Rocky Q3 For Publics, EV Test Drive Interest, Seeing the Same Ad Over and Over

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It’s the last week of the month, so go finish strong! Today, we’re covering how the public dealership groups made out in Q3, plus a survey that says a majority of Americans are interested in test driving an EV and another survey that says we see the same add too many times.

• Lithia & Driveway, AutoNation, and Sonic Automotive report contrasting Q3 financial results, marked by cyberattack impacts, record revenues, and operational successes in both new and used vehicle segments.
  • With a record Q3 revenue of $9.2 billion (up 11% YOY), Lithia saw used car sales jump 18.4%, as its network of 300+ dealerships continued acquisitions.
  • Profit per unit fell significantly, with gross margins declining from 7.2% to 6.6% in used cars, as rising operational costs impacted both new and used vehicle profit margins.
  • AutoNation Q3 revenue declined 4% to $6.6 billion, with a 9% drop in gross profit attributed to the ongoing effects of the June CDK cyberattack that disrupted operations.
  • CEO Mike Manley praised the team’s resilience, citing strong performance in new car and after-sale services as key drivers to offset declines in other areas.
  • EchoPark, Sonic Automotive's used-car division, set a new Q3 record with $55.2 million in gross profit, alongside a 131% YOY increase in net income, thanks to efficient cost-cutting and targeted downsizing of underperforming stores.
  • Despite a 7% drop in unit sales, cost savings drove up per-unit gross profit to $3,111, showcasing resilience in a challenging market.
• A recent Consumer Reports survey shows that many Americans are still interested in exploring electric vehicles, with 50% of Americans saying they’d consider test-driving an EV during their next dealership visit
  • Only 37% are not interested in a test drive, with concerns including the availability of charging stations, battery durability, and high upfront costs.
  • 20% of consumers seeking hybrids or EVs reported dissatisfaction with dealership information, while another 46% felt only "somewhat satisfied."
  • "Consumer interest in cleaner vehicle types continues to be strong, but many consumers still have a lot of questions." said Chris Harto, senior policy analyst at Consumer Reports
• AD-ID’s latest survey highlights ad fatigue as a growing influence on consumer behavior, with a significant portion of U.S. adults feeling increasingly disinclined to engage with brands that overuse ad repetition.
  • 61% of adults report reduced interest in brands showing repeated ads and 49% admit skipping a product purchase due to excessive ad exposure.
  • Younger adults, men, and parents express heightened annoyance with repeat ads.
  • 76% prefer ads that align with their interests; 63% say fresh, relevant ads drive new purchases.
  • “The next step will be knowing how many times [see

Hosts: Paul J Daly and Kyle Mountsier

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