(Reuters) – No. 1 U.S. auto retailer AutoNation Inc said first-quarter profit more than doubled on Thursday, boosted by robust demand for used vehicles as consumer preference for personal transportation remained high despite surging vehicle prices.
AutoNation said revenue from the sale of used vehicles rose 47% from a year earlier, while used vehicle retail unit sales increased 11%.
Demand for private vehicles was also fueled by massive stimulus measures during the COVID-19 pandemic. That sent the average vehicle transaction price to a record high, according to auto industry consultants.
The company also said incoming new vehicle inventory, for the most part, has been pre-ordered by customers.
AutoNation’s net income was $362.1 million, or $5.78 per share, for the quarter ended March 31, compared with $239.4 million, or $2.85 per share, a year earlier.
Revenue rose 14.4% to $6.75 billion.
(Reporting by Ashwini Raj in Bengaluru; Editing by Amy Caren Daniel)
