AutoNation, Inc.: Proliferation of AutoNation Finance & Strategic Capital Allocation

AutoNation reported its first quarter 2024 results, indicating an overall steady performance amidst various market dynamics. There was robust consumer demand for vehicles leading to the first quarterly increase in both new and used vehicle sales since the second quarter of 2021. New vehicle unit sales grew by 7%, and while the average selling price decreased by 5%, revenue from new vehicles rose by 2%. New vehicle margins declined slightly compared to the last quarter but were still relatively stable. Management noted improvements in inventory levels, suggesting that the supply chain issues are nearing resolution, though discrepancies still exist across various models and segments.