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Home » How Does Autonation Make Money? A Look At Its Revenue Streams

How Does Autonation Make Money? A Look At Its Revenue Streams

How does AutoNation make money?

Let’s dive into how AutoNation generates revenue. The company primarily makes money from two key sources: selling new vehicles and selling used vehicles. These two segments represent the core of AutoNation’s business and drive a significant portion of their revenue.

So, how does AutoNation make money from selling new vehicles? Well, it’s pretty straightforward. They purchase new vehicles from manufacturers at wholesale prices and then sell them to customers at retail prices. The difference between the wholesale price and the retail price represents AutoNation’s profit margin. Of course, they also generate revenue from selling optional extras like extended warranties, financing, and various service packages.

But it’s not just new cars. AutoNation also thrives in the used vehicle market. They acquire used vehicles through a variety of channels, including trade-ins from customers, purchases from dealerships, and wholesale auctions. They then recondition and detail the vehicles before offering them for sale. Just like with new vehicles, the profit comes from the difference between the purchase price and the selling price.

AutoNation also generates revenue from financing, as they often provide loans to customers purchasing vehicles. This adds another layer to their income stream.

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