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AutoNation’s CEO Warns of Used-Car Price Drop as Rising Rates Curb Demand

  • Wholesale price drop in used cars hasn’t hit retail market yet
  • New-car supply to remain below pre-pandemic levels next year
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AutoNation Inc., the biggest US chain of car dealerships, warned that used-vehicle prices are softening as rising interest rates curb demand from more price-sensitive buyers.

The company saidBloomberg Terminal Thursday that third-quarter earnings rose to $6 a share excluding some items. That was below the $6.29 a share average of analysts’ estimates. Revenue increased 4% to $6.67 billion, roughly in line with the average of Wall Street projections.