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What changed in AUTONATION, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of AUTONATION, INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+310 added−316 removedSource: 10-K (2025-02-14) vs 10-K (2024-02-16)

Top changes in AUTONATION, INC.'s 2024 10-K

310 paragraphs added · 316 removed · 228 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

52 edited+7 added−37 removed86 unchanged
Biggest changeThese segments are comprised of retail automotive franchises that sell the following new vehicle brands: Domestic Import Premium Luxury Buick Ford Acura Mazda Alfa Romeo Land Rover Cadillac GMC Fiat Nissan Aston Martin Lexus Chevrolet Jeep Genesis Subaru Audi Maserati Chrysler Lincoln Honda Toyota Bentley Mercedes-Benz Dodge Ram Hyundai Volkswagen BMW MINI Infiniti Volvo Jaguar Porsche 1 Table of Contents The following table sets forth information regarding our new vehicle revenues and retail new vehicle unit sales for the year ended, and the number of franchises owned as of, December 31, 2023: New Vehicle Revenues (in millions) Retail New Vehicle Unit Sales % of Total Retail New Vehicle Units Sold Franchises Owned Domestic: Ford, Lincoln $ 1,367.7 25,859 10.6 35 Chevrolet, Buick, Cadillac, GMC 1,200.0 24,794 10.1 40 Chrysler, Dodge, Jeep, Ram 957.3 16,818 6.9 80 Domestic Total 3,525.0 67,471 27.6 155 Import: Toyota 1,819.0 47,467 19.4 19 Honda 1,085.0 30,968 12.7 24 Nissan 165.8 5,111 2.1 7 Hyundai 291.3 8,218 3.4 11 Subaru 305.6 8,810 3.6 8 Other Import 329.3 7,494 3.0 21 Import Total 3,996.0 108,068 44.2 90 Premium Luxury: Mercedes-Benz 1,848.1 22,485 9.2 38 BMW 1,663.2 22,928 9.4 16 Lexus 415.2 7,792 3.2 3 Audi 417.3 6,680 2.7 9 Jaguar Land Rover 413.6 4,278 1.7 22 Other Premium Luxury 489.0 4,844 2.0 16 Premium Luxury Total 5,246.4 69,007 28.2 104 $ 12,767.4 244,546 100.0 349 The franchises in each segment also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products.
Biggest changeOur Domestic, Import, and Premium Luxury segments are comprised of retail automotive franchises that sell the following new vehicle brands: Domestic Import Premium Luxury Buick Ford Acura Mazda Aston Martin Land Rover Cadillac GMC Genesis Nissan Audi Lexus Chevrolet Jeep Honda Subaru Bentley Mercedes-Benz Chrysler Lincoln Hyundai Toyota BMW MINI Dodge Ram Infiniti Volkswagen Jaguar Porsche Volvo 1 Table of Contents The following table sets forth information regarding our new vehicle revenues and retail new vehicle unit sales for the year ended, and the number of franchises owned as of, December 31, 2024: New Vehicle Revenues (in millions) Retail New Vehicle Unit Sales % of Total Retail New Vehicle Units Sold Franchises Owned Domestic: Ford, Lincoln $ 1,453.8 28,154 11.1 30 Chevrolet, Buick, Cadillac, GMC 1,305.5 27,504 10.8 39 Chrysler, Dodge, Jeep, Ram 767.8 13,610 5.3 76 Domestic Total 3,527.1 69,268 27.2 145 Import: Toyota 2,030.4 52,427 20.6 19 Honda 1,153.0 33,048 13.0 24 Nissan 136.9 4,421 1.7 6 Hyundai 343.2 9,227 3.6 11 Subaru 333.6 9,763 3.8 8 Other Import 322.9 7,356 2.9 18 Import Total 4,320.0 116,242 45.6 86 Premium Luxury: Mercedes-Benz 1,798.2 23,130 9.1 38 BMW 1,651.9 22,939 9.0 16 Lexus 480.0 8,830 3.5 3 Audi 327.1 5,191 2.0 9 Jaguar Land Rover 512.1 5,176 2.0 14 Other Premium Luxury 431.8 3,939 1.6 14 Premium Luxury Total 5,201.1 69,205 27.2 94 $ 13,048.2 254,715 100.0 325 The franchises in each of our Domestic, Import, and Premium Luxury segments also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products.
Our customers are able to complete key automotive retail- and service-related transactions online through our digital channels such as selecting a vehicle with a guaranteed price, scheduling a test drive, calculating payment options, receiving a certified trade-in or purchase offer for a vehicle that a customer wants to sell, applying for financing, selecting vehicle protection products, scheduling in-store pick up or home delivery, arranging service appointments, receiving service updates, paying for maintenance and repair services, and signing paperwork 3 Table of Contents electronically.
Our customers are able to complete key automotive retail- and service-related transactions online through our digital channels such as selecting a vehicle with a guaranteed price, scheduling a test drive, calculating payment options, receiving a certified trade-in or purchase offer for a vehicle that a customer wants to sell, applying for financing, selecting vehicle protection products, scheduling in-store pick-up or home delivery, arranging service appointments, receiving service updates, paying for maintenance and 3 Table of Contents repair services, and signing paperwork electronically.
Our exposure to loss in connection with financing arrangements with third-party lenders generally is limited to the commissions that we receive. We also originate and service consumer auto finance loans through our captive finance company.
Our exposure to loss in connection with financing arrangements with third-party lenders generally is limited to the commissions that we receive. We also originate and service consumer auto finance loans through our captive auto finance company.
Further, our captive finance company operations are subject to regulations and supervision by the Consumer Financial Protection Bureau (the “CFPB”). Among other things, the CFPB is authorized to take action to prevent auto finance companies from engaging in unfair, deceptive, or abusive acts and practices and to issue rules requiring enhanced disclosures concerning consumer financial products and services.
Further, our captive auto finance company operations are subject to regulations and supervision by the Consumer Financial Protection Bureau (the “CFPB”). Among other things, the CFPB is authorized to take action to prevent auto finance companies from engaging in unfair, deceptive, or abusive acts and practices and to issue rules requiring enhanced disclosures concerning consumer financial products and services.
In addition, state attorneys general have authority under their respective laws and regulations, and under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacted in 2010, to investigate and/or regulate certain aspects of our operations. 7 Table of Contents Our financing activities with customers, including our origination and servicing activities through our captive finance company, are subject to the federal Truth-in-Lending Act, Consumer Leasing Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, federal and state prohibitions against unfair, deceptive, and abusive acts and practices, and various other federal laws and regulations, as well as state and local motor vehicle finance laws, leasing laws, collection, repossession, and installment finance laws, usury laws, and other installment sales and leasing laws and regulations.
In addition, state attorneys general have authority under their respective laws and regulations, and under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacted in 2010, to investigate and/or regulate certain aspects of our operations. 7 Table of Contents Our financing activities with customers, including our origination and servicing activities through our captive auto finance company, are subject to the federal Truth-in-Lending Act, Consumer Leasing Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, federal and state prohibitions against unfair, deceptive, and abusive acts and practices, and various other federal laws and regulations, as well as state and local motor vehicle finance laws, leasing laws, collection, repossession, and installment finance laws, usury laws, and other installment sales and leasing laws and regulations.
We face competition from (i) several public companies that operate numerous automotive retail stores or collision centers on a regional or national basis, including franchised dealers that sell new and used vehicles, non-franchised dealers that sell only used vehicles, and manufacturers that sell directly to customers, (ii) private companies that operate automotive retail stores or collision centers in our markets, (iii) electric vehicle manufacturers who sell directly to consumers, and (iv) online and mobile sales platforms.
We face competition from (i) several public companies that operate numerous automotive retail stores or collision centers on a regional or national basis, including franchised dealers that sell new and used vehicles, non-franchised dealers that sell only used vehicles, and manufacturers that sell directly to customers, (ii) private companies that operate automotive retail stores or collision centers in our markets, (iii) electric vehicle manufacturers who sell directly to consumers, and (iv) online and mobile sales and service platforms.
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are available, free of charge, on our Investor Relations website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (the “SEC”). 14 Table of Contents
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are available, free of charge, on our Investor Relations website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (the “SEC”). 12 Table of Contents
This sector is primarily comprised of banks, captive finance divisions of new car manufacturers, credit unions, and independent finance companies. According to industry sources, this sector represented more than $1 trillion in outstanding receivables as of December 31, 2023. Our primary competitors in this sector are banks and credit unions that offer direct and indirect financing to customers purchasing vehicles.
This sector is primarily comprised of banks, captive finance divisions of new car manufacturers, credit unions, and independent finance companies. According to industry sources, this sector represented more than $1 trillion in outstanding receivables as of December 31, 2024. Our primary competitors in this sector are banks and credit unions that offer direct and indirect financing to customers purchasing vehicles.
We also offer our customers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products, many of which are AutoNation-branded.
We also offer our customers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products, some of which are AutoNation-branded.
The core brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2023, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
The core brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2024, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
For additional financial information regarding our three reportable segments, refer to Note 22 of the Notes to Consolidated Financial Statements set forth in Part II, Item 8 of this Form 10-K.
For additional financial information regarding our four reportable segments, refer to Note 22 of the Notes to Consolidated Financial Statements set forth in Part II, Item 8 of this Form 10-K.
See “Human Capital Resources” and “Corporate Social Responsibility – Our Workplace” below for more information about how we invest in our associates to help us prepare leaders with the vision, integrity, and expertise that enhance our operational excellence every day, drive store profitability, and create both positive employee and customer experiences. • Continue to provide an industry-leading automotive retail customer ex perience in our stores and through our digital channels .
See “Human Capital Resources” below for more information about how we invest in our associates to help us prepare leaders with the vision, integrity, and expertise that enhance our operational excellence every day, drive store profitability, and create both positive employee and customer experiences. • Continue to provide an industry-leading automotive retail customer ex perience in our stores and through our digital channels .
Esparza served as Chief Human Resource Officer of Essilor North America, part of EssilorLuxottica, the global leader in the design, manufacture, and distribution of ophthalmic lenses, frames, and sunglasses, from July 2019 to June 2022. From 2017 to 2019, Ms. Esparza served as Chief Human Resources Officer at Par Pacific Holdings, Inc.
Esparza served as Chief Human Resource Officer of Essilor North America, part of 11 Table of Contents EssilorLuxottica, the global leader in the design, manufacture, and distribution of ophthalmic lenses, frames, and sunglasses, from July 2019 to June 2022. From 2017 to 2019, Ms. Esparza served as Chief Human Resources Officer at Par Pacific Holdings, Inc.
Our stores, which we believe include some of the most recognizable and well-known in our key markets, sell 34 different new vehicle brands.
Our stores, which we believe include some of the most recognizable and well-known in our key markets, sell 31 different new vehicle brands.
We seek to maximize the performance and utilization of our assets through operational excellence and expand through the development and/or acquisition of key capabilities, products, and resources. We achieve this by both optimizing our existing business and capturing new and developing opportunities.
We seek to maximize the performance and utilization of our assets through operational excellence and expand through the development and/or acquisition of key capabilities, products, and resources. We achieve this by both 2 Table of Contents optimizing our existing business and capturing new and developing opportunities.
Additionally, we have minority ownership stakes in Waymo, the self-driving technology company of Alphabet Inc., and TrueCar, Inc., a leading automotive digital marketplace that lets auto buyers and sellers connect to its nationwide network of certified dealers. These investments signal our continued commitment to emerging technologies that impact the automotive industry.
Additionally, we have minority ownership stakes in and productive collaborations with Waymo, the self-driving technology company of Alphabet Inc., and TrueCar, Inc., a leading automotive digital marketplace that lets auto buyers and sellers connect to its nationwide network of certified dealers. These investments and collaborations reflect our continued commitment to emerging technologies that impact the automotive industry.
We also offer indirect financing on certain vehicles we sell through our captive finance company. The following charts present the contribution to total revenue and gross profit by each of new vehicle, used vehicle, parts and service, and finance and insurance sales in 2023.
We also offer indirect financing through our captive auto finance company on vehicles we sell. The following charts present the contribution to total revenue and gross profit by each of new vehicle, used vehicle, parts and service, and finance and insurance sales in 2024.
We continue to invest in strategic partnerships and broaden our offerings to evolve with the changing automotive retail industry and to 2 Table of Contents widen our access to new and expanding sales channels for vehicles, parts and service, financing, and personal transportation services.
We continue to invest in strategic partnerships and broaden our offerings to evolve with the changing automotive retail industry and to widen our access to new and expanding sales channels for vehicles, parts and service, financing, and personal transportation services.
We continue to invest in the AutoNation retail brand, promoting personal transportation for America’s drivers, leading the charge to make transformational change in the automotive industry, and driving out cancer coast to coast. We are committed to delivering easy, transparent, and customer-centric services for our customers’ personal transportation needs. The AutoNation retail brand includes our AutoNation USA used vehicle stores.
We continue to invest in the AutoNation retail brand, promoting personal transportation for America’s drivers, leading the charge to make transformational change in the automotive industry, and driving out cancer coast to coast. We are committed to delivering easy, transparent, and customer-centric services for our customers’ personal transportation needs.
Szlosek served as the Senior Vice President and Chief Financial Officer of Honeywell International, a diversified technology and manufacturing company, from April 2014 to August 2018. Gianluca Camplone has served as our Chief Operating Officer, Precision Parts Business, and Executive Vice President, Head of Mobility, Business Strategy, and Development since March 2022. Mr.
Szlosek served as the Senior Vice President and Chief Financial Officer of Honeywell International, a diversified technology and manufacturing company, from April 2014 to August 2018. Gianluca Camplone has served as our Chief Operating Officer, AutoNation Parts, and Executive Vice President, Business Development since March 2022. Mr.
In 2023, we launched AutoNationParts.com, a new e-commerce website enabling customers to purchase high-quality automotive parts and accessories at competitive prices, shipped directly to their homes. In addition to our retail business, we also have wholesale parts operations, which sell automotive parts to both collision repair shops and independent vehicle repair providers.
AutoNationParts.com, our e-commerce website, enables customers to purchase high-quality automotive parts and accessories at competitive prices, shipped directly to their homes. In addition to our retail business, we also have wholesale parts operations, which sell automotive parts to both collision repair shops and independent vehicle repair providers.
ITEM 1. BUSINESS General AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of December 31, 2023, we owned and operated 349 new vehicle franchises from 252 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region.
ITEM 1. BUSINESS General AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of December 31, 2024, we owned and operated 325 new vehicle franchises from 243 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region.
In addition, we have been able to attain industry-leading finance and insurance gross profit per vehicle retailed as we have increased the penetration of products sold per vehicle. Our capital allocation strategy is focused on growing long-term value per share.
In addition, we have been able to attain industry-leading finance and insurance gross profit per vehicle retailed as we have maintained a strong product penetration of products sold per vehicle. Our capital allocation strategy is focused on growing long-term value per share.
We offer AutoNation-branded Customer Financial Services products (including extended service and maintenance contracts and other vehicle protection products), parts and accessories, and vehicle financing, as well as collision repair services at AutoNation-branded collision centers, and auction services at AutoNation-branded automotive auctions.
In addition, we offer AutoNation-branded Customer Financial Services products (including extended service and maintenance contracts and other vehicle protection products) and parts and accessories, as well as collision repair services at AutoNation-branded collision centers, mobile automotive repair and maintenance services through AutoNation Mobile Services, and auction services at AutoNation-branded automotive auctions.
As of December 31, 2023, we also owned and operated 53 AutoNation-branded collision centers, 19 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, and an auto finance company.
As of December 31, 2024, we also owned and operated 52 AutoNation-branded collision centers, 24 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, and an auto finance company.
AutoNation Mobile Service, our mobile solution for automotive repair and maintenance services, offers customers the convenience of services and repairs at their home, workplace, or on-site for fleet vehicles. In 2023, we launched AutoNationParts.com, a new e-commerce website enabling customers to purchase high-quality automotive parts and accessories at competitive prices, shipped directly to their homes.
AutoNation Mobile Service, our mobile solution for automotive repair and maintenance services, offers customers the convenience of services and repairs at their home, workplace, or on-site for fleet vehicles. AutoNationParts.com, our e-commerce website, enables customers to purchase high-quality automotive parts and accessories at competitive prices, shipped directly to their homes.
(NYSE: PARR), which owns and operates market-leading energy and infrastructure businesses. In addition, Ms. Esparza has held various human resources leadership roles at Celanese, Flowserve, Ingersoll-Rand, and Eaton with global responsibilities. Dave Koehler has served as our Chief Operating Officer, Non-Franchised Business since March 2022. Mr.
(NYSE: PARR), which owns and operates market-leading energy and infrastructure businesses. In addition, Ms. Esparza has held various human resources leadership roles at Celanese, Flowserve, Ingersoll-Rand, and Eaton with global responsibilities. Dave Koehler has served as our Chief Operating Officer, Non-Franchised Business since March 2022. Mr. Koehler is responsible for overseeing AutoNation USA, AutoNation Mobile Service, and AutoNation Auto Auctions.
We sell the products on a commission basis, and we also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements with the issuers of those products. 5 Table of Contents As of December 31, 2023, we operated stores in the following states: State Number of Retail Stores (1) Number of Franchises Number of Other Locations (2) % of Total Revenue Florida 49 59 19 25 Texas 46 62 17 19 California 42 59 2 19 Colorado 20 31 1 6 Arizona 16 18 4 6 Washington 14 19 3 5 Georgia 17 24 4 4 Nevada 12 13 1 4 Maryland 14 16 3 3 Illinois 7 8 1 2 Tennessee 7 7 1 2 South Carolina 10 13 1 1 Ohio 4 4 3 1 North Carolina 1 — — 1 Virginia 2 2 — 1 Alabama 3 6 — 1 Minnesota (3) 1 1 — — New York (3) 3 6 — — New Mexico (3) 1 — — — Missouri (3) 1 — — — New Jersey (3) 1 1 — — Total 271 349 60 100 (1) Includes franchised dealerships and AutoNation USA used vehicle stores.
We sell the products on a commission basis, and we also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements with the issuers of those products. 5 Table of Contents As of December 31, 2024, we operated stores in the following states: State Number of Retail Stores (1) Number of Franchises Number of Other Locations (2) % of Total Revenue Florida 51 57 18 26 California 41 55 2 19 Texas 46 61 17 19 Colorado 20 31 1 6 Arizona 17 17 4 6 Washington 14 18 3 5 Georgia 14 20 4 4 Nevada 12 13 1 4 Maryland 14 14 3 3 Illinois 7 8 1 2 Tennessee 7 7 1 1 South Carolina 10 12 1 1 North Carolina 1 — — 1 Ohio 3 3 3 1 Virginia 2 2 — 1 Alabama 2 2 — 1 New Mexico (3) 1 — — — New York (3) 3 4 — — Missouri (3) 1 — — — New Jersey (3) 1 1 — — Total 267 325 59 100 (1) Includes franchised dealerships and AutoNation USA used vehicle stores.
AutoNation Finance, our captive auto finance company, provides financing to qualified retail customers on certain new and used vehicles we sell. Through AutoNation Finance, we have further extended our relationship with our customers beyond the car-buying experience.
AutoNation Finance, our captive auto finance company, provides financing to qualified retail customers on certain new and used vehicles we sell. Through AutoNation Finance, we have further extended our relationship with our customers beyond the car-buying experience and participate in the customer’s entire vehicle ownership cycle.
For convenience, the terms “AutoNation,” “Company,” and “we” are used to refer collectively to AutoNation, Inc. and its subsidiaries, unless otherwise required by the context. Our store and other operations are conducted by our subsidiaries. Reportable Segments As of December 31, 2023, we had three reportable segments: Domestic, Import, and Premium Luxury.
