AutoNation, the nation’s largest automotive retailer, announced record first-quarter earnings per share in a press release yesterday. Revenue for the first quarter of 2022 was $6.8 billion, up 14% from the same time a year ago. There was also a 47% gain in used car revenue, which more than offset a 6% reduction in new vehicle revenue and a strong After-Sales performance, with revenue up 18%.
Supercharged used car sourcing, a vast selection of inventory, and an established operating model, among other things, drove AutoNation’s first quarter 2022 used vehicle retail unit sales up 11% over the prior-year period.
Compared to the previous year, gross profit increased by 27% to $1.3 billion. New car gross profit per vehicle retailed was $6,112, up $3,373 or 123%. Used vehicle gross profit per vehicle was $1,566, down $178 or 10%. Customer Financial Services’ gross profit per vehicle sold was $2,672, up $454, or 20%, from the previous year. After-Sales gross profit was $461 million, up 19 percent from the same period last year.
In the press release, AutoNation Chief Executive Officer Mike Manley stated the following: “Our Associates delivered record results with outstanding performances across our business sectors. Used vehicle revenue increased 47% and our used vehicle retail unit sales increased 11% compared to the prior year. Our After-Sales team delivered a tremendous quarter with an increase in After-Sales gross profit of 19%. Consumer demand for personal vehicle ownership remains strong and our self-sustaining used vehicle business continues to meet this demand through our sourcing capabilities, selection of vehicles, footprint, digital tools, and core efficiencies.”
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