AutoNation profit more than doubles on strong demand for used cars

div classBodysc17zpet90 cdBBJodivpReuters – No. 1 U.S. auto retailer AutoNation Inc said firstquarter 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.p

pAutoNation said revenue from the sale of used vehicles rose 47 from a year earlier, while used vehicle retail unit sales increased 11.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pDemand for private vehicles was also fueled by massive stimulus measures during the COVID19 pandemic. That sent the average vehicle transaction price to a record high, according to auto industry consultants.p

pThe company also said incoming new vehicle inventory, for the most part, has been preordered by customers. p

pAutoNations 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.p

pRevenue rose 14.4 to 6.75 billion. p