3 AutoNation USA stores open so far this year

AutoNation Inc. opened three used-vehicle-only AutoNation USA stores this year with more in the works, moving the country's second-largest dealership group closer to its goal of 130-plus outlets by the end of 2026.

"The expansion of AutoNation USA remains a core tenet of our expansion and densification efforts," AutoNation CEO Mike Manley said on the company's April 20 earnings call.

AutoNation USA stores opened in the first quarter in Austin, Texas, and Albuquerque, N.M., CFO Joe Lower said on the call. A Colorado Springs, Colo., location had a grand opening Tuesday, May 16.

Under then-CEO Mike Jackson, AutoNation in 2016 revived the AutoNation USA brand, years after Jackson had closed most of the group's used-only stores. He then called for as many as 20 possible stores. The effort continued, initially, until 2018, when AutoNation said it would pause those expansion plans. It again revamped growth efforts in 2020 for the brand and by 2021 had set the 130 or more store goal.

Today, there are 16 AutoNation USA locations across nine states, according to the company's website.

Beyond the Albuquerque, Austin and Colorado Springs locations, AutoNation USA has outlets in Phoenix and Avondale, Ariz. Denver has two stores, and there are outlets in Kennesaw, Ga.; St. Louis; Henderson, Nev.; Charlotte, N.C.; and Charleston, S.C. Other locations in Texas include Corpus Christi, Houston, Katy and San Antonio.

AutoNation disclosed in February that it had 20 additional AutoNation USA stores under development, with at least half of them slated to open in the next year. Four stores opened in 2022.

On the company's first-quarter earnings call, Manley reiterated that the goal for AutoNation USA is to draw customers who may seek maintenance or other services long after they acquire their vehicles. By building AutoNation USA to offer car maintenance options, "repair effectively becomes an AutoNation USA after-sales division," he said.

Aiding that effort is AutoNation's acquisition of auto lender CIG Financial that closed in October. The move was designed in part to support AutoNation USA's growth and further develop relationships with customers throughout vehicle ownership. AutoNation began offering indirect vehicle financing in its AutoNation USA stores in the fourth quarter, according to a regulatory filing.

The company sold 67,539 used vehicles in the first quarter of this year, down 15 percent. Price hikes helped boost the group's used-car gross profit per vehicle to $2,117, 35 percent higher than the same period in 2022.

AutoNation, of Fort Lauderdale, Fla., ranks No. 2 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 229,971 new vehicles in 2022. The company sold 299,806 used vehicles last year, including through its AutoNation USA and franchised dealerships.