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My guess is that it has been going on for years — new-car dealers have been making more money on used cars than new. It has been the industry's great secret.
Online used-car retailer Carvana's first-quarter net loss widened to nearly $53 million, while revenue and vehicle sales both more than doubled to records.
Net income at KAR Auction Services, parent of ADESA auctions, jumped 30 percent in the first quarter largely on a sharp drop in income taxes.
Sonic Automotive and Group 1 Automotive are expanding their used-vehicle plans, even as AutoNation pauses its used-only store plans to evaluate results so far.
At the 2018 NADA Show, several vendors demonstrated appraisal tools that promise to take the guesswork out of how much a dealership should offer for a trade-in.
The auction industry is likely to see fewer traditional wholesalers going forward, but they are evolving into online and smartphone app-based operations.
NADA Data figures showing that the average franchised dealership lost money on used cars in 2017 may overstate the case, but the squeezing of margins is real.
It was all hands on deck for an auction of used Lexus and Toyota vehicles on the retired aircraft carrier USS Midway.
Independent retailers are abundant, resilient and growing, but they don't necessarily pose a threat to franchised dealerships' used-vehicle operations.
Online auctions will continue to make inroads, but physical sites remain a necessity, a study prepared for the National Auto Auction Association found.
Reagor Dykes Auto Group, a budding powerhouse on Automotive News' list of the top 100 dealership groups in used retail sales, sells well beyond its west Texas base.
The closely watched ratio of used- to new-vehicle retail sales is a measure of dealership success. But in fact, it's a metric where very few dealerships excel.
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