AutoNation 2015 Annual Report Download - page 37

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Table of Contents
Same store gross profit PVR decreased during 2015, as compared to 2014, primarily due to compressed gross profit PVRs for certified pre-owned vehicles,
particularly in our Premium Luxury segment. During the fourth quarter of 2015, we experienced greater compression in our used vehicle gross profit PVR,
which was largely a result of gross profit PVR compression for new vehicles during the same period.

Same store retail used vehicle revenue increased during 2014, as compared to 2013, due to increases in same store unit volume and revenue PVR. Same
store unit volume benefited from an increase in sales of certified pre-owned vehicles, as well as an increase in trade-in volume associated with new vehicle
sales.
Same store revenue PVR benefited from an increase in the average selling prices of used vehicles for all three segments, a shift in mix away from Import
vehicles, which have relatively lower average selling prices, and an increase in sales of certified pre-owned vehicles, which have relatively higher average
selling prices.
Same store gross profit PVR increased during 2014, as compared to 2013, due to an increase in the gross profit PVR for vehicles at our Import and Premium
Luxury stores and a shift in mix away from Import vehicles, which have a relatively lower average gross profit PVR.

Used vehicle inventories were $539.7 million or 43 days supply at December 31, 2015, compared to $437.6 million or 38 days supply at December 31,
2014. We had 36,299 units in used vehicle inventory at December 31, 2015, and 29,586 units at December 31, 2014. The increase in used vehicle inventory
days supply at December 31, 2015 is primarily due to our policy not to retail any used vehicle that has an open safety recall. As of December 31, 2015,
approximately 17% of our units in used vehicle inventory were subject to our recall policy.
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