AutoNation profit more than doubles on strong demand for used cars -Breaking
(Reuters) – No. AutoNation Inc. (NYSE) – U.S. Auto retailer said Thursday that the first quarter profit exceeded $2 million. The strong demand for vehicles, as well as the preference of consumers for personal transport, drove robust sales.
AutoNation stated that the revenue generated from selling used cars increased 47% over a previous year, and that used car retail sales rose 11%.
Massive stimulus packages during the COVID-19 crisis also drove private car demand. Auto industry consultants claim that this led to record-breaking vehicle transaction prices.
Customers have pre-ordered the majority of new vehicles, according to the company.
AutoNation earned $362.1million, which is $5.78 per share for the quarter ending March 31. This compares with $239.4million, or $2.85, one year ago.
Revenue increased 14.4%, to $6.75 trillion