Waiting for car discounts to return? Don't hold your breath, AutoNation CEO says

Gabrielle Coppola

The largest car dealership chain in the U.S. said discounts on new cars may be a thing of the past as the auto industry seeks to lock in higher prices resulting from pandemic-induced production cuts.

Tighter inventories have allowed automakers and dealers to book fat profits by selling more cars at or above their sticker prices, and the absence of discounts will persist even as vehicle production ramps up in the second half of 2022, the chief executive officer of AutoNation told investors in an earnings call Thursday.