AutoNation profits miss estimates in second quarter, lower Florida sales a factor | Sun Sentinel

Quarterly vehicle sales were down 2 percent on a same-store basis, AutoNation said. Total revenue was $5.28 billion for the second quarter compared with $5.44 billion a year ago.

Jackson said he expects new-vehicle sales to continue a 2 to 3 percent drop.

On CNBC-TV’s “Squawk Box” Wednesday morning, Jackson said consumers are shifting from new vehicle purchases to “nearly new” because they see “great values.”

“In three or four years, our pre-owned business will be higher than our new car sales,” Jackson said.

He said new-vehicle sales “challenging,” especially with “crazy incentives” from manufacturers. Manufacturers are pushing their “excessive” inventory into the dealers’ hands and creating target pricing that creates a disparity in price from dealer to dealer, he said.

“It’s unfair to consumers,” Jackson said.

Jackson said in a news release that AutoNation’s pre-owned margins declined. The CEO said the one-price strategy “was successfully implemented in parts of the country and in others, it didn’t go well.”

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AutoNation profits miss estimates in second quarter, lower Florida sales a factor – Sun Sentinel.