Lithia could need additional capital to fund expansion , and its small size limits borrowing capacity relative to larger competitors . In addition , Lithia could face increased competition for acquisitions if it expands outside core markets or if competitors move into the Pacific Northwest . About
Sonic's prospects look much brighter.
Group 1 is well-positioned for the recovery.
Improving freight tonnage should bode well for Rush's parts and service business.
Customers could delay maintenance or choose a cheaper independent repair shop instead of going to the dealer for servicing , which would negate the technological advantage that Asbury enjoys over smaller repair shops . Overpaying for acquisitions is a big risk and can lead to value destruction for
As publicly traded dealers command greater share in some markets , manufacturers may refuse to approve transfers of franchise rights at some dealerships , limiting acquisition - based growth . New - vehicle sales in the U . S . will recover gradually over time , including the premium and foreign
About 53% of revenue is derived from new-car sales, leaving AutoNation vulnerable to the fluctuations of a viciously cyclical industry. This risk is greater for AutoNation as it gets a much larger share of its sales from California and Florida than the national average. These markets have been hit
CarMax operates in a cyclical industry. 2009 auto sales show that consumers are delaying big-ticket auto purchases until the economy improves.The company has suspended store opening plans because of weakening demand.The repeat business that management expects from the three- to five-year vehicle
Rush is positioned to benefit from a likely rebound in truck sales during the next decade.
Penske Automotive PAG reported third-quarter results Oct. 30. The company showed margin improvement despite an 8% same-store retail revenue decline, excluding foreign currency. We are leaving our fair value estimate unchanged. Gross margins on both new and used vehicles rose year over year. The ...