers to buy used, certified pre-owned, or new cars entirely online. “We are becoming a better version of TrueCar that more effectively addresses the evolving needs of consumers, dealers and […] [Read More]

Used-vehicle sales at AutoNation in June “were flat or accelerating” and the retailer’s business lines in general were “moving positively,” said Mike Manley, AutoNation’s CEO. Then came June 19 and a cyber-attack against dealership management software provider, CDK Global. The negative impact on virtually every business segment at AutoNation, including its used vehicle operations, was swift. The main functionality of CDK’s system was ... [Read More]

CarShop is officially gone in the United Kingdom. Its status in the U.S., on the other hand, seems much more solid. Last week in Penske Automotive Group’s earnings call for the second quarter of 2024, chief operating officer for international operations Randall Seymore confirmed that CarShop — Penske’s brand for its used-car stores — has been ... [Read More]

Lithia & Driveway's second quarter results took a hit from the CDK Global software outage. While the company reported its second highest quarterly revenue in company history, net income fell 28% compared to the same quarter in 2023 to $216.6 million. Revenue increased 14% to $9.2 billion. The group faced other headwinds, as well. “Free cash flows were impacted by declining EBITDA due to ... [Read More]

Carvana is adding physical capacity to increase its current volume by approximately three times, CEO Ernie Garcia said on the recent second quarter earnings call. Carvana has cited inventory constraints as a barrier to faster growth. Combined with the ADESA U.S. acquisition, Carvana has the real estate to handle vehicle reconditioning at approximately eight times the current run rate, he said. “We also have very clear plans and high confidence in ... [Read More]

Before the cyberattack that hit dealership software provider CDK Global, Group 1 Automotive’s used vehicle and aftersales businesses were performing well in the second quarter, said Group 1 president and CEO Daryl Kenningham. But the CDK outage “significantly affected” Group 1’s U.S operations from June 19-26, Kenningham said during Group 1’s second quarter 2024 earnings call on July 24. “We do believe that we could have [Read More]

The wholesale vehicle market has emerged out of COVID with a few new wrinkles, some driven by the pandemic itself and some happening coincidentally. For instance, more electric vehicles are making their way into the wholesale market, a trend likely applicable to the latter.  Even more pronounced than a rise in EVs is the increased digitization of the market, a phenomenon more applicable to the former. In data sets, presentations, interviews and calls with the media this summer, leading executives and analysts ... [Read More]

Even as inventory levels recover, affordability is still the biggest challenge facing dealers and auto finance companies in Canada, industry participants and analysts told Auto Remarketing Canada. “I would say while it is not unique to Canada, the biggest challenge (auto finance companies are facing) is simply the affordability factor,” said Mike Buckingham, managing director, auto finance at J.D. Power. Vehicle prices are up 30% since the third quarter of 2020 and interest rates have ... [Read More]

It hasn’t had quite the swings of, say, electoral politics in the past decade (or past month). But the ups and downs of used-vehicle prices in the last five years might rival the volatility of any other industry. According to the latest Industry Insights Report from Cars Commerce, the monthly average list price for used […] [Read More]