The company just posted its sixth consecutive record numbers for the third quarter. Earnings surged 115% year over year due to higher-than-expected profits from the new and used vehicle units. Low inventory due to the chip shortage is yielding strong pricing power for dealers.
Management believes demand will continue to exceed supply well into next year. An upside to recent inflation is that customers with trade-in vehicles are pretty happy as they are worth more than expected. This means inflation isn’t likely to slow consumers’ automotive purchasing power in 2022.