Used vehicle wholesale prices experienced a slight drop in September amid worries about Q4 trends.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 07 2025
0mins
Source: SeekingAlpha
Wholesale Vehicle Market Trends: The Manheim Used Vehicle Value Index fell 0.2% in September from August but remains 2% higher year-over-year, with mixed segment performance; luxury vehicles and electric vehicles saw price increases, while compact cars and mid-size sedans experienced declines.
Retail Sales and Economic Outlook: Retail used vehicle sales dropped 3.9% from August and 2% year-over-year, with rising average listing prices. Cox Automotive's Chief Economist warns of potential Q4 slowdowns due to supply shifts, high tariffs, and increasing interest rates, despite a stronger-than-expected market performance so far this year.
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Analyst Views on AN
Wall Street analysts forecast AN stock price to rise
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 191.760
Low
230.00
Averages
248.60
High
300.00
Current: 191.760
Low
230.00
Averages
248.60
High
300.00
About AN
AutoNation, Inc., through its subsidiaries, is an automotive retailer in the United States. Its segments include Domestic, Import, Premium Luxury, and AutoNation Finance. The Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Stellantis. The Import segment is primarily comprised of retail automotive franchises that sell new vehicles manufactured by Toyota, Honda, Hyundai, and Subaru. The Premium Luxury segment is primarily comprised of retail automotive franchises that sell new vehicles manufactured by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover. The franchises in each of its Domestic, Import, and Premium Luxury segments also sell used vehicles, parts and automotive services, and automotive finance and insurance products. The AutoNation Finance segment is comprised of its captive auto finance company, which provides indirect financing to qualified retail customers on vehicles it sells.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- UBS Rating Upgrade: UBS analyst Joseph Spak initiates Buy ratings for Lithia Motors (LAD), Sonic Automotive (SAH), and AutoNation (AN), highlighting their significant advantages in cost savings and capital allocation that position them favorably against competitors.
- High-Margin Business Advantage: Spak emphasizes that franchise dealer networks are protected by strong state laws, with their relationships with automakers creating a parts and service (P&S) business with a gross margin of 54%, significantly higher than the 6% margin on new vehicle sales, showcasing their profitability potential.
- Cash Flow and Buyback Strategy: The analyst notes that the free cash flow for auto dealers is solid, with some cash available for consolidation or partnerships with Chinese OEMs, while AutoNation's share repurchase potential is seen as a crucial part of its investment thesis.
See More
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- Openlane Upgrade: JPMorgan upgraded Openlane from neutral to overweight and raised its December 2026 price target to $38, indicating that the online used car marketplace is experiencing robust growth and has potential for sustainable expansion over the coming years.
- Dollar General Downgrade: Deutsche Bank downgraded Dollar General from buy to hold, citing challenges in its customer base and the widening gap in the K-shaped economy, which may limit same-store sales upside, reflecting a cautious outlook on the company.
- Ecolab Upgrade: UBS upgraded Ecolab from neutral to buy and raised its price target to $325, demonstrating strong demand and positive performance expectations for the chemicals company amid a favorable market environment.
- FedEx Upgrade: JPMorgan upgraded FedEx from neutral to overweight, expressing optimism ahead of its upcoming earnings report, particularly regarding the separation of its freight business, which is seen as an attractive risk-reward opportunity.
See More
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- Oversold Signal: AutoNation, Inc. (Ticker: AN) entered oversold territory on Tuesday with an RSI of 29.2, hitting a low of $177.56 per share, indicating that recent heavy selling may be nearing exhaustion, prompting bullish investors to seek buying opportunities.
- Market Comparison: In contrast, the S&P 500 ETF (SPY) has an RSI of 68.3, highlighting a significant divergence in market sentiment, which may attract investors looking for a rebound in AN's oversold condition.
- Price Fluctuation Range: AN's 52-week low is $176.25 per share, while the high is $228.9166, with the last trade at $178.59, suggesting that the stock remains within its historical volatility range, potentially indicating rebound opportunities.
- Investor Sentiment: Despite the current oversold status, investors should carefully assess market sentiment and fundamentals to determine whether to enter at this point, avoiding potential risks of further declines.
See More
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- Strong After-Sales Performance: The after-sales segment achieved solid mid-single-digit growth, with total store gross profit reaching a record $593 million in the first quarter, underscoring the importance of this segment in the company's earnings structure despite adverse weather impacts.
- Cost Control Strategy: CFO Szlosek indicated that SG&A expenses are expected to decrease by 150 basis points in the coming quarters, although remaining above the long-term target range, reflecting the company's efforts to control costs and optimize spending.
- Uncertain Market Outlook: Management did not provide formal EPS or revenue guidance, citing affordability pressures and macro shocks that have led to a forecast below the original 5% industry outlook, indicating a cautious stance on future demand.
See More
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- iPhone Sales Robust: The company's iPhone revenue reached $56.99 billion, slightly above the consensus estimate of $56.98 billion, indicating its sustained competitiveness and consumer preference in the smartphone market.
- Nebius Acquires Eigen AI: Nebius announced an agreement to acquire artificial intelligence company Eigen AI for approximately $643 million, which will enhance its Token Factory's capabilities, positioning it as a frontier managed inference platform for production AI, showcasing its strategic focus in the AI sector.
- Colgate-Palmolive Revenue Growth: Colgate-Palmolive's first-quarter revenue increased by 8.4% to $5.32 billion, and despite a 1.8% decline in North American organic sales, strong performances in Latin America and Asia Pacific demonstrate the company's resilience in global markets.
See More
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- Revenue Decline: AutoNation's total revenue for Q1 was $6.55 billion, down 2.1% year-over-year, with same-store revenue decreasing by 4%, indicating weak market demand that could impact future profitability.
- Profit Drop: Same-store profit fell by 2%, and operating income decreased by 6% to $314.3 million, reflecting challenges in cost control and market competition, which may weaken investor confidence.
- Earnings Beat Expectations: Despite the overall poor performance, AutoNation reported a non-GAAP EPS of $4.69, exceeding consensus estimates by $0.08, demonstrating resilience in profitability, partly due to a lower overall share count.
- Strong Financial Position: At the end of the quarter, AutoNation had $1.6 billion in liquidity, including $66 million in cash and $1.6 billion available under its revolving credit facility, showcasing the company's financial flexibility and capital deployment capabilities in a dynamic market environment.
See More
