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AutoNation profit more than doubles on strong demand for used cars -Breaking


© Reuters. FILEPHOTO: A crowd looks at cars for sale at AutoNation’s dealership in Cerritos on December 9, 2015. REUTERS/Mario Anzuoni/File Photo

(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