Autonation (AN) risk factors, FY2024 10-K

Autonation's FY2024 10-K, filed Feb 14, 2025, lists 13 risk factors in 8 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
138 groups
Section length
7k wordsItem 1A

Autonation's biggest risks in the FY2024 10-K

  • AutoNation's risk profile is dominated by heavy dependence on vehicle manufacturers and franchise agreements, captive auto finance operations, and regional geographic concentration.

The risks most specific to Autonation

  • Risks Related to Vehicle Manufacturers and Other Third-Party Suppliers

    Our new vehicle sales are impacted by the incentive, marketing, and other programs of vehicle manufacturers

    Our new vehicle sales depend heavily on the incentive and marketing programs established by vehicle manufacturers.

  • Risks Related to Vehicle Manufacturers and Other Third-Party Suppliers

    We are dependent upon the success and continued financial viability of the vehicle manufacturers and distributors with which we hold franchises. In addition, we rely on various third-party suppliers for key products and services

    We rely exclusively on vehicle manufacturers for our new vehicle inventory and successful product allocation.

  • Risks Related to Vehicle Manufacturers and Other Third-Party Suppliers

    impacted manufacturer. In addition, vehicle recall campaigns could materially adversely affect our business, results of operations, and financial condition

    The bankruptcy of a major vehicle manufacturer or vehicle recall campaigns could materially and adversely affect our business.

  • Risks Related to Vehicle Manufacturers and Other Third-Party Suppliers

    We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores

    Vehicle manufacturers exercise significant influence over our store operations and our ability to acquire additional stores.

  • Risks Related to Strategic Initiatives

    We are subject to various risks associated with originating and servicing auto finance loans through indirect lending to customers, any of which could have an adverse effect on our business

    Our captive finance company, AutoNation Finance, exposes us to risks of borrower defaults and insufficient vehicle collateral.

  • Risks Relating to our Indebtedness

    and our other indebtedness. Additionally, we have granted certain manufacturers the right to acquire, at fair market value, our automotive stores franchised by those manufacturers in specified circumstances in the event of our default under our debt agreements

    Defaults under our debt agreements could trigger rights for manufacturers to acquire our franchised automotive stores.

  • Risks Relating to our Indebtedness

    We are subject to interest rate risk in connection with our vehicle floorplan payables, revolving credit facility, commercial paper program, and warehouse facilities that could have a material adverse effect on our profitability

    Rising variable interest rates would increase our interest expense on vehicle floorplan payables and credit facilities.

  • Risks Relating to our Stockholders

    Natural disasters and adverse weather events, including the effects of climate change, can disrupt our business

    Severe weather and natural disasters in our primary markets of Florida, California, and Texas can disrupt store operations.

All 13 risk factors

Headings as the filing states them, in filing order.

Risks Related to Vehicle Manufacturers and Other Third-Party Suppliers

  1. 01Our new vehicle sales are impacted by the incentive, marketing, and other programs of vehicle manufacturers
  2. 02We are dependent upon the success and continued financial viability of the vehicle manufacturers and distributors with which we hold franchises. In addition, we rely on various third-party suppliers for key products and services
  3. 03impacted manufacturer. In addition, vehicle recall campaigns could materially adversely affect our business, results of operations, and financial condition
  4. 04We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores

Risks Related to Strategic Initiatives

  1. 05If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that damage our retail brands, reputation, or sales channels, our business and financial results may be harmed
  2. 06We are subject to various risks associated with originating and servicing auto finance loans through indirect lending to customers, any of which could have an adverse effect on our business

Risks Related to Legal, Regulatory, and Compliance Matters

  1. 07New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects
  2. 08We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects

Risks Relating to our Indebtedness

  1. 09Our debt agreements contain certain financial ratios and other restrictions on our ability to conduct our business, and our substantial indebtedness could adversely affect our financial condition and operations and prevent us from fulfilling our debt service obligations
  2. 10and our other indebtedness. Additionally, we have granted certain manufacturers the right to acquire, at fair market value, our automotive stores franchised by those manufacturers in specified circumstances in the event of our default under our debt agreements
  3. 11We are subject to interest rate risk in connection with our vehicle floorplan payables, revolving credit facility, commercial paper program, and warehouse facilities that could have a material adverse effect on our profitability

Risks Relating to our Stockholders

  1. 12In the future, our largest stockholders may acquire or dispose of shares of our common stock and thereby increase or decrease their ownership stake in us. Significant fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock
  2. 13Natural disasters and adverse weather events, including the effects of climate change, can disrupt our business

Other Autonation 10-Ks

  • FY2025 10-K risk factors
    13 risks3 new3 dropped3 reworded

    AutoNation highlights risks from strategic investments in AutoNation Finance and AutoNation USA stores. Changes focus on manufacturer franchise termination rights and equity investment volatility.

    Filed Feb 12, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.