AutoNation Inc.‘s fourth-quarter net income slipped 26 percent to $286.4 million while total revenue gained 2 percent to $6.7 million.
The company said it expects prices for new and used cars to decline this year as manufacturers crank up volumes and offer more incentives to price-sensitive buyers.
AutoNation, which pivoted to selling more used cars than new during the pandemic as chip shortages sapped inventory, has been bracing for lower car prices as auto production recovers.
CEO Mike Manley expects the seasonally-adjusted annual rate of light-vehicle sales to be close to 15 million this year, up from 13.7 million in 2022.
“You are going to see improved balance and level of inventory,” he said in a phone interview. “You’ll see it progressively more once you get out of the first quarter.”
The company’s fourth-quarter results topped Wall Street expectations and shares rose 4.4 percent to $147.52 in premarket trading. The shares have rallied 32 percent this year.
AutoNation said its gross profit on each new car sold in the fourth quarter dropped 13 percent from a year earlier to $5,633, while it was down 10 percent for each used car. The decline was offset by controlling costs and boosting AutoNation’s parts and service business, which posted a 12 percent jump in gross profit, Manley said.
Last year, AutoNation acquired CIG Financial to set up a captive finance arm to originate auto loans. It also acquired a stake in car-shopping website TrueCar Inc. to enhance its digital capabilities.
“These are things we’ve made sure we continue to improve, because everybody knew that new vehicle margins were progressively going to come down,” Manley said.
Manley also expects leasing to make a comeback this year as automakers seek to make cars more affordable. The US auto industry should eventually return to its pre-pandemic annual sales rate of about 17 million, because cars on the road are aging and owners will want replacements, he said.
“There’s no doubt in my mind that you’ll get back to a 17 million industry,” he said. But “it for sure is not going to be this year.”
Automotive News contributed to this report.
cheap stromectol – tegretol 400mg cost buy tegretol 400mg generic
order absorica pill – order linezolid 600mg sale purchase zyvox without prescription
amoxicillin sale – amoxil generic order ipratropium 100mcg for sale
buy generic omnacortil – buy azithromycin for sale prometrium 200mg sale
furosemide 100mg ca – lasix online order buy generic betamethasone online
order neurontin 600mg without prescription – buy clomipramine 25mg generic buy sporanox 100mg generic
purchase augmentin generic – buy ketoconazole generic buy duloxetine 20mg
buy monodox pill – cheap albuterol buy glucotrol 10mg generic
oral augmentin 375mg – nizoral 200 mg cost cymbalta 20mg sale
order rybelsus pills – order vardenafil 10mg without prescription buy periactin 4 mg
tadalafil cialis – genuine viagra brand viagra
order sildenafil without prescription – buy viagra 50mg online cheap buy cialis sale
cenforce 50mg pill – buy generic chloroquine for sale oral glucophage
order atorvastatin 80mg – lipitor 40mg us lisinopril 10mg ca
buy atorvastatin 10mg for sale – order norvasc 10mg sale buy zestril 10mg generic
purchase prilosec – buy omeprazole 10mg without prescription tenormin us
cytotec 200mcg pills – brand cytotec order generic diltiazem
generic zovirax – buy zyloprim 300mg sale buy crestor without a prescription
domperidone 10mg brand – purchase tetracycline generic where can i buy flexeril
motilium 10mg oral – cyclobenzaprine pills cyclobenzaprine 15mg cheap
order warfarin 5mg pill – generic metoclopramide generic losartan 50mg
buy levaquin 500mg pills – ranitidine 150mg pill zantac order online
cost esomeprazole 20mg – nexium uk cheap imitrex
order meloxicam 7.5mg pill – order celebrex generic brand flomax 0.2mg