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

Shoot us a Text.

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 tha

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/