For convenience, the terms “AutoNation,” “Company,” “we,” “us,” and “our” are used to refer collectively to AutoNation, Inc. and its subsidiaries, unless otherwise required by the context. Our store and other operations are conducted by our subsidiaries. Reportable Segments As of December 31, 2024, we had four reportable segments: Domestic, Import, Premium Luxury, and AutoNation Finance.
We also continue to actively pursue acquisitions and new store opportunities that meet our strategic and financial objectives.
We also continue to actively pursue acquisitions and new store opportunities, as well as other strategic initiatives, that meet our strategic and financial objectives.
Human Capital Resources Purpose and Culture At AutoNation, our associates are our greatest asset. As of December 31, 2023, we employed approximately 25,300 full-time and part-time employees, whom we refer to as “associates,” approximately 170 of whom were covered by collective bargaining agreements.
Human Capital Resources At AutoNation, our associates are our greatest asset. As of December 31, 2024, we employed approximately 25,100 full-time and part-time employees, whom we refer to as “associates,” approximately 170 of whom were covered by collective bargaining agreements. The development, attraction, and retention of people is central to the culture at AutoNation.
Finally, we leverage our scale to reduce costs related to purchasing certain equipment, supplies, and services through national vendor relationships. Our business benefits from a well-diversified portfolio of automotive retail franchises. In 2023, approximately 44% of our segment income for reportable segments was generated by Premium Luxury franchises, approximately 34% by Import franchises, and approximately 22% by Domestic franchises.
Finally, we leverage our scale to reduce costs related to purchasing certain equipment, supplies, and services through national vendor relationships. Our business benefits from a well-diversified portfolio of automotive retail franchises. In 2024, approximately 38% of total revenue was generated by Premium Luxury franchises, approximately 30% by Import franchises, and approximately 27% by Domestic franchises.
Coleman Edmunds 59 Executive Vice President, General Counsel and Corporate Secretary 28 28 Lisa Esparza 54 Executive Vice President and Chief Human Resource Officer 2 2 Dave Koehler 55 Chief Operating Officer, Non-Franchise Business 12 31 Jeff Parent 59 Chief Operating Officer 1 26 Michael Manley has served as our Chief Executive Officer and as a member of our Board since November 1, 2021.
Coleman Edmunds 60 Executive Vice President, General Counsel and Corporate Secretary 29 29 Lisa Esparza 55 Executive Vice President and Chief Human Resource Officer 3 3 Dave Koehler 56 Chief Operating Officer, Non-Franchised Business 13 32 Jeff Parent 60 Chief Operating Officer 2 27 Michael Manley has served as our Chief Executive Officer and as a member of our Board since November 2021.
Many of the valuable benefits we offer are free to our associates, including an innovative “Drive Pink”-inspired, Company-paid cancer insurance plan that provides financial assistance to associates and their eligible dependents who are diagnosed with cancer.
We offer many benefits at no additional cost to our associates, including our Employee Assistance Program, Company-paid maternity leave, and our innovative “Drive Pink”-inspired Company-paid cancer insurance plan that provides financial assistance to associates and their eligible dependents who are diagnosed with cancer.
Koehler is responsible for overseeing AutoNation USA, AutoNation Mobile Service, AutoNation Auto Auctions, and the AutoNation Collision business. Previously, Mr. Koehler was the Eastern Region President for our stores located in Alabama, Florida, Georgia, Illinois, Maryland, Minnesota, New York, Ohio, Tennessee, and Virginia from May 2019 to February 2022.
Previously, Mr. Koehler was the Eastern Region President for our stores located in Alabama, Florida, Georgia, Illinois, Maryland, Minnesota, New York, Ohio, Tennessee, and Virginia from May 2019 to February 2022. Prior to being promoted to Eastern Region President in May 2019, Mr.
Prior to joining Gulf States Toyota as a Senior Vice President in 2010, Mr. Parent held various senior executive positions at Nissan Canada Inc., Volkswagen of America, Inc., and VW Credit, Inc. Available Information Our website is located at www.autonation.com , and our Investor Relations website is located at investors.autonation.com .
Parent held various senior executive positions at Nissan Canada Inc., Volkswagen of America, Inc., and VW Credit, Inc. Available Information Our website is located at www.autonation.com , and our Investor Relations website is located at investors.autonation.com .
New vehicle unit volume benefited from increases in new vehicle inventory levels due to higher levels of manufacturer vehicle production. The increasing supply and availability of new vehicle inventory has adversely impacted market demand for used vehicles, particularly for higher-priced used vehicles.
New vehicle unit volume in 2024 benefited from increases in new vehicle inventory levels due to higher levels of manufacturer vehicle production. The increasing supply and availability of new vehicle inventory has resulted in a shift in mix from used vehicles to new vehicles.
Camplone was a Senior Partner at McKinsey & Company, a global management consulting firm, from December 1996 to February 2022, 13 Table of Contents where he was the leader in their Advanced Industries global practice and Private Equity Industrial practice in North America. C.
Camplone is responsible for overseeing the Company’s business strategy, corporate development, and Parts teams. Prior to joining AutoNation, Mr. Camplone was a Senior Partner at McKinsey & Company, a global management consulting firm, from December 1996 to February 2022, where he was the leader in their Advanced Industries global practice and Private Equity Industrial practice in North America. C.
We continue to expand our footprint and increase scope and scale through both the acquisition of new dealerships and franchises and through the expansion of our AutoNation USA used vehicle stores.
In addition, we estimate that there were approximately twice as many independent used vehicle dealers in the United States. We continue to expand our footprint and increase scope and scale through both the acquisition of new dealerships and franchises and through the expansion of our AutoNation USA used vehicle stores.
Except to the extent that differences among reportable segments are material to an understanding of our business taken as a whole, the description of our business in this report is presented on a consolidated basis.
Our AutoNation Finance segment is comprised of our captive auto finance company, which provides indirect financing to qualified retail customers on vehicles we sell. Except to the extent that differences among reportable segments are material to an understanding of our business taken as a whole, the description of our business in this report is presented on a consolidated basis.
Although we have, subject to certain limitations and exclusions, substantial insurance, we cannot assure you that we will not be exposed to uninsured or underinsured losses that could have a material adverse effect on our business, financial condition, results of operations, or cash flows. 9 Table of Contents Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate liabilities on reported and unreported claims.
Although we have, subject to certain limitations and exclusions, substantial insurance, we cannot assure you that we will not be exposed to uninsured or underinsured losses that could have a material adverse effect on our business, financial condition, results of operations, or cash flows.
Parent oversees AutoNation’s day-to-day operations and works as part of the leadership team to execute the company’s strategic vision and drive operational excellence. Prior to joining AutoNation, Mr. Parent served as President and General Manager of Gulf States Toyota, Inc., one of the world’s largest independent distributors of Toyota vehicles and parts, from February 2017 until October 2023.
Prior to joining AutoNation, Mr. Parent served as President and General Manager of Gulf States Toyota, Inc., one of the world’s largest independent distributors of Toyota vehicles and parts, from February 2017 until October 2023. Prior to joining Gulf States Toyota as a Senior Vice President in 2010, Mr.
Prior to being promoted to Eastern Region President in May 2019, Mr. Koehler held several key positions within AutoNation, including General Manager, Market President, and Senior Vice President of Sales between 2011 to 2019. Jeff Parent has served as our Chief Operating Officer since October 2023. Mr.
Koehler held several key positions within AutoNation, including General Manager, Market President, and Senior Vice President of Sales between 2011 to 2019. Jeff Parent has served as our Chief Operating Officer since October 2023. Mr. Parent oversees AutoNation’s day-to-day operations and works as part of the leadership team to execute the company’s strategic vision and drive operational excellence.
Operations Each of our stores acquires new vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same brand franchise.
For additional information regarding our capital allocation, refer to “Liquidity and Capital Resources – Capital Allocation” in Part II, Item 7 of this Form 10-K. 4 Table of Contents Operations Each of our franchised dealerships acquires new vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same brand franchise.
According to industry sources, as of December 31, 2023, there were approximately 16,800 franchised automotive dealerships, which sell both new and used vehicles, in the United 8 Table of Contents States. In addition, we estimate that there were approximately twice as many independent used vehicle dealers in the United States.
Lower new vehicle sales in recent years has also resulted in lower availability of used vehicle inventory, particularly for late model used vehicles. According to industry sources, as of December 31, 2024, 8 Table of Contents there were approximately 17,000 franchised automotive dealerships, which sell both new and used vehicles, in the United States.
Our Board of Directors and its Committees provide oversight on a broad range of human capital management topics, including corporate culture, diversity, inclusion, compensation, and benefits.
We are committed to ensuring we create an environment where all associates feel valued, respected, and empowered to achieve their highest potential. Our Board of Directors and its Committees provide oversight on a broad range of human capital management topics, including corporate culture, talent, compensation, and benefits.
We provide a range of formal and informal learning programs, which are designed to help our associates continuously grow and strengthen their skills throughout their careers. See “Corporate Social Responsibility – Our Workplace” below for more information on human capital measures and objectives that we focus on in managing the business.
We provide a range of formal and informal learning programs, which are designed to help our associates continuously grow and strengthen their skills throughout their careers. Creating opportunities for employee recognition, development, and advancement is a key initiative in our talent efforts.
We continue to make significant investments to provide a seamless, end-to-end customer experience in our stores and through our digital channels, and to improve our ability to generate business through those channels.
We continue to focus on providing a seamless, end-to-end customer experience in our stores and through our digital channels, and improving our ability to generate business through those channels. We offer an integrated retailing solution that provides customers with a seamless and intuitive omnichannel vehicle shopping and purchase experience.
We have enhanced the AutoNation Express experience - our integrated retailing solution that provides customers with a seamless and intuitive omnichannel vehicle shopping and purchase experience - by continuing to build omnichannel digital capabilities that provide a personalized digital customer experience online and in-store.
We continue to build omnichannel digital capabilities that provide a personalized digital customer experience online and in-store.
In September 2023, we discontinued acquiring installment contracts from third-party independent dealers and are now exclusively focused on increasing finance penetration in our stores. We also pursue opportunities to penetrate the extensive After-Sales service market and respond to our customers’ needs by broadening the reach of our existing After-Sales network.
As a result, we are able to diversify our sources of income, generate additional profits, cash flows, and sales, and increase customer retention. We also pursue opportunities to penetrate the extensive After-Sales service market and respond to our customers’ needs by broadening the reach of our existing After-Sales network.
Name Age Position Years with AutoNation Years in Automotive Industry Michael Manley 59 Chief Executive Officer and Director 3 36 Thomas A. Szlosek 60 Executive Vice President and Chief Financial Officer 1 1 Gianluca Camplone 54 Chief Operating Officer, Precision Parts Business, and Executive Vice President, Head of Mobility, Business Strategy, and Development 2 26 C.
Szlosek 61 Executive Vice President and Chief Financial Officer 2 2 Gianluca Camplone 55 Chief Operating Officer, AutoNation Parts, and Executive Vice President, Business Development 3 27 C.
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For the year ended December 31, 2023, Premium Luxury revenue represented 38% of total revenue, Import revenue represented 29% of total revenue, and Domestic revenue represented 28% of total revenue.
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The AutoNation retail brand includes our AutoNation USA used vehicle stores, as well as AutoNation Finance, our captive auto finance company. We expect to continue to expand the AutoNation Finance loan portfolio as we increase finance penetration rates at our stores.
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We continue to expand our AutoNation USA used vehicle store footprint throughout the country. These stores play an integral part of both our long-term growth plans and the achievement of scale, scope, and density in markets to better serve and meet the needs of customers.
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During 2024, we recognized self-insured losses of $11.7 million primarily due to weather-related events. 9 Table of Contents Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate liabilities on reported and unreported claims.
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AutoNation USA stores continue to leverage the AutoNation brand, scale, exceptional used vehicle sourcing capabilities, and proven customer-centric processes to differentiate our Company and capture a larger share of the used vehicle market. The AutoNation retail brand extends to other products and services, as well.
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Recruitment and Development Our recruitment efforts include branded advertising nationwide on well-known online job websites, as well as recruitment efforts through technical schools, veteran partnerships, colleges, and universities. In addition, AutoNation provides extensive on-the-job training and opportunities for career growth.
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For additional information 4 Table of Contents regarding our capital allocation, refer to “Liquidity and Capital Resources – Capital Allocation” in Part II, Item 7 of this Form 10-K.
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Compensation and Benefits AutoNation offers a comprehensive total rewards program, including competitive salaries and compensation plans, incentive compensation potential, and health and welfare benefits.
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We believe our people are the foundation of our success as an organization at AutoNation, and we are committed to ensuring we create an environment where all associates feel valued, respected, and empowered to achieve their highest potential.
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Engagement AutoNation believes that fostering an open-door culture based on trust, respect, and open communication among team members is vital for driving long-term sustainable growth. AutoNation conducts associate engagement surveys, which allows the Company to gain comprehensive insights and establish organization priorities.
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In 2022, we launched our “Go Be Great” company-wide initiative, which characterizes the collective drive, ambition, and determination of our associates to be the best each and every day, leading the way in customer service excellence.
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More than simply listening to associates, AutoNation also provides managers with tools they need to be able to address associate feedback constructively 10 Table of Contents with actionable next steps. The combined effort of these engagement activities drives AutoNation to continuously improve the culture of the organization.
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The initiative focuses on multiple aspects of our talent efforts, including recruitment and retention in each of our markets from retail sales and service technicians to corporate positions.
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Information about our Executive Officers The following sets forth certain information regarding our executive officers as of February 14, 2025. Name Age Position Years with AutoNation Years in Automotive Industry Michael Manley 60 Chief Executive Officer and Director 4 37 Thomas A.
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AutoNation provides comprehensive benefits packages, extensive on-the-job training, and opportunities for career growth, inspiring employees to “Go Be Great.” Talent Acquisition, Development, and Retention Creating opportunities for employee recognition, mentoring, and advancement is a key initiative in our human resources efforts.
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Corporate Social Responsibility As one of the largest automotive retailers in the United States and one of America’s most admired companies, AutoNation was founded on the values of honesty, respect, and responsibility, which we believe extend to our stakeholders, which include our stockholders, our customers, our associates, and the communities in which we operate.
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AutoNation’s dedication to fundamental principles of good corporate stewardship has been a cornerstone of our business. 10 Table of Contents The Environment We are committed to managing our environmental impact and continually work to reduce it where practicable.
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The following highlights some of our environmental stewardship initiatives: • Driving Electrified : As America transitions increasingly toward electric vehicles (“EV”), we have added and continue to add EV charging capabilities at many of our locations, many of which offer EV charging free of charge to customers.
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In addition, given the growing popularity of EVs, we have also created a “Driving Electrified” section of our purchasing website to help customers shop and compare different vehicles. • Product offering : We offer a wide variety of environmentally friendly vehicles, including electric and hybrid vehicles.
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We expect our manufacturer partners to continue to enhance their offerings of these types of vehicles. • Building and maintenance : As we build new facilities and expand our AutoNation USA network, we take various measures to reduce our environmental impact, such as improving energy efficiency, reducing water consumption, sourcing materials locally, improving air quality, and pursuing alternative energy sources for our facilities.
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Our corporate headquarters building in Fort Lauderdale, Florida, is LEED Gold Certified, and is one of several LEED certified properties that we occupy. • Recycling : In addition to adhering to recycling statutes, we try to maximize our recycling efforts where practicable, whether water, oil, tire rubber, scrap metal, paper, plastic, car batteries, radiator cores, or other materials. • Stewardship : We have implemented an Environmental, Health and Safety Compliance Program, which includes training and consulting support at our dealerships and other operating entities.
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Our Communities We are committed to supporting the communities in which we operate. We encourage our associates to be active members in the communities where they live and work through volunteerism and charitable giving. Cancer touches nearly everyone and that is why supporting cancer research and treatment is so important to us.
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We have transformed our brand through our “Drive Pink” initiative. More than a charitable focus on cancer research and treatment, Drive Pink is a core element of our corporate culture and has impacted customers, associates, and our communities in meaningful ways. We fund national cancer research and treatment facilities from coast to coast through our philanthropic activities.
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Through the combined efforts of our 25,300 associates, vendors, partners, customers, and executive leadership, we have raised and donated over $40 million to support the world-class AutoNation Institute for Breast Cancer Research and Care, the Moffitt Cancer Center, the Breast Cancer Research Foundation, Cleveland Clinic, and other leading cancer facilities.
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Our presence is felt at local community-based cancer events, as teams of our associates represent AutoNation at runs, walks, and other fundraisers. Yearly, AutoNation celebrates Drive Pink Across America Day by providing our associates with opportunities to deliver thousands of “Totes for Hope” bags stuffed with comfort items for children and adults undergoing cancer care at hospitals in our markets.
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Vehicles sold at our AutoNation locations are fitted with “DRV PNK” license plate frames as a symbol of our commitment to “driving out” cancer. Millions of “DRV PNK” license plate frames have been distributed to date.
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Our Business and Our Customers We are proud to be America’s most admired automotive retailer, and we strive to create transparency and establish unparalleled trust with our customers or others with whom we do business. • Ethical standards : We have a Code of Business Ethics in place to help support our commitment to business ethics and responsibility.
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This Code describes our standards of business conduct and the steps AutoNation takes to ensure that our standards are understood and followed. Each AutoNation associate throughout the organization is expected to comply with the standards set forth in the Code.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAny security breach or event resulting in the misappropriation, loss, or other unauthorized disclosure of confidential information, whether by us directly or our third-party service providers, could damage our reputation, expose us to the risks of litigation and liability, disrupt our business, or otherwise adversely affect our results of operations.
Biggest changeFuture cybersecurity incidents or other events involving our information technology systems or those of our third-party service providers may disrupt our information systems and business operations, result in the theft, misappropriation, loss, or other unauthorized disclosure of confidential information, damage our reputation, expose us to the risks of litigation and liability, or reduce our customers’ willingness to do business with us, which could adversely affect our business, financial condition, and results of operations.
We are also investing significantly in various strategic initiatives, including the planned expansion of our AutoNation USA used vehicle stores, our AutoNation Finance business, and our AutoNation Mobile Service business.
We are also investing significantly in various strategic initiatives, including the planned expansion of our AutoNation Finance business, our AutoNation USA used vehicle stores, and our AutoNation Mobile Service business.
With respect to our indirect auto financing and origination and servicing of consumer auto finance loans through our captive finance company, we are subject to extensive governmental laws and regulations relating to finance companies that could subject us to regulatory enforcement actions, including consent orders or similar orders where we may be required to revise the practices of our captive finance company, remunerate customers, or pay fines.
With respect to our indirect auto financing and origination and servicing of consumer auto finance loans through our captive auto finance company, we are subject to extensive governmental laws and regulations relating to finance companies that could subject us to regulatory enforcement actions, including consent orders or similar orders where we may be required to revise the practices of our captive auto finance company, remunerate customers, or pay fines.
Our stores are concentrated in states and regions in the United States, including primarily Florida, Texas, and California, in which actual or threatened natural disasters and severe weather events (such as hailstorms, hurricanes, earthquakes, fires, tornadoes, snowstorms, and landslides) may disrupt our store operations, which may adversely impact our business, results of operations, financial condition, and cash flows.
Our stores are concentrated in states and regions in the United States, including primarily Florida, California, and Texas, in which actual or threatened natural disasters and severe weather events (such as hailstorms, hurricanes, earthquakes, fires, tornadoes, snowstorms, and landslides) may disrupt our store operations, which may adversely impact our business, results of operations, financial condition, and cash flows.
