Financial SustainabilityThe current pace of stock buybacks may not be maintainable due to high leverage, with a ratio of 3.25x, alongside normalizing earnings and the necessity for additional financing.
Sales PerformanceA noticeable 'used buyer's strike' is occurring as sales volumes fall short, primarily due to vehicles being priced higher than anticipated, which is intensifying concerns over affordability for buyers.
Supply Chain IssuesUsed vehicle supply is projected to continue facing challenges, impacting AutoNation's ability to navigate these issues effectively, despite efforts to enhance sourcing from consumers.