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Carvana is bolstering its inspection and reconditioning capacity and in its first quarter delivered its best financial results ever, company executives said during its quarterly earning call. CEO Ernie Garcia said Carvana’s inspection and reconditioning infrastructure in its first quarter that ended March 31, had the capacity to handle 1.3 million vehicles per year, which is over triple its current volume, and the ability to expand that reconditioning capacity to ... [Read More]

CarGurus’ CarOffer digital wholesale platform continued to operate at a loss in the first quarter of 2024 though it did improve sequentially. The entire company’s net income surged, however. The CEO emphasized ongoing efforts to rebuild the wholesale business and integrate it into CarGurus’ other product offerings. “We are proud of the progress and improvement […] [Read More]

The first quarter of 2024 marked the first time since the second quarter of 2021 that AutoNation has shown an increase in new-vehicle sales and used-vehicle sales together in the same quarter. AutoNation CEO Michael Manley provided that news during the company’s first quarter 2024 earnings call on April 26. But used vehicles and the company’s AutoNation USA used-vehicle business were not a big focus of the earnings call, as AutoNation representatives spent more time discussing other areas such as its customer financial services business and inventory levels. The limited discussion that did take place on the company’s used-vehicle business was mostly ... [Read More]

Asbury Automotive Group in its first quarter pivoted its used-vehicle strategy, which had been focused on gross profit, to put more emphasis on volume, said David Hult, the company’s president and CEO. So when it came to sourcing used vehicles for retail sale in the quarter, Asbury doubled the percentage of vehicles it typically purchases outside of its own structure including trade-ins, from about 10% to 20%, said Hult, during the company’s quarterly earnings call for the three-month period ending March 31. Though the company makes less money on used vehicles it purchases for retail sale than those it takes on trade, the revised acquisition strategy ... [Read More]

Bigger isn’t always better. Sonic Automotive can attest to that. Last June, the company significantly downsized its EchoPark used-car operation, suspending operations of eight stores, 14 related delivery/buy centers and three Northwest Motorsport locations within the EchoPark segment. Now EchoPark is a success story, with ... [Read More]

Penske Automotive Group’s CarShop used-only retail stores saw sequentially improving sales and margins in the first quarter of 2024 as it recovered from somewhat dismal full-year 2023 used-vehicle results. “We’ve seen CarShop really make a big step forward in margin in the U.S. as we’ve been able to ... [Read More]

Ford Motor Co. has gone Hollywood with its dealer training. Last week, the automaker launched Ford University, a fully digital, video-based training platform that takes a “cinematic” and “storytelling” tactic to dealer training in a format designed to be personalized for each user. Sort of like a streaming video platform ... [Read More]

Group 1 Automotive’s first quarter used-vehicle sales were not bad given used-car price volatility in recent times. Its executives credited using technology in part for the results. “Given the speed and depth that the industry used car valuations declined in the U.S., during the latter half of 2023, we are pleased with ... [Read More]

While the used-car market for CarMax’s fiscal year 2024 was slightly less volatile than the previous year, the market still faced affordability challenges, negatively impacting the company’s results, CarMax president and CEO Bill Nash said in a press release. “We believe vehicle affordability challenges continued to impact our fourth quarter unit sales performance, with ongoing headwinds due to widespread inflationary pressures, higher interest rates, tightened lending standards and low consumer confidence,” Nash said. He put a more positive spin on the situation during the fourth quarter earnings call on April 11, however ... [Read More]

While the upswing in 2024 isn’t likely to be as strong as last year’s, the wholesale vehicle market is showing a gradual rebound in volumes and has started the year with some impressive gains. At the Manheim auto auction chain, wholesale sales climbed in 11 of the first 13 weeks of the year and were up 15% year-over-year in the first quarter, said Jeremy Robb, senior director of economic and industry insights at parent company Cox Automotive. Year-to-date through February, there were ... [Read More]