For example: • We may have difficulty satisfying our debt service obligations and, if we fail to comply with these requirements, an event of default could result; • We may be required to dedicate a substantial portion of our cash flow from operations to make required payments on indebtedness, thereby reducing the availability of cash flow for working capital, capital expenditures, acquisitions, strategic initiatives, investments, and other general corporate activities; • A downgrade in our credit ratings could negatively impact the interest rate payable on certain of our senior notes and could negatively impact our ability to issue, or the interest rates for, commercial paper notes; • Covenants relating to our indebtedness may limit our ability to obtain financing for working capital, capital expenditures, acquisitions, investments, originating auto loans receivable, and other general corporate activities; • Covenants relating to our indebtedness may limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; • We may be more vulnerable to the impact of economic downturns and adverse developments in our business; 21 Table of Contents • We may be placed at a competitive disadvantage against any less leveraged competitors; • Our variable interest rate debt will fluctuate with changing market conditions and, accordingly, our interest expense will increase if interest rates rise; • An increase in our leverage ratio could negatively impact the applicable margins on interest rates charged for borrowings under our revolving credit facility; and • Future share repurchases may be limited by the maximum leverage ratio and/or minimum interest coverage ratio described above.
For example: • We may have difficulty satisfying our debt service obligations and, if we fail to comply with these requirements, an event of default could result; • We may be required to dedicate a substantial portion of our cash flow from operations to make required payments on indebtedness, thereby reducing the availability of cash flow for working capital, capital expenditures, acquisitions, strategic initiatives, investments, and other general corporate activities; • A downgrade in our credit ratings could negatively impact the interest rate payable on certain of our senior notes and could negatively impact our ability to issue, or the interest rates for, commercial paper notes; • Covenants relating to our indebtedness may limit our ability to obtain financing for working capital, capital expenditures, acquisitions, investments, originating auto loans receivable, and other general corporate activities; • Covenants relating to our indebtedness may limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; • We may be more vulnerable to the impact of economic downturns and adverse developments in our business; • We may be placed at a competitive disadvantage against any less leveraged competitors; • Our variable interest rate debt will fluctuate with changing market conditions and, accordingly, our interest expense will increase if interest rates rise; • An increase in our leverage ratio could negatively impact the applicable margins on interest rates charged for borrowings under our revolving credit facility; and • Future share repurchases may be limited by the maximum leverage ratio and/or minimum interest coverage ratio described above.
All statements other than statements of historical fact, including statements that describe our objectives, plans or goals are, or may be deemed to be, forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “goal,” “target,” “project,” “plan,” “believe,” “continue,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements.
All statements other than statements of historical fact, including statements that describe our objectives, plans or goals are, or may be deemed to be, forward-looking statements. Words such as “anticipate,” “expect,” “estimate,” “intend,” “goal,” “target,” “project,” “plan,” “believe,” “continue,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements.
Further, the CFPB has supervisory authority over certain non-bank lenders, including automotive finance companies, such as our captive finance company. The CFPB can use this authority to conduct supervisory examinations or initiate enforcement actions and/or litigation to ensure compliance with various federal consumer protection laws.
Further, the CFPB has supervisory authority over certain non-bank lenders, including automotive finance companies, such as our captive auto finance company. The CFPB can use this authority to conduct supervisory examinations or initiate enforcement actions and/or litigation to ensure compliance with various federal consumer protection laws.
However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition, cash flows, and prospects. Our operations are subject to extensive governmental laws and regulations.
The results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition, cash flows, and prospects. Our operations are subject to extensive governmental laws and regulations.
Risks Related to Strategic Initiatives We are investing significantly in various strategic initiatives, including the planned expansion of our AutoNation USA stores, our AutoNation Finance business, and our AutoNation Mobile Service business, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results.
Risks Related to Strategic Initiatives We are investing significantly in various strategic initiatives, including the planned expansion of our AutoNation Finance business, our AutoNation USA used vehicle stores, and our AutoNation Mobile Service business, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results.
In addition, as the assignee of consumer loans previously originated by third-party independent dealers prior to October 2023, our captive finance company could be named as a co-defendant in litigation initiated by consumers primarily against a specific dealer.
In addition, as the assignee of consumer loans previously originated by third-party dealers prior to October 2023, our captive auto finance company could be named as a co-defendant in litigation initiated by consumers primarily against a specific dealer.
In January 2024, the FTC published the Combatting Auto Retail Scams Final Rule (“CARS Rule”), which prohibits certain automotive sales and marketing practices and establishes significant new dealer disclosure and record-keeping requirements broadly applicable throughout the car-buying process.
In January 2024, the FTC published the Combating Auto Retail Scams Final Rule (“CARS Rule”), which prohibits certain automotive sales and marketing practices and establishes significant new dealer disclosure and record-keeping requirements broadly applicable throughout the car-buying process.
These and other risks could materially adversely affect any manufacturer and impact its ability to profitably design, market, produce, or distribute new vehicles, which in turn could materially adversely affect our ability to obtain or finance our desired new vehicle inventories, our ability to take advantage of manufacturer financial assistance programs, our ability to collect in full or on a timely basis our manufacturer warranty and other receivables, and/or our ability to obtain other goods and services provided by the impacted manufacturer.
These and other risks could materially adversely affect any manufacturer and impact its ability to profitably design, market, produce, or distribute new vehicles, which in turn could materially adversely affect our ability to obtain or finance our desired new vehicle inventories, our ability to take advantage of manufacturer financial assistance programs, our ability to collect in full or on a timely basis our manufacturer warranty and other receivables, and/or our ability to obtain other goods and services provided by the 14 Table of Contents impacted manufacturer.
Economic conditions and the other factors described above may also materially adversely impact our sales of parts and 15 Table of Contents automotive repair and maintenance services and automotive finance and insurance products and our ability to approve/provide financing to customers.
Economic conditions and the other factors described above may also materially adversely impact our sales of parts and 13 Table of Contents automotive repair and maintenance services and automotive finance and insurance products and our ability to approve/provide financing to customers.
The core brands of vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2023, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
The core brands of vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2024, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
If any debt is accelerated, our liquid assets may not be sufficient to repay in full such indebtedness and our other indebtedness. Additionally, we have granted certain manufacturers the right to acquire, at fair market value, our automotive stores franchised by those manufacturers in specified circumstances in the event of our default under our debt agreements.
If any debt is accelerated, our liquid assets may not be sufficient to repay in full such indebtedness 19 Table of Contents and our other indebtedness. Additionally, we have granted certain manufacturers the right to acquire, at fair market value, our automotive stores franchised by those manufacturers in specified circumstances in the event of our default under our debt agreements.
With respect to motor vehicle sales, retail installment sales, leasing, finance and insurance products, vehicle protection products, and advertising, we are subject to various laws and regulations, the violation of which could subject us to consumer class action or other lawsuits or governmental investigations and adverse publicity, in addition to administrative, civil, or criminal sanctions.
With respect to motor vehicle sales, retail installment sales, leasing, finance and insurance products, vehicle protection products, and advertising, we are subject to various laws and regulations, the violation of which could subject us to consumer class action or other 17 Table of Contents lawsuits or governmental investigations and adverse publicity, in addition to administrative, civil, or criminal sanctions.
For example, several well-known retailers have disclosed high-profile security breaches involving sophisticated and highly targeted attacks on their company’s infrastructure or their customers’ data, which were not recognized or detected until after such retailers had been affected notwithstanding the preventative measures such retailers had in place.
For example, several well-known retailers and other large companies have disclosed high-profile security breaches involving sophisticated and highly targeted attacks on their company’s infrastructure or their customers’ data, which were not recognized or detected until after such retailers had been affected notwithstanding the preventative measures such retailers had in place.
Credit losses are an inherent risk of our auto loan portfolio, and changes in the availability or cost of financing, such as our securitized funding sources or warehouse facilities, to support the origination of auto loans receivable could adversely affect our results of 18 Table of Contents operations.
Credit losses are an inherent risk of our auto loan portfolio, and changes in the availability or cost of financing, such as our securitized funding sources or warehouse facilities, to support the origination of auto loans receivable could adversely affect our results of operations.
Furthermore, we rely on the protection of state franchise laws in the states in 17 Table of Contents which we operate and if those laws are repealed or weakened, our framework, franchise, and related agreements may become more susceptible to termination, non-renewal, or renegotiation.
Furthermore, we rely on the protection of state franchise laws in the states in which we operate and if those laws are repealed or weakened, our framework, franchise, and related agreements may become more susceptible to termination, non-renewal, or renegotiation.
Our captive finance company may also be involved in litigation with dealers or other third-party service providers, which could materially adversely impact our business, operating results, and prospects. With respect to employment practices, we are subject to various laws and 19 Table of Contents regulations, including complex federal, state, and local wage and hour and anti-discrimination laws.
Our captive auto finance company may also be involved in litigation with dealers or other third-party service providers, which could materially adversely impact our business, operating results, and prospects. With respect to employment practices, we are subject to various laws and regulations, including complex federal, state, and local wage and hour and anti-discrimination laws.
In addition, vehicle recall campaigns could materially adversely affect our business, results of operations, and financial condition. 16 Table of Contents Our business could be materially adversely impacted by the bankruptcy of a major vehicle manufacturer or related lender.
In addition, vehicle recall campaigns could materially adversely affect our business, results of operations, and financial condition. Our business could be materially adversely impacted by the bankruptcy of a major vehicle manufacturer or related lender.
In addition, our net new vehicle inventory carrying expense (new vehicle floorplan interest expense net of floorplan assistance that we receive from automotive manufacturers) may increase due to changes in interest rates, inventory levels, and manufacturer assistance.
In addition, our net new vehicle inventory carrying expense (new vehicle floorplan interest expense net of floorplan assistance that we receive from 20 Table of Contents automotive manufacturers) may increase due to changes in interest rates, inventory levels, and manufacturer assistance.
In addition, an isolated business incident at a single store could materially adversely affect our other stores, retail brands, reputation, and sales channels, particularly if such incident results in adverse publicity, governmental investigations, or litigation.
In addition, an isolated business incident at a single store could materially adversely affect our other stores, retail brands, reputation, and sales channels, particularly if such incident results in adverse publicity, governmental investigations, or 16 Table of Contents litigation.
In addition, future share repurchases and fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock. Based on filings made with the SEC through February 14, 2024, William H.
In addition, future share repurchases and fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock. Based on filings made with the SEC through February 12, 2025, William H.
Approximately 15.6 million, 13.9 million, and 15.1 million new vehicles, including retail and fleet vehicles, were sold in the United States in 2023, 2022, and 2021, respectively. Our performance may differ from the performance of the automotive retail industry due to particular economic conditions and other factors in the geographic markets in which we operate.
Approximately 16.0 million, 15.6 million, and 13.9 million new vehicles, including retail and fleet vehicles, were sold in the United States in 2024, 2023, and 2022, respectively. Our performance may differ from the performance of the automotive retail industry due to particular economic conditions and other factors in the geographic markets in which we operate.
Gates III beneficially owns approximately 23.7% of the outstanding shares of our common stock, through holdings by Cascade Investment, L.L.C. (“Cascade”), which is solely owned by Mr. Gates.
Gates III beneficially owns approximately 18.1% of the outstanding shares of our common stock, through holdings by Cascade Investment, L.L.C. (“Cascade”), which is solely owned by Mr. Gates.
In addition, natural disasters and adverse weather events, including the effects of climate change, may adversely impact new vehicle production and the global automotive supply chain, which in turn could materially adversely impact our business, results of operations, financial conditions, and cash flows.
In addition, natural disasters and adverse weather events, including the effects of climate change, may adversely impact new vehicle production and the global automotive supply chain, which in turn could materially adversely impact our business, results of operations, financial conditions, and cash flows. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
There may be future issuances of identical or similar equity 22 Table of Contents securities by the same issuer that would result in observable price changes that could result in upward or downward adjustments to this equity investment. A material downward adjustment to or impairment of this equity investment could adversely impact our results of operations and financial condition.
There may be future issuances of identical or similar equity securities by the same issuer that would result in observable price changes that could result in upward or downward adjustments to these equity investments. A material downward adjustment to or impairment of these equity investments could adversely impact our results of operations and financial condition.
We have elected to measure our minority equity investment that does not have a readily determinable fair value using a measurement alternative permitted by accounting standards, and we recorded the equity investment at cost to be subsequently adjusted for observable price changes or impairment, if any.
We have elected to measure our minority equity investments that do not have readily determinable fair values using a measurement alternative permitted by accounting standards, and we recorded these equity investments at cost to be subsequently adjusted for observable price changes or impairment, if any.
Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding our strategic acquisitions, initiatives, partnerships, or investments, including AutoNation USA, AutoNation Finance, and AutoNation Mobile Service; statements regarding our investments in digital and online capabilities and mobility solutions; statements regarding our expectations for the future performance of our business and the automotive retail industry; as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding our strategic initiatives, partnerships, or investments, including AutoNation Finance, statements regarding our expectations for the future performance of our business and the automotive retail industry, including during 2025, statements regarding the impact of the CDK Global (“CDK”) outage on our business and the availability of insurance or other sources of recovery, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Based on filings made with the SEC through February 14, 2024, ESL Investments, Inc. together with certain of its investment affiliates (collectively, “ESL”) beneficially owns approximately 10.6% of the outstanding shares of our common stock.
Based on filings made with the SEC through February 12, 2025, ESL Investments, Inc. together with certain of its investment affiliates (collectively, “ESL”) beneficially owns approximately 8.3% of the outstanding shares of our common stock.
As of December 31, 2023, we had $4.0 billion of total non-vehicle long-term debt, $3.4 billion of vehicle floorplan financing, and $209.4 million of non-recourse debt under our warehouse facilities. Our substantial indebtedness could have important consequences.
As of December 31, 2024, we had $3.8 billion of total non-vehicle long-term debt, $3.7 billion of vehicle floorplan financing, and $801.5 million of non-recourse debt under our warehouse facilities. Our substantial indebtedness could have important consequences.
Additionally, any such bankruptcy may result in us being required to incur impairment charges with respect to the inventory, fixed assets, right-of-use assets, and intangible assets related to certain franchises, which could adversely impact our results of operations and financial condition. Further, we rely on various third-party suppliers for key products and services.
Additionally, any such bankruptcy may result in us being required to incur impairment charges with respect to the inventory, fixed assets, right-of-use assets, and intangible assets related to certain franchises, which could adversely impact our results of operations and financial condition.
See Note 19 of the Notes to Consolidated Financial Statements for more information. Our minority equity investments with readily determinable fair values are required to be measured at fair value each reporting period, which could adversely impact our results of operations and financial condition.
Our minority equity investments with readily determinable fair values are required to be measured at fair value each reporting period, which could adversely impact our results of operations and financial condition.
To the extent that the CARS Rule ultimately becomes effective, it would introduce new administrative burdens that would likely increase our costs and could potentially expose us to significant damages, other penalties, and/or adverse publicity.
To the extent that the CARS Rule ultimately becomes effective or that states enact similar requirements, we may be subject to new administrative burdens that would likely increase our costs and could expose us to significant damages, other penalties, and/or adverse publicity.
The carrying value of our minority equity investment that does not have a readily determinable fair value is required to be adjusted for observable price changes or impairments, both of which could adversely impact our results of operations and financial condition.
The carrying values of our minority equity investments that do not have readily determinable fair values are required to be adjusted for observable price changes or impairments, both of which could adversely impact our results of operations and financial condition. Our minority equity investments with readily determinable fair values are required to be measured at fair value each reporting period.
Regulation from the CFPB, other federal agencies, or state agencies could lead to significant changes in the manner that dealers are compensated for arranging customer financing, and while it is difficult to predict how any such changes might impact us, any adverse changes could have a material adverse impact on our finance and insurance business and results of operations.
Regulation from the CFPB, other federal agencies, or state agencies could lead to significant changes in the manner that dealers are compensated for arranging customer financing, and while it is difficult to predict how any such changes might impact us, any adverse changes could have a material adverse impact on our finance and insurance business and results of operations. 18 Table of Contents Risks Related to Cybersecurity We depend on information technology for our business and are subject to risks related to cybersecurity threats and incidents, including those affecting our third-party suppliers and other service providers.
A material decrease in the fair values of these equity investments could adversely impact our results of operations and financial condition.
Changes in the fair values of the underlying equity securities could result in unrealized gains or losses related to these investments. A material decrease in the fair values of these equity investments could adversely impact our results of operations and financial condition.
Risks Related to Cybersecurity A failure of our information systems or any security breach or unauthorized disclosure of confidential information could have a material adverse effect on our business. Our business is dependent upon the efficient operation of our information systems.
A failure of our information systems or any cybersecurity breaches or unauthorized disclosure of confidential information could have a material adverse effect on our business, disrupt our business, and adversely impact our reputation and results of operations. Our business is dependent upon the efficient operation of our information systems.
As a result, ESL may also have the ability to exert substantial influence over actions to be taken or approved by our stockholders, including the election of directors and any transactions involving a change of control.
As a result, ESL may also have the ability to exert substantial influence over actions to be taken or approved by our stockholders, including the election of directors and any transactions involving a change of control. 21 Table of Contents In the future, our largest stockholders may acquire or dispose of shares of our common stock and thereby increase or decrease their ownership stake in us.
Our framework, franchise, and related agreements also grant the manufacturer the right to terminate or compel us to sell our franchise for a variety of reasons (including uncured performance deficiencies, any unapproved change of ownership or management, or any unapproved transfer of franchise rights or impairment of financial standing or failure to meet capital requirements), subject to applicable state franchise laws.
The establishment or relocation of franchises in our markets could have a material adverse effect on the financial condition, results of operations, cash flows, and prospects of our stores in the market in which the franchise action is taken. 15 Table of Contents Our framework, franchise, and related agreements also grant the manufacturer the right to terminate or compel us to sell our franchise for a variety of reasons (including uncured performance deficiencies, any unapproved change of ownership or management, or any unapproved transfer of franchise rights or impairment of financial standing or failure to meet capital requirements), subject to applicable state franchise laws.
If those suppliers fail to deliver products or services on a timely basis and at reasonable prices for any reason, we could face difficulties operating our business and our results of operations and financial condition could be adversely impacted.
If our suppliers fail to deliver products or services on a timely basis and at reasonable prices for any reason, or if the third-parties’ services are interrupted, disabled, sub-standard, or otherwise deficient, as they have been or may be in the future, our business continuity or recovery programs may not be sufficient to mitigate the harm that may result, and we could face difficulties operating our business and suffer reputational harm, and our results of operations and financial condition could be adversely impacted.
In the aggregate, based on filings made with the SEC through February 14, 2024, William H. Gates III and ESL beneficially own approximately 34.3% of our outstanding shares. Future share repurchases by the Company, together with any future share purchases by our affiliates, will reduce our “public float” (shares owned by non-affiliate stockholders and available for trading).
Future share repurchases by the Company, together with any future share purchases by our affiliates, will reduce our “public float” (shares owned by non-affiliate stockholders and available for trading).
Despite the security measures we have in place and any additional measures we may implement in the future, our facilities and systems, and those of our third-party service providers, could experience security breaches, computer viruses, lost or misplaced data, programming errors, human errors, acts of vandalism, or other events.
Additionally, we collect, process, and retain sensitive and confidential customer information in the normal course of our business. Our facilities and systems could experience security breaches, malicious software (malware, ransomware, and viruses), lost or misplaced data, programming errors, human errors, acts of vandalism, or other events.
Manufacturers also have the right to establish new franchises or relocate existing franchises, subject to applicable state franchise laws. The establishment or relocation of franchises in our markets could have a material adverse effect on the financial condition, results of operations, cash flows, and prospects of our stores in the market in which the franchise action is taken.
Manufacturers also have the right to establish new franchises or relocate existing franchises, subject to applicable state franchise laws.
We are subject to a concentration of risk in the event of adverse events or financial distress, including bankruptcy, impacting one or more of these manufacturers.
