AutoNation Moves Into Mobile Car Servicing With $190M RepairSmith Acquisition

AutoNation says it will expand its post-sale vehicle service offerings by acquiring mobile car repair platform RepairSmith.

The $190 million deal, announced Monday (Dec. 12), is happening when many consumers are choosing to repair old cars instead of buying new ones, and car dealers are feeling pessimistic about their prospects.

AutoNation CEO Michael Manley said in a news release that the purchase is part of a broader move by the auto retailer to expand its capabilities.

“RepairSmith is the next step in our plan,” he said. “It expands AutoNation’s ability to penetrate the extensive after-sales service market and conveniently respond to our customers’ needs by broadening the reach of our existing after-sales network.”

The release noted that while around 80% of cars sold by AutoNation get yearly service at franchised dealerships in the first three years of ownership, that percentage drops drastically in the following years.

The company says RepairSmith will let customers have their cars repaired at home, work or on-site for fleet vehicles.

“AutoNation will also utilize RepairSmith as a resource for reconditioning and internal services to increase our speed to frontline readiness and expedite vehicle delivery to customers,” the release said.

The purchase follows last month’s announcement that AutoNation had acquired a 6.1% minority ownership stake in the automotive digital marketplace TrueCar as the two companies work together to develop new digital car-buying and car-selling tools.

The company reported in October that retail sales of both new and used vehicles remain below historical levels because of inventory constraints.

And while those inventory issues have abated somewhat, car dealer sentiment is at its lowest level since the start of the pandemic, according to a recent Cox Automotive survey.

“Dealers are normally optimistic, so the drop in the 3-month outlook to a new low in our survey history is particularly noteworthy,” said Johnathan Smoke, chief economist at Cox.

Consumers aren’t feeling much better, PYMNTS research has shown, with Americans expecting the current economic instability to persist into 2024, meaning big-ticket item purchases– such as new cars – will likely be put on hold.

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