“Consumer sentiment is improving every month,” Manley said. “Our banking partners are reporting 20% increases in applications and originations, and their delinquencies continue to improve.”
During the second quarter, AutoNation’s revenue was down 1% year over year. The company saw year-over-year declines of 2% in same-store revenue, 5% in same-store gross profit, 5% in same-store new vehicle retail unit sales and 8% in same-store used vehicle retail unit sales, according to a Friday earnings release.
In a presentation released Friday, AutoNation said the company faced headwinds related to tariffs and battery electric vehicle (BEV) sales. New vehicles sales were impacted by the “tariff pull-ahead” seen in April 2025 and the BEV subsidies that were in place through September 2025.
During an earlier earnings call, in February, Manley said AutoNation and others in the industry had seen shoppers race to buy vehicles in early 2025 before the implementation of tariffs and the expiration of electric vehicle tax credits. That created a “strong pull ahead” that affected vehicle sales in subsequent quarters, Manley said.
During Friday’s earning call, Manley said that during the second quarter, BEV sales were down by more than 30% year over year.
“We’re looking forward to the second half when the volume comparison headwinds from 2025 relating to tariffs and EV credits lapse,” Manley said.
Looking ahead, AutoNation expects to see consumer and industry sales remain resilient, new and used vehicle profitability stabilize, and its market share grow, according to the presentation.
Manley said during the call that the seasonally adjusted annual rate (SAAR) is “at a healthy place” and consumers are “incredibly resilient given everything that is going on.” He added that affordability levels are the best they’ve been in a few years. While not back to pre-COVID levels, affordability is “significantly improved” over the past 24 to 48 months.
“That was largely stable Q1 to Q2, and I think it’s going to be stable as we get into Q3 and Q4, which means, from my point of view, the underlying SAAR, absent a shock that none of us can see, I think is going to be in a good place as we get into the second half,” Manley said.