As a result, we are subject to a concentration of risk, and our business could be materially adversely impacted by the financial distress, including bankruptcy, of or other adverse event related to a major vehicle manufacturer or related lender or supplier.
In the future, our largest stockholders may acquire or dispose of shares of our common stock and thereby increase or decrease their ownership stake in us. Significant fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock.
Significant fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock. In the aggregate, based on filings made with the SEC through February 12, 2025, William H. Gates III and ESL beneficially own approximately 26.4% of our outstanding shares.
Removed
We do not believe that the ultimate resolution of these matters will have a material adverse effect on our business, results of operations, financial condition, cash flows, or prospects.
Added
Further, we rely on various third-party suppliers for key products and services to support our business, including CDK, the provider of our dealer management system (“DMS”), which supports our dealership operations, including our sales, service, inventory, customer relationship management, and accounting functions.
Removed
The FTC has since stayed the CARS Rule’s original July 30, 2024 effective date, pending resolution of a judicial challenge to the Rule. The ultimate probability of success, and the timing of the resolution of, the judicial challenge or other potential challenges to the CARS Rule’s implementation is uncertain.
Added
Outsourcing to third-party suppliers reduces our direct control over the services rendered, as we do not have control over their business operations, governance, or compliance systems, practices, and procedures.
Removed
Additionally, we collect, process, and retain sensitive and confidential customer information in the normal course of our 20 Table of Contents business.
Added
See the risk factor, “We depend on information technology for our business and are subject to risks related to cybersecurity threats and incidents, including those affecting our third-party suppliers and other service providers.
Removed
Our minority equity investments with readily determinable fair values are required to be measured at fair value each reporting period. Changes in the fair values of the underlying equity securities could result in unrealized gains or losses related to these investments.
Added
A failure of our information systems or any cybersecurity breaches or unauthorized disclosure of confidential information could have a material adverse effect on our business, disrupt our business, and adversely impact our reputation and results of operations” below for additional information on the CDK cyber incident in June 2024.
Added
The Fifth Circuit Court of Appeals has recently vacated the CARS Rule on procedural grounds, but the FTC could appeal such ruling or take other actions to reissue the CARS Rule in a manner that conforms with the Fifth Circuit’s judgment.
Added
In addition, we rely on third-party service providers to support our operations, including CDK, the provider of our DMS. These third-party service providers, with whom we may share data, are subject to similar risks as we are relating to cybersecurity, privacy violations, business interruption, and systems, as well as employee failures.
Added
We do not have control over third-party service providers’ business operations, governance, or compliance systems, practices, and procedures, and management of multiple third-party service providers increases our operational complexity.
Added
Third-parties’ services have been and may in the future be interrupted, disabled, sub-standard, or otherwise deficient, including as a result of a cybersecurity incident, and we have in the past incurred, and may in the future incur, additional costs as a result, including disruption to our information systems and business operations and reputational harm.
Added
For example, in June 2024, we were notified by CDK that it was experiencing a cyber incident impacting its systems, including the systems necessary to support our DMS, which supports our dealership operations, including our sales, service, inventory, customer relationship management, and accounting functions (“Core Functions”).
Added
The incident resulted in outages of our DMS and Core Functions (the “CDK outage”), causing disruption and adverse impacts to our business, including our productivity. Access to our DMS and Core Functions was restored by the end of June 2024.
Added
Certain ancillary systems and integrations, such as those that help automate ordering, scheduling, payment, sales, and reporting processes, were restored by the end of July with residual impacts resolved by the end of the third quarter 2024.
Added
See “Results of Operations” in Part II, Item 7 of this Form 10-K for a discussion on the financial impact of the CDK outage to our 2024 results.
Added
During 2024, we recorded non-cash impairment charges of $12.5 million associated with franchise rights at certain of our stores. See Note 19 of the Notes to Consolidated Financial Statements for more information.
Added
During 2024, we identified an observable transaction for the issuance of similar equity securities of the same issuer of one of our equity investments and recorded a downward adjustment to this equity investment of $8.4 million based on the observable price change.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

5 edited+1 added−1 removed9 unchanged
Biggest changeThis plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents. 24 Table of Contents Our CISO regularly informs our Chief Executive Officer and Chief Financial Officer of all aspects related to cybersecurity risks and incidents.
Biggest changeIn the event of a cybersecurity incident, our CISO is equipped with a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents. Our CISO regularly informs our Chief Executive Officer and Chief Financial Officer of all aspects related to cybersecurity risks and incidents.
The Audit Committee is composed of independent directors with diverse expertise including, risk management, technology, and finance, equipping them to oversee cybersecurity risks effectively. Our Chief Information Security Officer (“CISO”) plays a pivotal role in informing the Audit Committee on cybersecurity risks. He provides comprehensive briefings to the Audit Committee on a quarterly basis or as needed.
The Audit Committee is composed of independent directors with diverse expertise, including risk management, technology, and finance, equipping them to oversee cybersecurity risks effectively. Our Chief Information Security Officer (“CISO”) plays a pivotal role in informing the Audit Committee on cybersecurity risks. He provides comprehensive briefings to the Audit Committee on a quarterly basis or more frequently as needed.
Despite our efforts to ensure the integrity of our computer systems, software, networks, and other technology assets, we may not be able to anticipate, detect, or recognize threats to our systems and assets, or to implement effective preventive measures against all cyber threats, especially because the techniques used are increasingly sophisticated, change frequently, are complex, and are often not recognized until launched.
Despite our efforts to ensure the integrity of our computer systems, software, networks, and other 22 Table of Contents technology assets, we may not be able to anticipate, detect, or recognize threats to our systems and assets, or to implement effective preventive measures against all cyber threats, especially because the techniques used are increasingly sophisticated, change frequently, are complex, and are often not recognized until launched.
Our CISO is responsible for assessing, monitoring, and managing our cybersecurity risks. With over 25 years of experience in the field of cybersecurity, including extensive experience as an enterprise CISO, his in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies.
Our CISO is responsible for assessing, monitoring, and managing our cybersecurity risks. With nearly three decades of experience in the field of cybersecurity, including extensive experience as an enterprise CISO, his in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies.
See the risk factor “ A failure of our information systems or any security breach or unauthorized disclosure of confidential information could have a material adverse effect on our business ” in Part I, Item 1A of this Form 10-K.
A failure of our information systems or any cybersecurity breaches or unauthorized disclosure of confidential information could have a material adverse effect on our business, disrupt our business, and adversely impact our reputation and results of operations. ” in Part I, Item 1A of this Form 10-K.
Removed
In the event of a cybersecurity incident, our CISO is equipped with a well-defined incident response plan.
Added
See the risk factor “ We depend on information technology for our business and are subject to risks related to cybersecurity threats and incidents, including those affecting our third-party suppliers and other service providers.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed2 unchanged
Biggest changeThese facilities are located in the following 21 states: Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, Minnesota, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, South Carolina, Tennessee, Texas, Virginia, and Washington.
Biggest changeThese facilities are located in the following 20 states: Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, South Carolina, Tennessee, Texas, Virginia, and Washington.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+1 added−1 removed3 unchanged
Biggest changeIn 2023, all of the shares that we repurchased were repurchased under our stock repurchase program. As of February 14, 2024, $320.8 million remained available under our stock repurchase limit.
Biggest changeThe most recent authorization by the Board of Directors was announced on April 26, 2024 for repurchases of up to an additional $1.0 billion. In 2024, all of the shares that we repurchased were repurchased under our stock repurchase program. As of February 12, 2025, $860.8 million remained available under our stock repurchase limit.
We do not currently anticipate paying cash dividends for the foreseeable future. Issuer Purchases of Equity Securities The table below sets forth information with respect to shares of common stock repurchased by AutoNation, Inc. during the three and twelve months ended December 31, 2023.
We do not currently anticipate paying cash dividends for the foreseeable future. Issuer Purchases of Equity Securities The table below sets forth information with respect to shares of common stock repurchased by AutoNation, Inc. during the three and twelve months ended December 31, 2024.
The graph and table assume that $100 was invested on December 31, 2018 in each of our common stock, the S&P 500 Index, and the Public Auto Retail Peer Group and that any dividends were reinvested.
The graph and table assume that $100 was invested on December 31, 2019 in each of our common stock, the S&P 500 Index, and the Public Auto Retail Peer Group and that any dividends were reinvested.
Our stock repurchase program does not have an expiration date. 26 Table of Contents Stock Performance Graph The following graph and table compare the cumulative total stockholder return on our common stock from December 31, 2018 through December 31, 2023 with the performance of: (i) the Standard & Poor’s (“S&P”) 500 Index and (ii) a self-constructed peer group consisting of other public companies in the automotive retail market, referred to as the “Public Auto Retail Peer Group.” The Public Auto Retail Peer Group consists of Asbury Automotive Group, Inc., CarMax, Inc., Group 1 Automotive, Inc., Lithia Motors, Inc., Penske Automotive Group, Inc., and Sonic Automotive, Inc., and these companies are weighted by market capitalization.
Our stock repurchase program does not have an expiration date. 25 Table of Contents Stock Performance Graph The following graph and table compare the cumulative total stockholder return on our common stock from December 31, 2019 through December 31, 2024 with the performance of: (i) the Standard & Poor’s (“S&P”) 500 Index and (ii) a self-constructed peer group consisting of other public companies in the automotive retail market, referred to as the “Public Auto Retail Peer Group.” The Public Auto Retail Peer Group consists of Asbury Automotive Group, Inc., CarMax, Inc., Group 1 Automotive, Inc., Lithia Motors, Inc., Penske Automotive Group, Inc., and Sonic Automotive, Inc., and these companies are weighted by market capitalization.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information, Holders, and Dividends Our common stock is traded on the New York Stock Exchange under the symbol “AN.” As of February 14, 2024, there were 1,058 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information, Holders, and Dividends Our common stock is traded on the New York Stock Exchange under the symbol “AN.” As of February 12, 2025, there were 976 holders of record of our common stock.
Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in millions) (1) October 1, 2023 – October 31, 2023 528,161 $ 128.70 528,161 $ 404.0 November 1, 2023 – November 30, 2023 356,492 $ 133.36 356,492 $ 356.4 December 1, 2023 – December 31, 2023 265,024 $ 134.64 265,024 $ 320.8 Total for three months ended December 31, 2023 1,149,677 1,149,677 Total for twelve months ended December 31, 2023 6,412,129 6,412,129 (1) Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit.
Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in millions) (1) October 1, 2024 – October 31, 2024 — $ — — $ 965.1 November 1, 2024 – November 30, 2024 369,900 $ 163.09 369,900 $ 904.8 December 1, 2024 – December 31, 2024 257,748 $ 170.82 257,748 $ 860.8 Total for three months ended December 31, 2024 627,648 627,648 Total for twelve months ended December 31, 2024 2,859,655 2,859,655 (1) Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit.
Removed
All rights reserved. 12/2018 12/2019 12/2020 12/2021 12/2022 12/2023 AutoNation Inc. 100.00 136.22 195.49 327.31 300.56 420.67 S&P 500 100.00 131.49 155.68 200.37 164.08 207.21 Public Auto Retail Peer Group 100.00 150.43 189.02 255.33 184.91 258.16 27 Table of Contents
Added
All rights reserved. 12/2019 12/2020 12/2021 12/2022 12/2023 12/2024 AutoNation Inc. 100.00 143.51 240.28 220.65 308.82 349.25 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 Public Auto Retail Peer Group 100.00 125.66 169.74 122.92 171.62 186.35 ITEM 6. [RESERVED] 26 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

107 edited+59 added−45 removed35 unchanged
Biggest changeYears Ended December 31, 2023 vs. 2022 2022 vs. 2021 ($ in millions) 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Revenue: Domestic $ 7,573.2 $ 7,987.5 $ (414.3) (5.2) $ 7,959.9 $ 27.6 0.3 Import 7,880.9 7,690.3 190.6 2.5 7,798.5 (108.2) (1.4) Premium Luxury 10,266.4 10,278.1 (11.7) (0.1) 9,229.9 1,048.2 11.4 Total 25,720.5 25,955.9 (235.4) (0.9) 24,988.3 967.6 3.9 Corporate and other 1,228.4 1,029.1 199.3 19.4 855.7 173.4 20.3 Total consolidated revenue $ 26,948.9 $ 26,985.0 $ (36.1) (0.1) $ 25,844.0 $ 1,141.0 4.4 Segment income (1) : Domestic $ 415.4 $ 565.3 $ (149.9) (26.5) $ 595.8 $ (30.5) (5.1) Import 635.0 734.2 (99.2) (13.5) 714.7 19.5 2.7 Premium Luxury 836.5 969.1 (132.6) (13.7) 837.4 131.7 15.7 Total 1,886.9 2,268.6 (381.7) (16.8) 2,147.9 120.7 5.6 Corporate and other (379.7) (285.5) (94.2) (270.8) (14.7) Floorplan interest expense 144.7 41.4 (103.3) 25.7 (15.7) Operating income $ 1,651.9 $ 2,024.5 $ (372.6) (18.4) $ 1,902.8 $ 121.7 6.4 Retail new vehicle unit sales: Domestic 67,471 66,375 1,096 1.7 76,211 (9,836) (12.9) Import 108,068 95,886 12,182 12.7 118,863 (22,977) (19.3) Premium Luxury 69,007 67,710 1,297 1.9 67,329 381 0.6 244,546 229,971 14,575 6.3 262,403 (32,432) (12.4) Retail used vehicle unit sales: Domestic 84,552 97,642 (13,090) (13.4) 105,031 (7,389) (7.0) Import 91,146 100,131 (8,985) (9.0) 103,418 (3,287) (3.2) Premium Luxury 75,334 83,858 (8,524) (10.2) 83,447 411 0.5 Other 22,987 18,175 4,812 12,468 5,707 274,019 299,806 (25,787) (8.6) 304,364 (4,558) (1.5) (1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. 42 Table of Contents Domestic The Domestic segment operating results included the following: Years Ended December 31, 2023 vs. 2022 2022 vs. 2021 ($ in millions) 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 3,525.0 $ 3,409.1 $ 115.9 3.4 $ 3,601.8 $ (192.7) (5.4) Used vehicle 2,428.4 3,022.3 (593.9) (19.7) 2,875.0 147.3 5.1 Parts and service 1,184.7 1,092.7 92.0 8.4 1,007.6 85.1 8.4 Finance and insurance, net 432.0 460.3 (28.3) (6.1) 469.1 (8.8) (1.9) Other 3.1 3.1 — 6.4 (3.3) Total Revenue $ 7,573.2 $ 7,987.5 $ (414.3) (5.2) $ 7,959.9 $ 27.6 0.3 Segment income $ 415.4 $ 565.3 $ (149.9) (26.5) $ 595.8 $ (30.5) (5.1) Retail new vehicle unit sales 67,471 66,375 1,096 1.7 76,211 (9,836) (12.9) Retail used vehicle unit sales 84,552 97,642 (13,090) (13.4) 105,031 (7,389) (7.0) 2023 compared to 2022 Domestic revenue decreased during 2023, as compared to 2022, primarily due to decreases in used vehicle unit volume and used vehicle revenue PVR.
Biggest changeYears Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Revenue: Domestic $ 7,140.3 $ 7,573.2 $ (432.9) (5.7) $ 7,987.5 $ (414.3) (5.2) Import 8,156.9 7,880.9 276.0 3.5 7,690.3 190.6 2.5 Premium Luxury 10,139.9 10,266.4 (126.5) (1.2) 10,278.1 (11.7) (0.1) Total Franchised Dealerships 25,437.1 25,720.5 (283.4) (1.1) 25,955.9 (235.4) (0.9) Corporate and other 1,328.3 1,228.4 99.9 8.1 1,029.1 199.3 19.4 Total consolidated revenue $ 26,765.4 $ 26,948.9 $ (183.5) (0.7) $ 26,985.0 $ (36.1) (0.1) Segment income (1) : Domestic $ 254.9 $ 415.4 $ (160.5) (38.6) $ 565.3 $ (149.9) (26.5) Import 476.6 635.0 (158.4) (24.9) 734.2 (99.2) (13.5) Premium Luxury 675.7 836.5 (160.8) (19.2) 969.1 (132.6) (13.7) Total Franchised Dealerships 1,407.2 1,886.9 (479.7) (25.4) 2,268.6 (381.7) (16.8) AutoNation Finance income (loss) (9.3) (13.9) 4.6 (37.6) 23.7 Corporate and other (2) (311.3) (365.8) 54.5 (247.9) (117.9) Floorplan interest expense 218.9 144.7 (74.2) 41.4 (103.3) Operating income $ 1,305.5 $ 1,651.9 $ (346.4) (21.0) $ 2,024.5 $ (372.6) (18.4) Retail new vehicle unit sales: Domestic 69,268 67,471 1,797 2.7 66,375 1,096 1.7 Import 116,242 108,068 8,174 7.6 95,886 12,182 12.7 Premium Luxury 69,205 69,007 198 0.3 67,710 1,297 1.9 254,715 244,546 10,169 4.2 229,971 14,575 6.3 Retail used vehicle unit sales: Domestic 74,851 84,552 (9,701) (11.5) 97,642 (13,090) (13.4) Import 90,761 91,146 (385) (0.4) 100,131 (8,985) (9.0) Premium Luxury 73,435 75,334 (1,899) (2.5) 83,858 (8,524) (10.2) Other 26,861 22,987 3,874 16.9 18,175 4,812 26.5 265,908 274,019 (8,111) (3.0) 299,806 (25,787) (8.6) (1) Segment income for the Domestic, Import, and Premium Luxury reportable segments is a non-GAAP measure and is defined as operating income less floorplan interest expense.
Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Hyundai, Subaru, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Audi, Lexus, and Jaguar Land Rover.
Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Hyundai, Subaru, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover.
A downgrade in our credit ratings could negatively impact the interest rate payable on our 3.5% Senior Notes, 4.5% Senior Notes, 3.8% Senior Notes, and 4.75% Senior Notes and could negatively impact our ability to issue, or the interest rates for, commercial paper notes.
A downgrade in our credit ratings could negatively impact the interest rate payable on our 4.5% Senior Notes, 3.8% Senior Notes, and 4.75% Senior Notes and could negatively impact our ability to issue, or the interest rates for, commercial paper notes.
All statements other than statements of historical fact, including statements that describe our objectives, plans or goals are, or may be deemed to be, forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “goal,” “target,” “project,” “plan,” “believe,” “continue,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements.
All statements other than statements of historical fact, including statements that describe our objectives, plans or goals are, or may be deemed to be, forward-looking statements. Words such as “anticipate,” “expect,” “estimate,” “intend,” “goal,” “target,” “project,” “plan,” “believe,” “continue,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements.
In addition, we rely on various third-party suppliers for key products and services. 56 Table of Contents • We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores. • We are investing significantly in various strategic initiatives, including the planned expansion of our AutoNation USA stores, our AutoNation Finance business, and our AutoNation Mobile Service business, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results. • If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that damage our retail brands, reputation, or sales channels, our business and financial results may be harmed. • We are subject to various risks associated with originating and servicing auto finance loans through indirect lending to customers, any of which could have an adverse effect on our business. • New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects. • We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects . • Our operations are subject to extensive governmental laws and regulations.
In addition, we rely on various third-party suppliers for key products and services. 55 Table of Contents • We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores. • We are investing significantly in various strategic initiatives, including the planned expansion of our AutoNation Finance business, our AutoNation USA used vehicle stores, and our AutoNation Mobile Service business, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results. • If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that damage our retail brands, reputation, or sales channels, our business and financial results may be harmed. • We are subject to various risks associated with originating and servicing auto finance loans through indirect lending to customers, any of which could have an adverse effect on our business. • New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects. • We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects . • Our operations are subject to extensive governmental laws and regulations.
