This report does not constitute a rating action. Overview Key strengths Key risks Resilient business model with diverse revenue streams. Higher geographic and brand concentration and smaller scale compared to larger public peers. Consistent free operating cash flow (FOCF). Exposure to the cyclical new vehicle sales market. Risk of disruption from online competitors, direct-to-consumer (DTC) sales models, and transition to electric vehicles (EVs). . The company?s S&P Global Ratings-adjusted EBITDA margins fell to about 5.5% through the third quarter of 2024 from 5.8% in 2023. This was partially due to new vehicle gross profit per unit (GPU) falling to about $3,800 in the third quarter of 2024 from about $4,000 in the first quarter and $4,700 in the third quarter
