‘Free Money’ Vanishes, So Top U.S. Auto Dealer Bets on Used Cars
- AutoNation invests $50 million in online used-vehicle retailer
- Consumers are adjusting to higher financing costs, CEO says
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Rising interest rates are leading more American consumers to balk at buying costly new cars, leading the biggest U.S. auto dealer to wager more on used vehicles.
AutoNation Inc. said Tuesday that it’s investing $50 million in Vroom Inc., an online buyer and seller of used cars that offers no-haggle pricing and home delivery. AutoNation disclosed the deal along with the news of its steepest drop in quarterly new-vehicle sales in nine years, which sent shares sliding.