New vehicle gross profit was adversely impacted by a decrease in gross profit per vehicle retailed (“PVR”) resulting from increasing supply and availability of new vehicle inventory, which has resulted in moderation of pricing and margins.
New vehicle gross profit was adversely impacted by a decrease in gross profit per vehicle retailed (“PVR”) resulting from increasing supply and availability of new vehicle inventory, which has resulted in moderation of margins.
The amount available to be borrowed under this revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit. As further discussed in Note 13 of the Notes to Consolidated Financial Statements, there are various tax matters where the ultimate resolution may result in us owing additional tax payments.
The amount available to be borrowed under this revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit. As further discussed in Note 14 of the Notes to Consolidated Financial Statements, there are various tax matters where the ultimate resolution may result in us owing additional tax payments.
In the case of payments due upon the maturity of our debt instruments, we currently expect to be able to refinance such instruments in the normal course of business. 55 Table of Contents The table above excludes the non-recourse debt that relates to auto loans receivable funded through asset-backed term securitizations and/or warehouse facilities.
In the case of payments due upon the maturity of our debt instruments, we currently expect to be able to refinance such instruments in the normal course of business. 54 Table of Contents The table above excludes the non-recourse debt that relates to auto loans receivable funded through asset-backed term securitizations and/or warehouse facilities.
Additionally, an increase in our leverage ratio could negatively impact the interest rates charged for borrowings under our revolving credit facility. See Note 10 of the Notes to Consolidated Financial Statements for more information on our non-vehicle long-term debt, commercial paper, and non-recourse debt.
Additionally, an increase in our leverage ratio could negatively impact the interest rates charged for borrowings under our revolving credit facility. See Note 11 of the Notes to Consolidated Financial Statements for more information on our non-vehicle long-term debt, commercial paper, and non-recourse debt.
The core brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2023, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
The core brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2024, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
Therefore, the amounts presented in the year 2022 column that is being compared to the year 2023 column may differ from the amounts presented in the year 2022 column that is being compared to the year 2021 column. We believe the presentation of this information provides a meaningful comparison of period-over-period results of our operations.
Therefore, the amounts presented in the year 2023 column that is being compared to the year 2024 column may differ from the amounts presented in the year 2023 column that is being compared to the year 2022 column. We believe the presentation of this information provides a meaningful comparison of period-over-period results of our operations.
The specific terms of the leverage and interest coverage ratios can be found in our amended and restated credit agreement, which is filed with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. 52 Table of Contents As of December 31, 2023, we were in compliance with the covenants under our credit agreement and the indentures for our senior unsecured notes.
The specific terms of the leverage and interest coverage ratios can be found in our amended and restated credit agreement, which is filed with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. 51 Table of Contents As of December 31, 2024, we were in compliance with the covenants under our credit agreement and the indentures for our senior unsecured notes.
Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables. See Note 6 of the Notes to Consolidated Financial Statements for more information on our vehicle floorplan payable.
Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables. See Note 7 of the Notes to Consolidated Financial Statements for more information on our vehicle floorplan payable.
Off-Balance Sheet Arrangements As of December 31, 2023, we did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
Off-Balance Sheet Arrangements As of December 31, 2024, we did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
We monitor our used vehicle inventory values as compared to net realizable values. Typically, used vehicles that are not sold on a retail basis are sold at wholesale auctions. Our used vehicle inventory balance was net of cumulative write-downs of $12.2 million at December 31, 2023, and $7.4 million at December 31, 2022.
We monitor our used vehicle inventory values as compared to net realizable values. Typically, used vehicles that are not sold on a retail basis are sold at wholesale auctions. Our used vehicle inventory balance was net of cumulative write-downs of $7.8 million at December 31, 2024, and $12.2 million at December 31, 2023.
GAAP”), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts 29 Table of Contents of revenue and expenses during the reporting period.
GAAP”), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period.
Our parts, accessories, and other inventory balance was net of cumulative write-downs of $7.8 million at December 31, 2023, and $7.4 million at December 31, 2022. Critical Accounting Estimates We prepare our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S.
Our parts, accessories, and other inventory balance was net of cumulative write-downs of $8.3 million at December 31, 2024, and $7.8 million at December 31, 2023. Critical Accounting Estimates We prepare our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S.
(7) Our estimated self-insurance obligations are based on management estimates and actuarial calculations. Although these obligations do not have scheduled maturities, the timing of future payments is estimated based on historical patterns. (8) Primarily represents purchase orders and contracts in connection with real estate construction projects and information technology and communication systems.
(7) Our estimated self-insurance obligations are based on management estimates and actuarial calculations. Although these obligations do not have scheduled maturities, the timing of future payments is estimated based on historical patterns. (8) Primarily represents purchase orders and contracts in connection with real estate construction projects and information technology and communication systems, as well as acquisition-related commitments.
(2) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. 32 Table of Contents Years Ended December 31, 2023 (%) 2022 (%) 2021 (%) Revenue mix percentages: New vehicle 47.4 43.6 46.7 Used vehicle 30.4 35.8 33.4 Parts and service 16.8 15.2 14.3 Finance and insurance, net 5.3 5.3 5.4 Other 0.1 0.1 0.2 Total 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 20.7 26.0 24.3 Used vehicle 9.9 10.5 13.9 Parts and service 41.7 36.1 33.8 Finance and insurance 27.6 27.3 28.0 Other 0.1 0.1 — Total 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 8.3 11.6 9.9 Used vehicle-retail 6.5 6.0 7.7 Parts and service 47.2 46.3 45.1 Total 19.0 19.5 19.2 Selling, general, and administrative expenses 12.1 11.2 11.1 Operating income 6.1 7.5 7.4 Other operating items as a percentage of total gross profit: Selling, general, and administrative expenses 63.4 57.5 58.1 Operating income 32.2 38.4 38.4 December 31, 2023 2022 Days supply: New vehicle (industry standard of selling days) 36 days 19 days Used vehicle (trailing calendar month days) 39 days 31 days 33 Table of Contents Same Store Operating Data We have presented below our operating results on a same store basis to reflect our internal performance.
(2) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. 31 Table of Contents Years Ended December 31, 2024 (%) 2023 (%) 2022 (%) Revenue mix percentages: New vehicle 48.8 47.4 43.6 Used vehicle 28.8 30.4 35.8 Parts and service 17.2 16.8 15.2 Finance and insurance, net 5.1 5.3 5.3 Other 0.1 0.1 0.1 Total 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 16.2 20.7 26.0 Used vehicle 9.2 9.9 10.5 Parts and service 46.2 41.7 36.1 Finance and insurance 28.4 27.6 27.3 Other — 0.1 0.1 Total 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 5.9 8.3 11.6 Used vehicle-retail 5.9 6.5 6.0 Parts and service 47.9 47.2 46.3 Total 17.9 19.0 19.5 Selling, general, and administrative expenses 12.2 12.1 11.2 Operating income 4.9 6.1 7.5 Other operating items as a percentage of total gross profit: Selling, general, and administrative expenses 68.2 63.4 57.5 Operating income 27.3 32.2 38.4 December 31, 2024 2023 Days supply: New vehicle (industry standard of selling days) 39 days 36 days Used vehicle (trailing calendar month days) 37 days 39 days 32 Table of Contents Same Store Operating Data We have presented below our operating results on a same store basis to reflect our internal performance.
Cash Flows The following table summarizes the changes in our cash provided by (used in) operating, investing, and financing activities: Years Ended December 31, (In millions) 2023 2022 2021 Net cash provided by operating activities $ 724.0 $ 1,668.1 $ 1,627.7 Net cash used in investing activities $ (569.9) $ (479.3) $ (460.3) Net cash used in financing activities $ (172.5) $ (1,154.0) $ (1,676.5) Cash Flows from Operating Activities Our primary sources of operating cash flows result from the sale of vehicles, finance and insurance products, and parts and automotive repair and maintenance services, proceeds from vehicle floorplan payable-trade, and collections on auto loans receivable for vehicles sold through our stores.
Cash Flows The following table summarizes the changes in our cash provided by (used in) operating, investing, and financing activities: Years Ended December 31, (In millions) 2024 2023 2022 Net cash provided by operating activities $ 314.7 $ 724.0 $ 1,668.1 Net cash provided by (used in) investing activities $ 12.3 $ (569.9) $ (479.3) Net cash used in financing activities $ (300.6) $ (172.5) $ (1,154.0) Cash Flows from Operating Activities Our primary sources of operating cash flows result from the sale of vehicles, finance and insurance products, and parts and automotive repair and maintenance services, proceeds from vehicle floorplan payable-trade, and collections on auto loans receivable for vehicles sold through our stores.
Our effective income tax rate was 24.4% in 2023 and 24.9% in 2022. Discontinued Operations Discontinued operations are related to stores that were sold or terminated prior to January 1, 2014.
Our effective income tax rate was 24.5% in 2024 and 24.4% in 2023. Discontinued Operations Discontinued operations are related to stores that were sold or terminated prior to January 1, 2014.
The carrying value of our minority equity investment that does not have a readily determinable fair value is required to be adjusted for observable price changes or impairments, both of which could adversely impact our results of operations and financial condition. • Our largest stockholders, as a result of their ownership stakes in us, may have the ability to exert substantial influence over actions to be taken or approved by our stockholders.
The carrying values of our minority equity investments that do not have readily determinable fair values are required to be adjusted for observable price changes or impairments, both of which could adversely impact our results of operations and financial condition. • Our largest stockholders, as a result of their ownership stakes in us, may have the ability to exert substantial influence over actions to be taken or approved by our stockholders.
In addition, we use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. We had $440.0 million of commercial paper notes outstanding at December 31, 2023. See Note 10 of the Notes to Consolidated Financial Statements for additional information.
In addition, we use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. We had $630.0 million of commercial paper notes outstanding at December 31, 2024. See Note 11 of the Notes to Consolidated Financial Statements for additional information.
(2) Amounts for non-vehicle long-term debt obligations reflect principal payments and are not reduced for unamortized debt discounts of $4.7 million or debt issuance costs of $17.2 million. (3) Primarily represents scheduled fixed interest payments on our outstanding senior unsecured notes and finance leases.
(2) Amounts for non-vehicle long-term debt obligations reflect principal payments and are not reduced for unamortized debt discounts of $3.9 million or debt issuance costs of $14.0 million. (3) Primarily represents scheduled fixed interest payments on our outstanding senior unsecured notes and finance leases.
We believe that our cash and cash equivalents, funds generated through operations, and amounts available under our revolving credit facility, commercial paper program, and secured used vehicle floorplan facilities will be sufficient to fund our working capital requirements, service our debt, pay our tax obligations and commitments and contingencies, and meet any seasonal operating requirements for the foreseeable future.
We believe that our cash and cash equivalents, funds generated through operations, and amounts available under our revolving credit facility, commercial paper program, secured used vehicle floorplan facilities, and non-recourse warehouse facilities will be sufficient to fund our working capital requirements, fund the origination of auto loans receivable, service our debt, pay our tax obligations and commitments and contingencies, and meet any seasonal operating requirements for the foreseeable future.
At December 31, 2023, surety bonds, letters of credit, and cash deposits totaled $142.2 million, of which $0.8 million were letters of credit. We do not currently provide cash collateral for outstanding letters of credit. We have negotiated a letter of credit sublimit as part of our revolving credit facility.
At December 31, 2024, surety bonds, letters of credit, and cash deposits totaled $124.3 million, of which $0.8 million were letters of credit. We do not currently provide cash collateral for outstanding letters of credit. We have negotiated a letter of credit sublimit as part of our revolving credit facility.
We also offer indirect financing on certain vehicles we sell through our captive finance company. As of December 31, 2023, we had three reportable segments: Domestic, Import, and Premium Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Stellantis.
We also offer indirect financing through our captive auto finance company on vehicles we sell. As of December 31, 2024, we had four reportable segments: Domestic, Import, Premium Luxury, and AutoNation Finance. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Stellantis.
Other Income (Loss), Net During 2023 and 2022, we recognized a net gain of $16.4 million and a net loss of $19.4 million, respectively, related to changes in the cash surrender value of corporate-owned life insurance (“COLI”) for deferred compensation plan participants as a result of changes in market performance of the underlying investments.
Other Income (Loss), Net During 2024 and 2023, we recognized net gains of $14.5 million and $16.4 million, respectively, related to changes in the cash surrender value of corporate-owned life insurance (“COLI”) for deferred compensation plan participants as a result of changes in market performance of the underlying investments.
As of December 31, 2023, we also owned and operated 53 AutoNation-branded collision centers, 19 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, and an auto finance company.
As of December 31, 2024, we also owned and operated 52 AutoNation-branded collision centers, 24 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, and an auto finance company.
As of December 31, 2023, we owned and operated 349 new vehicle franchises from 252 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well known in our key markets, sell 34 different new vehicle brands.
As of December 31, 2024, we owned and operated 325 new vehicle franchises from 243 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well known in our key markets, sell 31 different new vehicle brands.
At December 31, 2023, surety bonds, letters of credit, and cash deposits totaled $142.2 million, including the $0.8 million of letters of credit issued under our revolving credit facility. We do not currently provide cash collateral for outstanding letters of credit.
At December 31, 2024, surety bonds, letters of credit, and cash deposits totaled $124.3 million, including the $0.8 million of letters of credit issued under our revolving credit facility. We do not currently provide cash collateral for outstanding letters of credit.
As of December 31, 2023, $320.8 million remained available under our stock repurchase limit most recently authorized by our Board of Directors.
As of December 31, 2024, $860.8 million remained available under our stock repurchase limit most recently authorized by our Board of Directors.
Cash Flows from Investing Activities Net cash flows from investing activities consist primarily of cash used in capital additions and activity from business acquisitions, business divestitures, property dispositions, originations and collections of auto loans receivable acquired through third-party dealers, and other transactions.
Cash Flows from Investing Activities Net cash flows from investing activities consist primarily of cash used in capital additions and activity from business acquisitions, business divestitures, property dispositions, originations and collections of auto loans receivable acquired through third-party dealers, and other transactions. In September 2023, we discontinued acquiring installment contracts from third-party dealers.
Non-recourse debt, net of unamortized debt discounts and issuance costs, totaled $258.4 million at December 31, 2023. See Note 5 and Note 10 to the Consolidated Financial Statements for more information. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance.
Non-recourse debt, net of unamortized debt discounts and issuance costs, totaled $826.0 million at December 31, 2024. See Note 6 and Note 11 to the Consolidated Financial Statements for more information. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance.
Same store unit volume benefited from increasing supply of new vehicle inventory, particularly for Import manufacturers, an increase in manufacturer incentives including low-interest financing and rebates, and sustained consumer demand.
Same store unit volume benefited from the increasing supply and availability of new vehicle inventory, particularly for Import manufacturers, and sustained consumer demand. Same store unit volume also benefited from an increase in vehicle affordability, partially due to an increase in manufacturer incentives, including low-interest financing and rebates.
At December 31, 2023, our leverage and interest coverage ratios were as follows: December 31, 2023 Requirement Actual Leverage ratio ≤ 3.75x 2.19x Interest coverage ratio ≥ 3.00x 6.06x Vehicle Floorplan Payable The components of vehicle floorplan payable are as follows: (In millions) 2023 2022 Vehicle floorplan payable - trade $ 1,760.0 $ 946.6 Vehicle floorplan payable - non-trade 1,622.4 1,162.7 Vehicle floorplan payable $ 3,382.4 $ 2,109.3 Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold.
At December 31, 2024, our leverage and interest coverage ratios were as follows: December 31, 2024 Requirement Actual Leverage ratio ≤ 3.75x 2.45x Interest coverage ratio ≥ 3.00x 4.24x Vehicle Floorplan Payable The components of vehicle floorplan payable are as follows: (In millions) 2024 2023 Vehicle floorplan payable - trade $ 2,216.2 $ 1,760.0 Vehicle floorplan payable - non-trade 1,493.5 1,622.4 Vehicle floorplan payable $ 3,709.7 $ 3,382.4 Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold.
Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding our strategic acquisitions, initiatives, partnerships, or investments, including AutoNation USA, AutoNation Finance, and AutoNation Mobile Service; statements regarding our investments in digital and online capabilities and mobility solutions; statements regarding our expectations for the future performance of our business and the automotive retail industry; as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding our strategic initiatives, partnerships, or investments, including AutoNation Finance, statements regarding our expectations for the future performance of our business and the automotive retail industry, including during 2025, statements regarding the impact of the CDK outage on our business and the availability of insurance or other sources of recovery, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
The difference between reported amounts and same store amounts in the above tables of $253.9 million, $61.3 million, and $34.7 million in retail used vehicle revenue and $16.0 million, $2.2 million, and $2.3 million in retail used vehicle gross profit for 2023, 2022, and 2021, respectively, is related to acquisition and divestiture activity, as well as the opening of AutoNation USA stores, as applicable in a given year. 2023 compared to 2022 Same store retail used vehicle revenue decreased during 2023, as compared to 2022, due to a decrease in same store unit volume and a decrease in same store revenue PVR.
The difference between reported amounts and same store amounts in the above tables of $250.6 million, $144.0 million, and $61.3 million in retail used vehicle revenue and $11.1 million, $8.1 million, and $2.2 million in retail used vehicle gross profit for 2024, 2023, and 2022, respectively, is related to acquisition and divestiture activity, as well as the opening of AutoNation USA used vehicle stores, as applicable in a given year. 2024 compared to 2023 Same store retail used vehicle revenue decreased during 2024, as compared to 2023, due to a decrease in same store unit volume and a decrease in same store revenue PVR.
If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our operations, our business, operating results, and prospects could suffer . • A failure of our information systems or any security breach or unauthorized disclosure of confidential information could have a material adverse effect on our business . • Our debt agreements contain certain financial ratios and other restrictions on our ability to conduct our business, and our substantial indebtedness could adversely affect our financial condition and operations and prevent us from fulfilling our debt service obligations . • We are subject to interest rate risk in connection with our vehicle floorplan payables, revolving credit facility, commercial paper program, and warehouse facilities that could have a material adverse effect on our profitability . • Goodwill and other intangible assets comprise a significant portion of our total assets.
A failure of our information systems or any cybersecurity breaches or unauthorized disclosure of confidential information could have a material adverse effect on our business, disrupt our business, and adversely impact our reputation and results of operations. • Our debt agreements contain certain financial ratios and other restrictions on our ability to conduct our business, and our substantial indebtedness could adversely affect our financial condition and operations and prevent us from fulfilling our debt service obligations . • We are subject to interest rate risk in connection with our vehicle floorplan payables, revolving credit facility, commercial paper program, and warehouse facilities that could have a material adverse effect on our profitability . • Goodwill and other intangible assets comprise a significant portion of our total assets.
(In millions) 2023 2022 2021 Cash used in business acquisitions, net (1) $ (271.4) $ (191.6) $ (432.7) Cash received from business divestitures, net $ 23.2 $ 55.2 $ 48.7 (1) Excludes finance leases. 51 Table of Contents Debt The following table sets forth our non-vehicle long-term debt as of December 31, 2023 and 2022: (in millions) Debt Description Maturity Date Interest Payable 2023 2022 3.5% Senior Notes November 15, 2024 May 15 and November 15 $ 450.0 $ 450.0 4.5% Senior Notes October 1, 2025 April 1 and October 1 450.0 450.0 3.8% Senior Notes November 15, 2027 May 15 and November 15 300.0 300.0 1.95% Senior Notes August 1, 2028 February 1 and August 1 400.0 400.0 4.75% Senior Notes June 1, 2030 June 1 and December 1 500.0 500.0 2.4% Senior Notes August 1, 2031 February 1 and August 1 450.0 450.0 3.85% Senior Notes March 1, 2032 March 1 and September 1 700.0 700.0 Revolving credit facility July 18, 2028 Monthly — — Finance leases and other debt Various dates through 2041 362.2 375.5 3,612.2 3,625.5 Less: unamortized debt discounts and debt issuance costs (21.9) (26.0) Less: current maturities (462.4) (12.6) Long-term debt, net of current maturities $ 3,127.9 $ 3,586.9 Our 3.5% Senior Notes due 2024 will mature on November 15, 2024, and were, therefore, reclassified to current during the fourth quarter of 2023.
