AutoNation Quits Used Car Market

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AutoNation Quits
Used Car Market

December 15, 1999

AutoNation closed its 23 used-car superstores abruptly this week, putting about 1,800 employees out of work. The company said it would concentrate its resources on the new-car market.

AutoNation is already America's largest new-car dealer, with dealerships in 19 states and annual sales of $20 billion. Used cars accounted for only $1 billion of that, analysts said.

AutoNation, founded in 1996, pioneered the no-haggle pricing method that has become popular with many consumers. Its used-car strategy foundered when demand for used cars sagged because of the strong economy, the rising popularity of SUVs and other factors.

Besides its "bricks-and-mortar" dealerships, AutoNation operates 270 World Wide Web sites through its AutoNationDirect.com.

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