AutoNation Wildly Profitable While Car Prices Are Grotesquely High

With automobile prices ballooning to egregiously high levels, one might assume that the industry would be in rough shape. But they’d be dead wrong. Supply chain disruptions have actually created a captive market where consumers are desperate to lay their hands on whatever products are available. In the automotive realm, this has allowed retailers to set ludicrous prices and rake in larger profits per transaction. While inflation may eventually catch up to these entities, the gravy train is currently parked at the station and dousing big business with its warm, brown effluence.

Nobody knows this better than the folks at AutoNation. Because the company just released a quarterly profit report that blew its rosiest projections out of the water. Net income its ongoing operations was $361.7 million for Q3 2021, double the $182.6 million witnessed in Q3 of 2020, while revenue rose 18 percent to $6.4 billion.

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  • Surakmn Wrong question, for a lot of people even a PHEV has enough range for commute or errands. The problem is lack of a cost effective, speedy and available charging infrastructure. With an ICE you're usually never more than a few miles away from a ten minute fill up. THAT is what makes me comfortable on a cross country trip. Electrics can manage more routes than many people realize but you have to plan it out and allow for charging times and pray charging stations are real and working shopping the way. It's a few years out yet.
  • John I had an 87 escort GT that was silver, it was a fun little car and got 35+ mpg average, one time I got 42 average on a turnpike trip.
  • Jho65697139 That's going to take a lot of buffing.
  • Corey Lewis No need for unique qualifications to care for this thing, it's just a Corolla with a different body on it.
  • Jeff S How's you Fiat doing?