(In millions) 2024 2023 2022 Cash used in business acquisitions, net (1) $ — $ (271.4) $ (191.6) Cash received from business divestitures, net $ 156.0 $ 23.2 $ 55.2 (1) Excludes finance leases. 50 Table of Contents Debt The following table sets forth our non-vehicle long-term debt as of December 31, 2024 and 2023: (in millions) Debt Description Maturity Date Interest Payable 2024 2023 3.5% Senior Notes November 15, 2024 May 15 and November 15 $ — $ 450.0 4.5% Senior Notes October 1, 2025 April 1 and October 1 450.0 450.0 3.8% Senior Notes November 15, 2027 May 15 and November 15 300.0 300.0 1.95% Senior Notes August 1, 2028 February 1 and August 1 400.0 400.0 4.75% Senior Notes June 1, 2030 June 1 and December 1 500.0 500.0 2.4% Senior Notes August 1, 2031 February 1 and August 1 450.0 450.0 3.85% Senior Notes March 1, 2032 March 1 and September 1 700.0 700.0 Revolving credit facility July 18, 2028 Monthly — — Finance leases and other debt Various dates through 2041 350.0 362.2 3,150.0 3,612.2 Less: unamortized debt discounts and debt issuance costs (17.9) (21.9) Less: current maturities (518.5) (462.4) Long-term debt, net of current maturities $ 2,613.6 $ 3,127.9 In November 2024, we repaid the outstanding $450.0 million of 3.5% Senior Notes due 2024.
Our primary uses of cash from operating activities are repayments of vehicle floorplan payable-trade, purchases of inventory, personnel-related expenditures, originations of loans receivable for vehicles sold through our stores, and payments related to taxes and leased properties. 2023 compared to 2022 Net cash provided by operating activities decreased during 2023, as compared to 2022, primarily due to an increase in working capital requirements, a decrease in earnings, and an increase in originations of loans receivable for vehicles sold through our stores.
Our primary uses of cash from operating activities are repayments of vehicle floorplan payable-trade, purchases of inventory, personnel-related expenditures, originations of loans receivable for vehicles sold through our stores, and payments related to taxes and leased properties. 2024 compared to 2023 Net cash provided by operating activities decreased during 2024, as compared to 2023, primarily due to an increase in originations of auto loans receivable for vehicles sold through our stores as we continued to grow our AutoNation Finance business and increase our finance penetration rates associated with vehicles sold through our stores, as well as a decrease in earnings, partially offset by a decrease in working capital requirements.
See Notes 5 and 10 of the Notes to Consolidated Financial Statements for more information on auto loans receivable, the related allowance for credit losses, and the related debt of our auto finance company. 47 Table of Contents Selling, General, and Administrative Expenses Our SG&A expenses consist primarily of compensation, including store and corporate salaries, commissions, and incentive-based compensation, as well as advertising (net of reimbursement-based manufacturer advertising rebates), and store and corporate overhead expenses, which include occupancy costs, outside service costs, information technology expenses, service loaner and rental inventory expenses, legal, accounting, and professional services, and general corporate expenses.
See Notes 6 and 11 of the Notes to Consolidated Financial Statements for more information about our auto loans receivables and related non-recourse debt, respectively. 46 Table of Contents Selling, General, and Administrative Expenses Our SG&A expenses consist primarily of compensation, including store and corporate salaries, commissions, and incentive-based compensation, as well as advertising (net of reimbursement-based manufacturer advertising rebates), and store and corporate overhead expenses, which include occupancy costs, outside service costs, information technology expenses, service loaner and rental inventory expenses, legal, accounting, and professional services, and general corporate expenses.
We sell these products on a commission basis, and we also participate in the future underwriting profit on certain products pursuant to retrospective commission arrangements with the issuers of those products. The following discussion of finance and insurance results is on a same store basis.
We sell these products on a commission basis, and we also participate in the future underwriting profit on certain products pursuant to retrospective commission arrangements with the issuers of those products.
We had non-recourse debt under our warehouse facilities of $209.4 million at December 31, 2023, and $181.8 million at December 31, 2022, and non-recourse debt under term securitizations of consolidated variable interest entities (“VIEs”) of $50.5 million at December 31, 2023, and $146.9 million at December 31, 2022.
We had non-recourse debt under our warehouse facilities of $801.5 million at December 31, 2024, and $209.4 million at December 31, 2023, and non-recourse debt under term securitizations of consolidated variable interest entities (“VIEs”) of $24.7 million at December 31, 2024, and $50.5 million at December 31, 2023.
AutoNation Finance operating results include the interest and fee income generated by auto loans 46 Table of Contents receivable less the interest expense associated with the debt issued to fund these receivables, a provision for estimated credit losses on the auto loans receivable originated or acquired, direct expenses, and gains or losses on the sale of loans receivable.
ANF income (loss) includes the interest and fee income generated by auto loans receivable less the interest expense associated with the debt issued or used to fund these receivables, a provision for estimated credit losses on the auto loans receivable originated or acquired, direct expenses, and gains or losses on the sale of auto loans receivable.
Import segment income decreased during 2023, as compared to 2022, primarily due to decreases in new vehicle gross profit PVR, which was adversely impacted by continued moderation of pricing and margins resulting from the increasing supply of new vehicle inventory.
Domestic segment income decreased during 2024, as compared to 2023, primarily due to decreases in new vehicle gross profit, used vehicle gross profit, and finance and insurance gross profit. New vehicle gross profit was adversely impacted by continued moderation of margins resulting from the increasing supply and availability of new vehicle inventory.
The decrease in same store unit volume, particularly for mid- to higher-priced used vehicles, is due in part to the shift in mix from used vehicles to new vehicles as a result of increasing supply of new vehicle inventory, an increase in manufacturer new vehicle incentives including low-interest financing and customer rebates, and moderation of new vehicle pricing.
The decrease in same store unit volume, particularly for mid- to higher-priced used vehicles, is the result of the shift in mix from used vehicles to new vehicles due in part to lower availability and levels of late model used vehicles, as well as increasing supply of new vehicle inventory, an increase in manufacturer new vehicle incentives, and moderation of new vehicle pricing.
We will make facility and infrastructure upgrades and improvements from time to time as we identify projects that are required to maintain our current business or that we expect to provide us with acceptable rates of return. 53 Table of Contents 2023 compared to 2022 Net cash used in investing activities increased during 2023, as compared to 2022, primarily due to an increase in purchases of property and equipment, an increase in cash used in acquisitions, and a decrease in cash received from business divestitures, partially offset by an increase in proceeds from the sale of auto loans receivable and an increase in net cash inflows related to auto loans receivable acquired through third-party dealers.
We will make facility and infrastructure upgrades and improvements from time to time as we identify projects that are required to maintain our current business or that we expect to provide us with acceptable rates of return. 52 Table of Contents 2024 compared to 2023 During 2024, we had net cash provided by investing activities, as compared to net cash used in investing activities during 2023, primarily due to a decrease in cash used in business acquisitions, an increase in cash received from business divestitures, a decrease in originations of loans receivable acquired through third-party dealers, and a decrease in capital expenditures.
Except to the extent that differences among reportable segments are material to an understanding of our business taken as a whole, we present the discussion in Management’s Discussion and Analysis of Financial Condition and Results of Operations on a consolidated basis. Overview AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States.
Except to the extent that differences among reportable segments are material to an understanding of our business taken as a whole, we present the discussion in Management’s Discussion and Analysis of Financial Condition and Results of Operations on a consolidated basis.
Our capital allocation decisions are based on factors such as the expected rate of return on our investment, the market price of our common stock versus our view of its intrinsic value, the market price of our debt, the potential impact on our capital structure, our ability to complete acquisitions that meet our market and vehicle brand criteria and/or return on investment threshold, and limitations set forth in our debt agreements.
Our capital allocation decisions are based on factors such as the expected rate of return on our investment, the market price of our common stock versus our view of its intrinsic value, the market price of our debt, the potential impact on our capital structure, our ability to complete acquisitions that meet our strategic objectives, market and vehicle brand criteria, and/or return on investment threshold, and limitations set forth in our debt agreements. 49 Table of Contents Share Repurchases Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit.
The difference between reported amounts and same store amounts in the above tables of $195.3 million, $55.7 million, and $46.8 million in new vehicle revenue and $13.4 million, $4.8 million, and $3.6 million in new vehicle gross profit for 2023, 2022, and 2021, respectively, is related to acquisition and divestiture activity, as applicable in a given year. 2023 compared to 2022 Same store new vehicle revenue increased during 2023, as compared to 2022, due to increases in same store unit volume and same store revenue PVR.
The difference between reported amounts and same store amounts in the above tables of $139.2 million, $140.1 million, and $55.7 million in new vehicle revenue and $6.0 million, $8.9 million, and $4.8 million in new vehicle gross profit for 2024, 2023, and 2022, respectively, is related to acquisition and divestiture activity, as applicable in a given year. 2024 compared to 2023 Same store new vehicle revenue increased during 2024, as compared to 2023, due to an increase in same store unit volume, partially offset by a decrease in same store revenue PVR.
Cash flows from financing activities include changes in commercial paper notes outstanding totaling net proceeds of $390.0 million during 2023 compared to net repayments of $290.0 million during 2022 and changes in vehicle floorplan payable-non-trade totaling net proceeds of $425.3 million during 2023 compared to net proceeds of $178.6 million during 2022.
Cash Flows from Financing Activities Net cash flows from financing activities primarily include repurchases of common stock, debt activity, and changes in vehicle floorplan payable-non-trade. 2024 compared to 2023 Cash flows from financing activities include changes in vehicle floorplan payable-non-trade totaling net repayments of $113.5 million during 2024 compared to net proceeds of $425.3 million during 2023, and changes in commercial paper notes outstanding totaling net proceeds of $190.0 million during 2024 compared to net proceeds of $390.0 million during 2023.
Results of Operations We had net income of $1.0 billion and diluted earnings per share of $22.74 in 2023, as compared to net income of $1.4 billion and diluted earnings per share of $24.29 in 2022.
Results of Operations We had net income of $692.2 million and diluted earnings per share of $16.92 in 2024, as compared to net income of $1.0 billion and diluted earnings per share of $22.74 in 2023.
We monitor our new vehicle inventory values as compared to net realizable values. We had no new vehicle inventory write-downs at December 31, 2023 and December 31, 2022. We recondition the majority of used vehicles acquired for retail sale in our parts and service departments and capitalize the related costs to the used vehicle inventory.
Our new vehicle inventory was net of cumulative write- 28 Table of Contents downs of $2.0 million at December 31, 2024. We had no new vehicle inventory cumulative write-downs at December 31, 2023. We recondition the majority of used vehicles acquired for retail sale in our parts and service departments and capitalize the related costs to the used vehicle inventory.
(2) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. 34 Table of Contents Years Ended December 31, Years Ended December 31, 2023 (%) 2022 (%) 2022 (%) 2021 (%) Revenue mix percentages: New vehicle 47.7 43.6 43.8 46.8 Used vehicle 30.1 35.8 35.5 33.5 Parts and service 16.8 15.2 15.2 14.2 Finance and insurance, net 5.3 5.3 5.3 5.4 Other 0.1 0.1 0.2 0.1 Total 100.0 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 20.8 26.0 26.1 24.4 Used vehicle 9.8 10.5 10.5 13.9 Parts and service 41.7 36.0 36.0 33.5 Finance and insurance 27.6 27.3 27.3 28.1 Other 0.1 0.2 0.1 0.1 Total 100.0 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 8.3 11.6 11.6 10.0 Used vehicle-retail 6.5 6.0 6.0 7.7 Parts and service 47.3 46.2 46.2 45.2 Total 19.1 19.5 19.5 19.1 35 Table of Contents New Vehicle Years Ended December 31, ($ in millions, except per vehicle data) 2023 2022 2023 vs. 2022 2022 vs. 2021 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 12,767.4 $ 11,754.4 $ 1,013.0 8.6 $ 12,081.7 $ (327.3) (2.7) Gross profit $ 1,061.8 $ 1,366.6 $ (304.8) (22.3) $ 1,201.6 $ 165.0 13.7 Retail vehicle unit sales 244,546 229,971 14,575 6.3 262,403 (32,432) (12.4) Revenue per vehicle retailed $ 52,209 $ 51,113 $ 1,096 2.1 $ 46,043 $ 5,070 11.0 Gross profit per vehicle retailed $ 4,342 $ 5,942 $ (1,600) (26.9) $ 4,579 $ 1,363 29.8 Gross profit as a percentage of revenue 8.3% 11.6% 9.9% Inventory days supply (industry standard of selling days) 36 days 19 days Years Ended December 31, 2023 2022 2023 vs. 2022 2022 2021 2022 vs. 2021 Variance Favorable / (Unfavorable) % Variance Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 12,572.1 $ 11,698.7 $ 873.4 7.5 $ 11,400.6 $ 12,034.9 $ (634.3) (5.3) Gross profit $ 1,048.4 $ 1,361.8 $ (313.4) (23.0) $ 1,326.9 $ 1,198.0 $ 128.9 10.8 Retail vehicle unit sales 240,327 229,098 11,229 4.9 223,479 261,556 (38,077) (14.6) Revenue per vehicle retailed $ 52,312 $ 51,064 $ 1,248 2.4 $ 51,014 $ 46,013 $ 5,001 10.9 Gross profit per vehicle retailed $ 4,362 $ 5,944 $ (1,582) (26.6) $ 5,937 $ 4,580 $ 1,357 29.6 Gross profit as a percentage of revenue 8.3% 11.6% 11.6% 10.0% The following discussion of new vehicle results is on a same store basis.
(2) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. 33 Table of Contents Years Ended December 31, Years Ended December 31, 2024 (%) 2023 (%) 2023 (%) 2022 (%) Revenue mix percentages: New vehicle 49.3 47.7 47.7 43.6 Used vehicle 28.4 30.4 30.1 35.8 Parts and service 17.2 16.6 16.8 15.2 Finance and insurance, net 5.1 5.3 5.3 5.3 Other — — 0.1 0.1 Total 100.0 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 16.4 20.9 20.8 26.0 Used vehicle 9.2 9.9 9.8 10.5 Parts and service 46.1 41.4 41.7 36.0 Finance and insurance 28.3 27.7 27.6 27.3 Other — 0.1 0.1 0.2 Total 100.0 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 6.0 8.3 8.3 11.6 Used vehicle-retail 5.9 6.5 6.5 6.0 Parts and service 48.0 47.6 47.3 46.2 Total 17.9 19.0 19.1 19.5 34 Table of Contents New Vehicle Years Ended December 31, ($ in millions, except per vehicle data) 2024 2023 2024 vs. 2023 2023 vs. 2022 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 13,048.2 $ 12,767.4 $ 280.8 2.2 $ 11,754.4 $ 1,013.0 8.6 Gross profit $ 775.5 $ 1,061.8 $ (286.3) (27.0) $ 1,366.6 $ (304.8) (22.3) Retail vehicle unit sales 254,715 244,546 10,169 4.2 229,971 14,575 6.3 Revenue per vehicle retailed $ 51,227 $ 52,209 $ (982) (1.9) $ 51,113 $ 1,096 2.1 Gross profit per vehicle retailed $ 3,045 $ 4,342 $ (1,297) (29.9) $ 5,942 $ (1,600) (26.9) Gross profit as a percentage of revenue 5.9% 8.3% 11.6% Inventory days supply (industry standard of selling days) 39 days 36 days Years Ended December 31, 2024 2023 2024 vs. 2023 2023 2022 2023 vs. 2022 Variance Favorable / (Unfavorable) % Variance Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 12,909.0 $ 12,627.3 $ 281.7 2.2 $ 12,572.1 $ 11,698.7 $ 873.4 7.5 Gross profit $ 769.5 $ 1,052.9 $ (283.4) (26.9) $ 1,048.4 $ 1,361.8 $ (313.4) (23.0) Retail vehicle unit sales 251,642 241,749 9,893 4.1 240,327 229,098 11,229 4.9 Revenue per vehicle retailed $ 51,299 $ 52,233 $ (934) (1.8) $ 52,312 $ 51,064 $ 1,248 2.4 Gross profit per vehicle retailed $ 3,058 $ 4,355 $ (1,297) (29.8) $ 4,362 $ 5,944 $ (1,582) (26.6) Gross profit as a percentage of revenue 6.0% 8.3% 8.3% 11.6% The following discussion of new vehicle results is on a same store basis.
As we continue to grow our AutoNation Finance business and increase our finance penetration rates associated with vehicles sold through our stores, we expect that income related to arranging customer financing will shift to AutoNation Finance.
As we continue to grow our AutoNation Finance business and increase our finance penetration rates associated with vehicles sold through our stores, we expect that income related to arranging customer financing will shift to AutoNation Finance and that the resulting decrease in finance and insurance gross profit will be offset by greater profitability generated by our AutoNation Finance business.
The difference between reported amounts and same store amounts in finance and insurance revenue and gross profit in the above tables of $33.3 million, $7.1 million, and $3.8 million for 2023, 2022, and 2021, respectively, is related to acquisition and divestiture activity, as well as the opening of AutoNation USA stores, as applicable in a given year.
The difference between reported amounts and same store amounts in finance and insurance revenue and gross profit in the above tables of $33.2 million, $20.7 million, and $7.1 million for 2024, 2023, and 2022, respectively, is related to acquisition and divestiture activity, as well as the opening of AutoNation USA used vehicle stores, as applicable in a given year. 2024 compared to 2023 Same store finance and insurance revenue and gross profit decreased during 2024, as compared to 2023, due to decreases in finance and insurance gross profit PVR and used vehicle unit volume, partially offset by an increase in new vehicle unit volume.
