AutoNation Inc. reported a record $1.16 billion in parts and service (after-sales) revenue for the third quarter of 2023 — an increase of 12.1% compared to a year ago. On a same-store basis, after-sales revenue grew 9.7% to $1.13 billion, primarily attributable to increases in revenue associated with customer-pay service of roughly $40.50 million, the preparation of vehicles for sale of $27.10 million and warranty service of $16.20 million.
After-sales gross profit rose 14.0% to a record $545.80 million, with gross margin growing from 46.4% to 47.2% year over year. Same-store gross profit increased 12.4% to $534.10 million, primarily tied to increases in gross profit associated with customer-pay service of approximately $25.40 million, the preparation of vehicles for sale of $13.80 million and warranty service of $12.60 million.
Revenue and gross profit associated with customer-pay service benefited from higher-value repair orders as well as an increase in repair order volume.
Fort Lauderdale, FL-based AutoNation, through its subsidiaries, is one of the largest automotive retailers in the United States. As of Sept. 30, 2023, the company owned and operated 354 new vehicle franchises from 253 stores located predominantly in the Sunbelt region. AutoNation’s stores sell 34 different new vehicle brands.
The company also owned and operated 53 AutoNation-branded collision centers, 17 AutoNation USA used vehicle stores, four AutoNation-branded automotive auction operations, three parts distribution centers, a mobile automotive repair and maintenance business (RepairSmith) and an auto finance company.