America’s largest automotive retailer, AutoNation Inc., saw its parts and service gross profit rise 4.1 percent to $251.80 million in the third quarter of 2012 as segment revenue increased 3.3 percent to $596.80 million. Same-store parts and service sales rose 3 percent to $593.30 million, with improvement across the board in internal warranty, customer pay, collision and wholesale parts.
Same-store parts and service gross profit increased 3.8 percent to $251.20 million, primarily because of increases in gross profit associated with the preparation of vehicles for sale of $6.70 million, warranty of $1.40 million and customer-pay service of $1.30 million. Management said that customer-pay service gross profit benefited from improved market conditions and better marketing of products and services in the service department. Notable, this was the ninth consecutive quarter of year-over-year gains in customer-pay gross, as well as revenue.
AutoNation of Fort Lauderdale, FL owns and operates 261 new vehicle franchises that sell 32 brands across 15 states.
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