If interest rates remain at their current levels or continue to increase without a corresponding increase in floorplan assistance or a decrease in average new vehicle inventory levels, we would expect that we will continue to incur a net new vehicle inventory carrying expense. 37 Table of Contents Used Vehicle Years Ended December 31, 2023 vs. 2022 2022 vs. 2021 ($ in millions, except per vehicle data) 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Reported: Retail revenue $ 7,639.5 $ 9,020.9 $ (1,381.4) (15.3) $ 8,062.4 $ 958.5 11.9 Wholesale revenue 559.0 640.9 (81.9) (12.8) 576.4 64.5 11.2 Total revenue $ 8,198.5 $ 9,661.8 $ (1,463.3) (15.1) $ 8,638.8 $ 1,023.0 11.8 Retail gross profit $ 493.1 $ 538.3 $ (45.2) (8.4) $ 622.3 $ (84.0) (13.5) Wholesale gross profit 14.9 14.8 0.1 65.8 (51.0) Total gross profit $ 508.0 $ 553.1 $ (45.1) (8.2) $ 688.1 $ (135.0) (19.6) Retail vehicle unit sales 274,019 299,806 (25,787) (8.6) 304,364 (4,558) (1.5) Revenue per vehicle retailed $ 27,879 $ 30,089 $ (2,210) (7.3) $ 26,489 $ 3,600 13.6 Gross profit per vehicle retailed $ 1,800 $ 1,795 $ 5 0.3 $ 2,045 $ (250) (12.2) Gross profit as a percentage of retail revenue 6.5% 6.0% 7.7% Inventory days supply (trailing calendar month days) 39 days 31 days Years Ended December 31, 2023 2022 2023 vs. 2022 2022 2021 2022 vs. 2021 Variance Favorable / (Unfavorable) % Variance Variance Favorable / (Unfavorable) % Variance Same Store: Retail revenue $ 7,385.6 $ 8,959.6 $ (1,574.0) (17.6) $ 8,637.9 $ 8,027.7 $ 610.2 7.6 Wholesale revenue 544.5 633.6 (89.1) (14.1) 616.3 574.9 41.4 7.2 Total revenue $ 7,930.1 $ 9,593.2 $ (1,663.1) (17.3) $ 9,254.2 $ 8,602.6 $ 651.6 7.6 Retail gross profit $ 477.1 $ 536.1 $ (59.0) (11.0) $ 516.8 $ 620.0 $ (103.2) (16.6) Wholesale gross profit 16.3 15.9 0.4 17.1 65.8 (48.7) Total gross profit $ 493.4 $ 552.0 $ (58.6) (10.6) $ 533.9 $ 685.8 $ (151.9) (22.1) Retail vehicle unit sales 263,642 297,970 (34,328) (11.5) 286,908 303,082 (16,174) (5.3) Revenue per vehicle retailed $ 28,014 $ 30,069 $ (2,055) (6.8) $ 30,107 $ 26,487 $ 3,620 13.7 Gross profit per vehicle retailed $ 1,810 $ 1,799 $ 11 0.6 $ 1,801 $ 2,046 $ (245) (12.0) Gross profit as a percentage of retail revenue 6.5% 6.0% 6.0% 7.7% The following discussion of used vehicle results is on a same store basis.
If interest rates remain at their current levels or increase without a corresponding increase in floorplan assistance or a decrease in average new vehicle inventory levels, we would expect that we will continue to incur a net new vehicle inventory carrying expense. 36 Table of Contents Used Vehicle Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions, except per vehicle data) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Retail revenue $ 7,076.8 $ 7,639.5 $ (562.7) (7.4) $ 9,020.9 $ (1,381.4) (15.3) Wholesale revenue 643.1 559.0 84.1 15.0 640.9 (81.9) (12.8) Total revenue $ 7,719.9 $ 8,198.5 $ (478.6) (5.8) $ 9,661.8 $ (1,463.3) (15.1) Retail gross profit $ 414.4 $ 493.1 $ (78.7) (16.0) $ 538.3 $ (45.2) (8.4) Wholesale gross profit 24.1 14.9 9.2 14.8 0.1 Total gross profit $ 438.5 $ 508.0 $ (69.5) (13.7) $ 553.1 $ (45.1) (8.2) Retail vehicle unit sales 265,908 274,019 (8,111) (3.0) 299,806 (25,787) (8.6) Revenue per vehicle retailed $ 26,614 $ 27,879 $ (1,265) (4.5) $ 30,089 $ (2,210) (7.3) Gross profit per vehicle retailed $ 1,558 $ 1,800 $ (242) (13.4) $ 1,795 $ 5 0.3 Gross profit as a % of retail revenue 5.9% 6.5% 6.0% Inventory days supply (trailing calendar month days) 37 days 39 days Years Ended December 31, 2024 2023 2024 vs. 2023 2023 2022 2023 vs. 2022 Variance Favorable / (Unfavorable) % Variance Variance Favorable / (Unfavorable) % Variance Same Store: Retail revenue $ 6,826.2 $ 7,495.5 $ (669.3) (8.9) $ 7,385.6 $ 8,959.6 $ (1,574.0) (17.6) Wholesale revenue 613.6 547.6 66.0 12.1 544.5 633.6 (89.1) (14.1) Total revenue $ 7,439.8 $ 8,043.1 $ (603.3) (7.5) $ 7,930.1 $ 9,593.2 $ (1,663.1) (17.3) Retail gross profit $ 403.3 $ 485.0 $ (81.7) (16.8) $ 477.1 $ 536.1 $ (59.0) (11.0) Wholesale gross profit 26.8 15.7 11.1 16.3 15.9 0.4 Total gross profit $ 430.1 $ 500.7 $ (70.6) (14.1) $ 493.4 $ 552.0 $ (58.6) (10.6) Retail vehicle unit sales 254,481 268,010 (13,529) (5.0) 263,642 297,970 (34,328) (11.5) Revenue per vehicle retailed $ 26,824 $ 27,967 $ (1,143) (4.1) $ 28,014 $ 30,069 $ (2,055) (6.8) Gross profit per vehicle retailed $ 1,585 $ 1,810 $ (225) (12.4) $ 1,810 $ 1,799 $ 11 0.6 Gross profit as a % of retail revenue 5.9% 6.5% 6.5% 6.0% The following discussion of used vehicle results is on a same store basis.
Warranty service revenue and gross profit benefited from higher value repair orders and improved parts and labor rates.
Parts and service revenue and gross profit associated with warranty service benefited from improved parts and labor rates, an increase in repair order volume, and higher value repair orders. Customer-pay revenue and gross profit benefited from higher value repair orders.
This section of this Form 10-K includes discussion of year-to-year comparisons between 2023 and 2022. Discussion of year-to-year comparisons between 2022 and 2021 can be found in “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
Discussion of year-to-year comparisons between 2023 and 2022 (other than for AutoNation Finance, a new reportable segment, for which discussion is included herein) can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Premium Luxury segment income decreased during 2023, as compared to 2022, primarily due to a decrease in new vehicle gross profit PVR, which was adversely impacted by continued moderation of pricing and margins resulting from the increasing supply of new vehicle inventory. Premium Luxury segment income was also adversely impacted by increases in floorplan interest and SG&A expenses.
Import segment income decreased during 2024, as compared to 2023, primarily due to a decrease in new vehicle gross profit PVR due to continued moderation of margins resulting from the increasing supply and availability of new vehicle inventory.
The difference between reported amounts and same store amounts in the above tables of $101.9 million, $27.3 million, and $62.0 million in parts and service revenue and $41.4 million, $17.9 million, and $25.6 million in parts and service gross profit for 2023, 2022, and 2021, respectively, is related to acquisition and divestiture activity, as well as the opening of AutoNation USA stores, as applicable in a given year. 2023 compared to 2022 During 2023, same store parts and service revenue increased compared to the same period in 2022, primarily due to increases in revenue associated with customer-pay service of $157.6 million, the preparation of vehicles for sale of $84.3 million, and warranty service of $67.0 million.
The difference between reported amounts and same store amounts in the above tables of $111.1 million, $140.7 million, and $27.3 million in parts and service revenue and $45.7 million, $49.9 million, and $17.9 million in parts and service gross profit for 2024, 2023, and 2022, respectively, is related to acquisition and divestiture activity, as well as the opening of AutoNation USA used vehicle stores, as applicable in a given year. 2024 compared to 2023 Same store parts and service revenue increased during 2024, as compared to 2023, primarily due to increases in revenue associated with warranty service of $95.3 million and customer-pay service of $40.1 million, partially offset by a decrease in wholesale parts sales of $27.8 million.
The decrease in used vehicle unit volume is due in part to a shift in mix from used vehicles to new vehicles and lower availability of lower-priced used vehicles. The decrease in used vehicle revenue PVR is primarily due to a shift in mix towards lower-priced entry-level vehicles.
Used vehicle gross profit was adversely impacted by a shift in mix towards lower-priced entry-level vehicles, which have a relatively lower average gross profit PVR, and a decrease in used vehicle unit volume due in part to the shift in mix from used vehicles to new vehicles.
Our new vehicle inventory units at December 31, 2023 and 2022, were approximately 35,300 and 18,100, respectively. We have typically not experienced significant losses on the sale of new vehicle inventory, in part due to incentives provided by manufacturers to promote sales of new vehicles and our inventory management practices.
We have typically not experienced significant losses on the sale of new vehicle inventory, in part due to incentives provided by manufacturers to promote sales of new vehicles and our inventory management practices. We monitor our new vehicle inventory values as compared to net realizable values.
Revenue and gross profit associated with the preparation of vehicles for sale benefited from higher value repair orders and an increase in repair order volume. 40 Table of Contents Finance and Insurance Years Ended December 31, ($ in millions, except per vehicle data) 2023 vs. 2022 2022 vs. 2021 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Reported: Revenue and gross profit $ 1,418.8 $ 1,437.3 $ (18.5) (1.3) $ 1,384.5 $ 52.8 3.8 Gross profit per vehicle retailed $ 2,736 $ 2,713 $ 23 0.8 $ 2,443 $ 270 11.1 Years Ended December 31, 2023 vs. 2022 2022 vs. 2021 2023 2022 Variance Favorable / (Unfavorable) % Variance 2022 2021 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue and gross profit $ 1,385.5 $ 1,430.2 $ (44.7) (3.1) $ 1,388.3 $ 1,380.7 $ 7.6 0.6 Gross profit per vehicle retailed $ 2,749 $ 2,714 $ 35 1.3 $ 2,720 $ 2,445 $ 275 11.2 Revenue on finance and insurance products represents commissions earned by us for the placement of: (i) loans and leases with financial institutions in connection with customer vehicle purchases financed, (ii) vehicle service contracts with third-party providers, and (iii) other vehicle protection products with third-party providers.
The increases in parts and service revenue and gross profit were partially offset by the CDK outage, which disrupted our sales and service processes, resulting in a decrease in repair order volume and parts sales. 39 Table of Contents Finance and Insurance Years Ended December 31, ($ in millions, except per vehicle data) 2024 vs. 2023 2023 vs. 2022 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Revenue and gross profit $ 1,360.1 $ 1,418.8 $ (58.7) (4.1) $ 1,437.3 $ (18.5) (1.3) Gross profit per vehicle retailed $ 2,612 $ 2,736 $ (124) (4.5) $ 2,713 $ 23 0.8 Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 2024 2023 Variance Favorable / (Unfavorable) % Variance 2023 2022 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue and gross profit $ 1,326.9 $ 1,398.1 $ (71.2) (5.1) $ 1,385.5 $ 1,430.2 $ (44.7) (3.1) Gross profit per vehicle retailed $ 2,622 $ 2,743 $ (121) (4.4) $ 2,749 $ 2,714 $ 35 1.3 Revenue on finance and insurance products represents commissions earned by us for the placement of: (i) loans and leases with third-party financial institutions in connection with customer vehicle purchases financed, (ii) vehicle service contracts with third-party providers, and (iii) other vehicle protection products with third-party providers.
The increase in floorplan interest expense of $103.3 million in 2023, as compared to 2022, was the result of higher average interest rates and higher average vehicle floorplan balances. Interest Expense Interest expense includes the interest related to non-vehicle long-term debt and finance lease obligations. Other interest expense was $181.4 million in 2023 compared to $134.9 million in 2022.
The increase in floorplan interest expense of $74.2 million in 2024, as compared to 2023, was primarily due to higher average vehicle floorplan balances. 47 Table of Contents Interest Expense Other interest expense includes the interest related to non-vehicle long-term debt, commercial paper, and finance lease obligations.
The increases in finance and insurance gross profit PVR were partially offset by a decrease in gross profit per transaction associated with arranging customer financing and a decrease in finance penetration. 41 Table of Contents Segment Results In the following table of financial data, revenue and segment income of our reportable segments are reconciled to consolidated revenue and consolidated operating income, respectively.
The decreases in finance and insurance gross profit PVR were partially offset by higher realized margins on certain vehicle protection products. 40 Table of Contents Segment Results In the following table of financial data, revenue and segment income of our reportable segments are reconciled to consolidated revenue and consolidated operating income, respectively.
Decreases in segment income were partially offset by increases in parts and service gross profit associated with customer-pay service and warranty service. 43 Table of Contents Import The Import segment operating results included the following: Years Ended December 31, 2023 vs. 2022 2022 vs. 2021 ($ in millions) 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 3,996.0 $ 3,473.0 $ 523.0 15.1 $ 3,969.8 $ (496.8) (12.5) Used vehicle 2,222.2 2,652.7 (430.5) (16.2) 2,370.5 282.2 11.9 Parts and service 1,150.1 1,050.9 99.2 9.4 950.0 100.9 10.6 Finance and insurance, net 490.1 494.1 (4.0) (0.8) 489.6 4.5 0.9 Other 22.5 19.6 2.9 18.6 1.0 Total Revenue $ 7,880.9 $ 7,690.3 $ 190.6 2.5 $ 7,798.5 $ (108.2) (1.4) Segment income $ 635.0 $ 734.2 $ (99.2) (13.5) $ 714.7 $ 19.5 2.7 Retail new vehicle unit sales 108,068 95,886 12,182 12.7 118,863 (22,977) (19.3) Retail used vehicle unit sales 91,146 100,131 (8,985) (9.0) 103,418 (3,287) (3.2) 2023 compared to 2022 Import revenue increased during 2023, as compared to 2022, primarily due to an increase in new vehicle unit volume due to the increasing supply of new vehicle inventory and sustained consumer demand, as well as an increase in new vehicle revenue PVR, which benefited from increases in MSRP.
Domestic segment income was also adversely impacted by decreases in gross profit resulting from the CDK outage. 42 Table of Contents Import The Import segment operating results included the following: Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 4,320.0 $ 3,996.0 $ 324.0 8.1 $ 3,473.0 $ 523.0 15.1 Used vehicle 2,162.5 2,222.2 (59.7) (2.7) 2,652.7 (430.5) (16.2) Parts and service 1,194.7 1,150.1 44.6 3.9 1,050.9 99.2 9.4 Finance and insurance, net 470.9 490.1 (19.2) (3.9) 494.1 (4.0) (0.8) Other 8.8 22.5 (13.7) 19.6 2.9 Total Revenue $ 8,156.9 $ 7,880.9 $ 276.0 3.5 $ 7,690.3 $ 190.6 2.5 Segment income $ 476.6 $ 635.0 $ (158.4) (24.9) $ 734.2 $ (99.2) (13.5) Retail new vehicle unit sales 116,242 108,068 8,174 7.6 95,886 12,182 12.7 Retail used vehicle unit sales 90,761 91,146 (385) (0.4) 100,131 (8,985) (9.0) 2024 compared to 2023 Import revenue increased during 2024, as compared to 2023, primarily due to increases in new vehicle revenue and parts and service revenue, partially offset by a decrease in used vehicle revenue.
The effect of a hypothetical 10% decrease in fair value estimates is not intended to provide a sensitivity analysis of every potential outcome. 31 Table of Contents Reported Operating Data Years Ended December 31, ($ in millions, except per vehicle data) 2023 vs. 2022 2022 vs. 2021 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 12,767.4 $ 11,754.4 $ 1,013.0 8.6 $ 12,081.7 $ (327.3) (2.7) Retail used vehicle 7,639.5 9,020.9 (1,381.4) (15.3) 8,062.4 958.5 11.9 Wholesale 559.0 640.9 (81.9) (12.8) 576.4 64.5 11.2 Used vehicle 8,198.5 9,661.8 (1,463.3) (15.1) 8,638.8 1,023.0 11.8 Finance and insurance, net 1,418.8 1,437.3 (18.5) (1.3) 1,384.5 52.8 3.8 Total variable operations (1) 22,384.7 22,853.5 (468.8) (2.1) 22,105.0 748.5 3.4 Parts and service 4,533.7 4,100.6 433.1 10.6 3,706.6 394.0 10.6 Other 30.5 30.9 (0.4) 32.4 (1.5) Total revenue $ 26,948.9 $ 26,985.0 $ (36.1) (0.1) $ 25,844.0 $ 1,141.0 4.4 Gross profit: New vehicle $ 1,061.8 $ 1,366.6 $ (304.8) (22.3) $ 1,201.6 $ 165.0 13.7 Retail used vehicle 493.1 538.3 (45.2) (8.4) 622.3 (84.0) (13.5) Wholesale 14.9 14.8 0.1 65.8 (51.0) Used vehicle 508.0 553.1 (45.1) (8.2) 688.1 (135.0) (19.6) Finance and insurance 1,418.8 1,437.3 (18.5) (1.3) 1,384.5 52.8 3.8 Total variable operations (1) 2,988.6 3,357.0 (368.4) (11.0) 3,274.2 82.8 2.5 Parts and service 2,139.3 1,900.3 239.0 12.6 1,672.7 227.6 13.6 Other 3.6 8.0 (4.4) 5.7 2.3 Total gross profit 5,131.5 5,265.3 (133.8) (2.5) 4,952.6 312.7 6.3 Selling, general, and administrative expenses 3,253.2 3,026.1 (227.1) (7.5) 2,876.2 (149.9) (5.2) Depreciation and amortization 220.5 200.3 (20.2) 193.3 (7.0) Other (income) expense, net 5.9 14.4 8.5 (19.7) (34.1) Operating income 1,651.9 2,024.5 (372.6) (18.4) 1,902.8 121.7 6.4 Non-operating income (expense) items: Floorplan interest expense (144.7) (41.4) (103.3) (25.7) (15.7) Other interest expense (181.4) (134.9) (46.5) (93.0) (41.9) Other income (loss), net 24.4 (14.7) 39.1 24.3 (39.0) Income from continuing operations before income taxes $ 1,350.2 $ 1,833.5 $ (483.3) (26.4) $ 1,808.4 $ 25.1 1.4 Retail vehicle unit sales: New vehicle 244,546 229,971 14,575 6.3 262,403 (32,432) (12.4) Used vehicle 274,019 299,806 (25,787) (8.6) 304,364 (4,558) (1.5) 518,565 529,777 (11,212) (2.1) 566,767 (36,990) (6.5) Revenue per vehicle retailed: New vehicle $ 52,209 $ 51,113 $ 1,096 2.1 $ 46,043 $ 5,070 11.0 Used vehicle $ 27,879 $ 30,089 $ (2,210) (7.3) $ 26,489 $ 3,600 13.6 Gross profit per vehicle retailed: New vehicle $ 4,342 $ 5,942 $ (1,600) (26.9) $ 4,579 $ 1,363 29.8 Used vehicle $ 1,800 $ 1,795 $ 5 0.3 $ 2,045 $ (250) (12.2) Finance and insurance $ 2,736 $ 2,713 $ 23 0.8 $ 2,443 $ 270 11.1 Total variable operations (2) $ 5,734 $ 6,309 $ (575) (9.1) $ 5,661 $ 648 11.4 (1) Total variable operations includes new vehicle, used vehicle (retail and wholesale), and finance and insurance results.
As of December 31, 2024, we had 79 stores with franchise rights totaling $861.2 million. 30 Table of Contents Reported Operating Data Years Ended December 31, ($ in millions, except per vehicle data) 2024 vs. 2023 2023 vs. 2022 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 13,048.2 $ 12,767.4 $ 280.8 2.2 $ 11,754.4 $ 1,013.0 8.6 Retail used vehicle 7,076.8 7,639.5 (562.7) (7.4) 9,020.9 (1,381.4) (15.3) Wholesale 643.1 559.0 84.1 15.0 640.9 (81.9) (12.8) Used vehicle 7,719.9 8,198.5 (478.6) (5.8) 9,661.8 (1,463.3) (15.1) Finance and insurance, net 1,360.1 1,418.8 (58.7) (4.1) 1,437.3 (18.5) (1.3) Total variable operations (1) 22,128.2 22,384.7 (256.5) (1.1) 22,853.5 (468.8) (2.1) Parts and service 4,614.6 4,533.7 80.9 1.8 4,100.6 433.1 10.6 Other 22.6 30.5 (7.9) 30.9 (0.4) Total revenue $ 26,765.4 $ 26,948.9 $ (183.5) (0.7) $ 26,985.0 $ (36.1) (0.1) Gross profit: New vehicle $ 775.5 $ 1,061.8 $ (286.3) (27.0) $ 1,366.6 $ (304.8) (22.3) Retail used vehicle 414.4 493.1 (78.7) (16.0) 538.3 (45.2) (8.4) Wholesale 24.1 14.9 9.2 14.8 0.1 Used vehicle 438.5 508.0 (69.5) (13.7) 553.1 (45.1) (8.2) Finance and insurance 1,360.1 1,418.8 (58.7) (4.1) 1,437.3 (18.5) (1.3) Total variable operations (1) 2,574.1 2,988.6 (414.5) (13.9) 3,357.0 (368.4) (11.0) Parts and service 2,209.0 2,139.3 69.7 3.3 1,900.3 239.0 12.6 Other 2.3 3.6 (1.3) 8.0 (4.4) Total gross profit 4,785.4 5,131.5 (346.1) (6.7) 5,265.3 (133.8) (2.5) AutoNation Finance income (loss) (9.3) (13.9) 4.6 (37.6) 23.7 Selling, general, and administrative expenses 3,263.9 3,253.2 (10.7) (0.3) 3,026.1 (227.1) (7.5) Depreciation and amortization 240.7 220.5 (20.2) 200.3 (20.2) Franchise rights impairment 12.5 — (12.5) — — Other income, net (46.5) (8.0) 38.5 (23.2) (15.2) Operating income 1,305.5 1,651.9 (346.4) (21.0) 2,024.5 (372.6) (18.4) Non-operating income (expense) items: Floorplan interest expense (218.9) (144.7) (74.2) (41.4) (103.3) Other interest expense (179.7) (181.4) 1.7 (134.9) (46.5) Other income (loss), net 9.8 24.4 (14.6) (14.7) 39.1 Income from continuing operations before income taxes $ 916.7 $ 1,350.2 $ (433.5) (32.1) $ 1,833.5 $ (483.3) (26.4) Retail vehicle unit sales: New vehicle 254,715 244,546 10,169 4.2 229,971 14,575 6.3 Used vehicle 265,908 274,019 (8,111) (3.0) 299,806 (25,787) (8.6) 520,623 518,565 2,058 0.4 529,777 (11,212) (2.1) Revenue per vehicle retailed: New vehicle $ 51,227 $ 52,209 $ (982) (1.9) $ 51,113 $ 1,096 2.1 Used vehicle $ 26,614 $ 27,879 $ (1,265) (4.5) $ 30,089 $ (2,210) (7.3) Gross profit per vehicle retailed: New vehicle $ 3,045 $ 4,342 $ (1,297) (29.9) $ 5,942 $ (1,600) (26.9) Used vehicle $ 1,558 $ 1,800 $ (242) (13.4) $ 1,795 $ 5 0.3 Finance and insurance $ 2,612 $ 2,736 $ (124) (4.5) $ 2,713 $ 23 0.8 Total variable operations (2) $ 4,898 $ 5,734 $ (836) (14.6) $ 6,309 $ (575) (9.1) (1) Total variable operations includes new vehicle, used vehicle (retail and wholesale), and finance and insurance results.
Decreases in Premium Luxury revenue were partially offset by an increase in new vehicle revenue PVR, which benefited from increases in MSRP, an increase in new vehicle unit volume, primarily due to increasing supply of new vehicle inventory and sustained consumer demand, and an increase in parts and service revenue associated with customer-pay service and warranty service.
New vehicle revenue benefited from an increase in new vehicle unit volume due to the increasing supply and availability of new vehicle inventory and sustained consumer demand. Parts and service revenue benefited from increases in revenue associated with warranty service and the preparation of vehicles for sale.
The increasing supply and availability of new vehicle inventory, which varies by make and model, has resulted in moderation of new vehicle margins, which we expect will continue in 2024.
Although still below historical levels, new vehicle inventory levels continued to increase during 2024 due to higher levels of manufacturer vehicle production. The increasing supply and availability of new vehicle inventory, which varies by make and model, has resulted in moderation of new vehicle pricing and margins, which we expect will continue 27 Table of Contents in 2025.
The increase in gross profit PVR was partially offset by the shift in mix towards lower-priced entry-level vehicles, which have a lower average gross profit PVR, and continued normalization of used vehicle value trends. 39 Table of Contents Parts & Service Years Ended December 31, 2023 vs. 2022 2022 vs. 2021 ($ in millions) 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 4,533.7 $ 4,100.6 $ 433.1 10.6 $ 3,706.6 $ 394.0 10.6 Gross profit $ 2,139.3 $ 1,900.3 $ 239.0 12.6 $ 1,672.7 $ 227.6 13.6 Gross profit as a percentage of revenue 47.2% 46.3% 45.1% Years Ended December 31, 2023 vs. 2022 2022 vs. 2021 2023 2022 Variance Favorable / (Unfavorable) % Variance 2022 2021 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 4,431.8 $ 4,073.3 $ 358.5 8.8 $ 3,966.0 $ 3,644.6 $ 321.4 8.8 Gross profit $ 2,097.9 $ 1,882.4 $ 215.5 11.4 $ 1,832.0 $ 1,647.1 $ 184.9 11.2 Gross profit as a percentage of revenue 47.3% 46.2% 46.2% 45.2% Parts and service revenue is primarily derived from vehicle repairs paid directly by customers or via reimbursement from manufacturers and others under warranty programs, as well as from wholesale parts sales, collision services, and the preparation of vehicles for sale.
In addition, same store unit volume was adversely impacted by the CDK outage, which resulted in a decrease in productivity from the disruption to our vehicle sales, inventory, and customer relationship management functions in the latter half of June 2024 and less than optimal levels and mix of used vehicle inventory at the start of the third quarter of 2024. 37 Table of Contents Same store used vehicle revenue PVR and gross profit PVR decreased during 2024, as compared to 2023, primarily due to a shift in mix towards lower-priced entry-level vehicles, which have relatively lower average selling prices and gross profit PVR. 38 Table of Contents Parts & Service Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 4,614.6 $ 4,533.7 $ 80.9 1.8 $ 4,100.6 $ 433.1 10.6 Gross profit $ 2,209.0 $ 2,139.3 $ 69.7 3.3 $ 1,900.3 $ 239.0 12.6 Gross profit as a percentage of revenue 47.9% 47.2% 46.3% Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 2024 2023 Variance Favorable / (Unfavorable) % Variance 2023 2022 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 4,503.5 $ 4,393.0 $ 110.5 2.5 $ 4,431.8 $ 4,073.3 $ 358.5 8.8 Gross profit $ 2,163.3 $ 2,089.4 $ 73.9 3.5 $ 2,097.9 $ 1,882.4 $ 215.5 11.4 Gross profit as a percentage of revenue 48.0% 47.6% 47.3% 46.2% Parts and service revenue is primarily derived from vehicle repairs and maintenance paid directly by customers or via reimbursement from manufacturers and others under warranty programs, as well as from wholesale parts sales, the preparation of vehicles for sale, and collision services.
(2) Based on the eligible used vehicle inventory that could have been pledged as collateral. See Note 6 of the Notes to Consolidated Financial Statements for additional information. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance primarily relating to insurance matters.
In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance primarily relating to insurance matters.
Years Ended December 31, ($ in millions) 2023 2022 Variance 2023 vs. 2022 2021 Variance 2022 vs. 2021 Floorplan assistance $ 125.8 $ 108.9 $ 16.9 $ 121.4 $ (12.5) New vehicle floorplan interest expense (132.1) (35.5) (96.6) (22.3) (13.2) Net new vehicle inventory carrying benefit (expense) $ (6.3) $ 73.4 $ (79.7) $ 99.1 $ (25.7) 2023 compared to 2022 During 2023, we had a net new vehicle inventory carrying expense of $6.3 million compared to a net new vehicle inventory carrying benefit of $73.4 million in 2022.
Years Ended December 31, ($ in millions) 2024 2023 Variance 2024 vs. 2023 2022 Variance 2023 vs. 2022 Floorplan assistance $ 136.8 $ 125.8 $ 11.0 $ 108.9 $ 16.9 New vehicle floorplan interest expense (210.6) (132.1) (78.5) (35.5) (96.6) Net new vehicle inventory carrying benefit (expense) $ (73.8) $ (6.3) $ (67.5) $ 73.4 $ (79.7) 2024 compared to 2023 The net new vehicle inventory carrying expense increased in 2024, as compared to 2023, due to an increase in floorplan interest expense, partially offset by an increase in floorplan assistance.
Our total gross profit decreased 3% during 2023, as compared to 2022, driven by decreases in new vehicle gross profit of 22% and used vehicle gross profit of 8%.
Our total gross profit decreased 7% during 2024, as compared to 2023, driven by decreases in new vehicle gross profit of 27%, used vehicle gross profit of 14%, and finance and insurance gross profit of 4%, partially offset by an increase in parts and service gross profit of 3%.
Decreases in segment income were partially offset by an increase in new vehicle unit volume and an increase in parts and service gross profit associated with customer-pay service and the preparation of vehicles for sale. 44 Table of Contents Premium Luxury The Premium Luxury segment operating results included the following: Years Ended December 31, 2023 vs. 2022 2022 vs. 2021 ($ in millions) 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 5,246.4 $ 4,872.3 $ 374.1 7.7 $ 4,510.1 $ 362.2 8.0 Used vehicle 2,979.5 3,499.8 (520.3) (14.9) 3,067.4 432.4 14.1 Parts and service 1,593.1 1,448.6 144.5 10.0 1,246.7 201.9 16.2 Finance and insurance, net 446.2 453.8 (7.6) (1.7) 401.0 52.8 13.2 Other 1.2 3.6 (2.4) 4.7 (1.1) Total Revenue $ 10,266.4 $ 10,278.1 $ (11.7) (0.1) $ 9,229.9 $ 1,048.2 11.4 Segment income $ 836.5 $ 969.1 $ (132.6) (13.7) $ 837.4 $ 131.7 15.7 Retail new vehicle unit sales 69,007 67,710 1,297 1.9 67,329 381 0.6 Retail used vehicle unit sales 75,334 83,858 (8,524) (10.2) 83,447 411 0.5 2023 compared to 2022 Premium Luxury revenue decreased during 2023, as compared to 2022, primarily due to a decrease in used vehicle unit volume, due in part to a shift in mix from used vehicles to new vehicles and lower availability of lower-priced used vehicles, and a decrease in used vehicle revenue PVR, primarily due to a shift in mix towards lower-priced entry-level vehicles.
Import segment income was adversely impacted by an increase in SG&A expenses, largely due to the acquisitions we completed in 2023 and the one-time compensation paid to commission-based associates during the CDK outage, as well as decreases in gross profit resulting from the CDK outage. 43 Table of Contents Premium Luxury The Premium Luxury segment operating results included the following: Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 5,201.1 $ 5,246.4 $ (45.3) (0.9) $ 4,872.3 $ 374.1 7.7 Used vehicle 2,837.0 2,979.5 (142.5) (4.8) 3,499.8 (520.3) (14.9) Parts and service 1,667.4 1,593.1 74.3 4.7 1,448.6 144.5 10.0 Finance and insurance, net 434.1 446.2 (12.1) (2.7) 453.8 (7.6) (1.7) Other 0.3 1.2 (0.9) 3.6 (2.4) Total Revenue $ 10,139.9 $ 10,266.4 $ (126.5) (1.2) $ 10,278.1 $ (11.7) (0.1) Segment income $ 675.7 $ 836.5 $ (160.8) (19.2) $ 969.1 $ (132.6) (13.7) Retail new vehicle unit sales 69,205 69,007 198 0.3 67,710 1,297 1.9 Retail used vehicle unit sales 73,435 75,334 (1,899) (2.5) 83,858 (8,524) (10.2) 2024 compared to 2023 Premium Luxury revenue decreased during 2024, as compared to 2023, primarily due to decreases in new and used vehicle revenue.
Other Intangible Assets Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred.
As of December 31, 2024, we have $223.4 million of goodwill related to the Domestic reporting unit, $524.3 million related to the Import reporting unit, $481.7 million related to the Premium Luxury reporting unit, $140.5 million related to the Mobile Service reporting unit, $78.4 million related to the AutoNation Finance reporting unit, and $4.6 million related to the Collision Centers reporting unit. 29 Table of Contents Other Intangible Assets Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred.
Years Ended December 31, 2023 vs. 2022 2022 vs. 2021 ($ in millions) 2023 2022 Variance Favorable / (Unfavorable) % Variance 2021 Variance Favorable / (Unfavorable) % Variance Reported: Compensation $ 2,126.9 $ 2,061.3 $ (65.6) (3.2) $ 2,017.1 $ (44.2) (2.2) Advertising 243.5 184.3 (59.2) (32.1) 170.3 (14.0) (8.2) Store and corporate overhead 882.8 780.5 (102.3) (13.1) 688.8 (91.7) (13.3) Total $ 3,253.2 $ 3,026.1 $ (227.1) (7.5) $ 2,876.2 $ (149.9) (5.2) SG&A as a % of total gross profit: Compensation 41.4 39.1 (230) bps 40.7 160 bps Advertising 4.8 3.6 (120) bps 3.5 (10) bps Store and corporate overhead 17.2 14.8 (240) bps 13.9 (90) bps Total 63.4 57.5 (590) bps 58.1 60 bps 2023 compared to 2022 SG&A expenses increased in 2023, as compared to 2022, primarily due to acquisitions and newly opened stores, expenditures associated with investments in technology and strategic initiatives, an increase in advertising expenses to support our used vehicle internal sourcing strategy, an increase in deferred compensation obligations of $35.8 million as a result of changes in market performance of the underlying investments, and self-insurance losses of $21.5 million related to hailstorms and other natural catastrophes.
Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Compensation $ 2,107.8 $ 2,126.9 $ 19.1 0.9 $ 2,061.3 $ (65.6) (3.2) Advertising 255.5 243.5 (12.0) (4.9) 184.3 (59.2) (32.1) Store and corporate overhead 900.6 882.8 (17.8) (2.0) 780.5 (102.3) (13.1) Total $ 3,263.9 $ 3,253.2 $ (10.7) (0.3) $ 3,026.1 $ (227.1) (7.5) SG&A as a % of total gross profit: Compensation 44.0 41.4 (260) bps 39.1 (230) bps Advertising 5.4 4.8 (60) bps 3.6 (120) bps Store and corporate overhead 18.8 17.2 (160) bps 14.8 (240) bps Total 68.2 63.4 (480) bps 57.5 (590) bps 2024 compared to 2023 SG&A expenses slightly increased in 2024, as compared to 2023, primarily due to certain one-time compensation of approximately $43 million paid to commission-based associates to ensure business continuity as a result of the CDK outage, acquisitions and newly opened stores, an increase in transportation-related costs for parts and service customers, and an increase in advertising expenses to support vehicle sales.
In addition, future share repurchases and fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock. • Natural disasters and adverse weather events, including the effects of climate change, can disrupt our business.
In addition, future share repurchases and fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock. • Natural disasters and adverse weather events, including the effects of climate change, can disrupt our business. 56 Table of Contents Additional Information Investors and others should note that we announce material financial information using our company website ( www.autonation.com ), our investor relations website ( investors.autonation.com ), SEC filings, press releases, public conference calls, and webcasts.
Gains and losses related to the COLI are substantially offset by corresponding increases and decreases, respectively, in the deferred compensation obligations, which are reflected in SG&A expenses. During 2023 and 2022, we recorded a unrealized gain of $5.2 million and $2.9 million, respectively, related to the change in fair value of the underlying securities of our minority equity investments.
Gains and losses related to the COLI are substantially offset by corresponding increases and decreases, respectively, in the deferred compensation obligations, which are reflected in SG&A expenses.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

10 edited+0 added−0 removed3 unchanged
Biggest changeA hypothetical 10% observable price change for this equity investment would result in an approximate change to gain or loss of $5.7 million.
Biggest changeThe carrying amount of our equity investments without a readily determinable fair value was $49.8 million at December 31, 2024 and $56.7 million at December 31, 2023. A hypothetical 10% observable price change for these equity investments would result in an approximate change to gain or loss of $5.0 million in 2024 and $5.7 million in 2023.
The selected 10% hypothetical change in equity prices is not intended to reflect a best or worst case scenario, as equity price changes could be smaller or larger due to the nature of equity markets. 58 Table of Contents
The selected 10% hypothetical change in equity prices is not intended to reflect a best or worst case scenario, as equity price changes could be smaller or larger due to the nature of equity markets. 57 Table of Contents
During the period that we hold these equity investments, unrealized gains and losses will be recorded as the fair market value of the securities change over time. The fair value of these equity investments was $22.8 million at December 31, 2023.
During the period that we hold these equity investments, unrealized gains and losses will be recorded as the fair market value of the securities change over time. The fair value of these equity investments was $20.0 million at December 31, 2024 and $22.8 million at December 31, 2023.
Our exposure to changes in interest rates with respect to total vehicle floorplan payable is partially mitigated by manufacturers’ floorplan assistance, which in some cases is based on variable interest rates. We had $440.0 million of commercial paper notes outstanding at December 31, 2023, and $50.0 million at December 31, 2022.
Our exposure to changes in interest rates with respect to total vehicle floorplan payable is partially mitigated by manufacturers’ floorplan assistance, which in some cases is based on variable interest rates. We had $630.0 million of commercial paper notes outstanding at December 31, 2024, and $440.0 million at December 31, 2023.
Our fixed rate senior unsecured notes totaled $3.2 billion and had a fair value of $3.0 billion as of December 31, 2023, and totaled $3.2 billion and had a fair value of $2.8 billion as of December 31, 2022. As of December 31, 2023, all auto loans receivable outstanding were fixed-rate installment contracts.
Our fixed rate senior unsecured notes totaled $2.8 billion and had a fair value of $2.6 billion as of December 31, 2024, and totaled $3.2 billion and had a fair value of $3.0 billion as of December 31, 2023. As of December 31, 2024, all auto loans receivable outstanding were fixed-rate installment contracts.
We had $3.4 billion of variable rate vehicle floorplan payable at December 31, 2023, and $2.1 billion at December 31, 2022. Based on these amounts, a 100 basis point change in interest rates would result in an approximate change to our annual floorplan interest expense of $33.8 million in 2023 and $21.1 million in 2022.
We had $3.7 billion of variable rate vehicle floorplan payable at December 31, 2024, and $3.4 billion at December 31, 2023. Based on these amounts, a 100 basis point change in interest rates would result in an approximate change to our annual floorplan interest expense of $37.1 million in 2024 and $33.8 million in 2023.
A hypothetical 10% change in the equity prices of these securities with readily determinable fair values would result in an approximate change to gain or loss of $2.3 million. We also have a minority equity investment without a readily determinable fair value.
A hypothetical 10% change in the equity prices of these securities with readily determinable fair values would result in an approximate change to gain or loss of $2.0 million in 2024 and $2.3 million in 2023. We also have minority equity investments without a readily determinable fair value.
Based on the amount outstanding, a 100 basis point change in interest rates would result in an approximate change to our annual interest expense of $4.4 million in 2023 and $0.5 million in 2022.
Based on the amount outstanding, a 100 basis point change in interest rates would result in an approximate change to our annual interest expense of $6.3 million in 2024 and $4.4 million in 2023.
This equity investment is measured using a measurement alternative as permitted by accounting standards and was initially recorded at cost, to be subsequently adjusted for observable price changes.
These equity investments are measured using a measurement alternative as permitted by accounting standards and were initially recorded at cost, to be subsequently adjusted for observable price changes.
During the period that we hold this investment, unrealized gains and losses may be recorded if we identify observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The carrying amount of our equity investment without a readily determinable fair value was $56.7 million at December 31, 2023.
During the period that we hold these investments, unrealized gains and losses may be recorded if we identify observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

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