Cuộc họp công bố kết quả kinh doanh Q3 2026 của Sonic Automotive (SAH): Doanh thu kỷ lục 4 tỷ USD, doanh số EchoPark tăng 22%

Các điểm chính

• Sonic Automotive đã báo cáo doanh thu quý 3/2026 kỷ lục đạt 4,0 tỷ USD và lợi nhuận gộp kỷ lục 617,5 triệu USD. EPS pha loãng theo GAAP đạt 1,28 USD, trong khi EPS pha loãng điều chỉnh đạt 1,30 USD.
• Doanh thu mảng Đại lý ủy quyền giảm 3% xuống 3,3 tỷ USD. Doanh số xe mới của các cửa hàng hiện hữu giảm 7%, chủ yếu phản ánh mức so sánh cơ sở khó khăn từ việc nhu cầu xe điện được đẩy sớm trong quý 3/2025.
• Doanh thu EchoPark tăng 14% lên 596 triệu USD, trong khi doanh số xe cũ bán lẻ tăng 22% lên 19.923 chiếc. Lợi nhuận gộp mảng đạt mức kỷ lục trong quý 3 là 58,9 triệu USD.
• Lợi nhuận gộp từ mảng dịch vụ cố định tăng 2% lên mức kỷ lục 265,4 triệu USD. Ban lãnh đạo kỳ vọng sự cải thiện khiêm tốn trong quý 4, nhờ sự hỗ trợ của các dịch vụ giá cạnh tranh, lưu lượng đơn đặt hàng sửa chữa cao hơn và việc thực hiện tốt hơn các đề xuất dịch vụ bổ sung.
• Doanh thu mảng Xe thể thao tăng 35% lên mức kỷ lục 113,7 triệu USD, với doanh số xe mới và xe cũ bán lẻ tăng lần lượt 32% và 35%.
• Ban lãnh đạo kỳ vọng EBITDA điều chỉnh quý 4 của EchoPark đạt từ 2 triệu USD đến 4 triệu USD, đã bao gồm từ 5 triệu USD đến 7 triệu USD chi phí tiếp thị thương hiệu tăng thêm.

Dữ liệu tài chính cốt lõi

Kết quả hoạt động kinh doanh và vận hành

Đại lý ủy quyền

Doanh số xe mới của các cửa hàng hiện hữu giảm 7%, chủ yếu do tỷ trọng xe điện cao hơn tại các thương hiệu hạng sang và các cửa hàng ở California. Sonic ước tính việc nhu cầu xe điện được đẩy sớm trong năm trước đã đóng góp khoảng 2.200 chiếc bán lẻ trong quý 3/2025 và gây áp lực làm giảm 5 triệu USD lợi nhuận gộp so với cùng kỳ năm trước, bao gồm cả F&I liên quan. Nếu không tính các đơn vị này, ban lãnh đạo cho biết doanh số xe mới bán lẻ đã đi ngang so với cùng kỳ.

Lợi nhuận gộp trên mỗi đơn vị xe mới theo báo cáo tăng 2% lên 3.048 USD. GPU xe mới của cửa hàng hiện hữu không thay đổi ở mức 3.000 USD. Ban lãnh đạo cho biết sự ổn định biên lợi nhuận là nhờ kỷ luật định giá chặt chẽ hơn trong khi vẫn duy trì được thị phần.

Doanh số xe cũ của cửa hàng hiện hữu tăng 3%, trong khi GPU xe cũ của cửa hàng hiện hữu giảm 3% xuống 1.506 USD. Công ty tiếp tục duy trì mục tiêu trung bình 100 xe cũ bán lẻ trên mỗi đại lý hàng tháng, tương đương tiềm năng tăng trưởng doanh số tự thân khoảng 20% so với mức hiện tại.

Dịch vụ cố định tiếp tục là mảng đóng góp lợi nhuận chính. Lợi nhuận gộp cửa hàng hiện hữu tăng 1%, với lợi nhuận gộp từ bảo hành tăng 1% và lợi nhuận gộp từ khách hàng tự trả phí đi ngang. Lệnh sửa chữa do khách hàng tự trả phí tăng 1% so với cùng kỳ năm ngoái và tăng 3% so với quý trước sau khi Sonic triển khai các dịch vụ giá cạnh tranh và mở rộng tiếp thị dịch vụ.

Lợi nhuận gộp F&I của cửa hàng hiện hữu đi ngang, trong khi lợi nhuận gộp F&I trên mỗi đơn vị tăng 2% lên 2.630 USD. Ban lãnh đạo cho biết tỷ lệ thâm nhập sản phẩm đã phục hồi lên mức từ 1,8 đến 2,0 sản phẩm trên mỗi xe sau khi suy yếu vào đầu quý.

EchoPark

Doanh số xe cũ bán lẻ của EchoPark tăng 22% lên 19.923 chiếc, nhờ nhu cầu của người tiêu dùng và tỷ lệ xe được thu mua ngoài đấu giá cao hơn. Tổng lợi nhuận gộp trên mỗi đơn vị xe giảm 12% xuống 2.972 USD.

Lợi nhuận gộp F&I trên mỗi đơn vị xe giảm 15% xuống 2.754 USD do tỷ lệ xe điện chạy pin và xe chạy nhiều km cao hơn, vốn có tỷ lệ thâm nhập bảo hành thấp hơn. GPU bán xe trực tiếp (front-end GPU) của xe cũ tăng 96 USD lên 218 USD.

Sonic đã giới thiệu các sản phẩm bảo hành xe điện và xe chạy nhiều km để giảm bớt áp lực lên F&I. Ban lãnh đạo cũng nhận thấy tiềm năng lợi nhuận bổ sung từ việc tăng cường thu mua ngoài đấu giá và xây dựng độ nhận diện thương hiệu EchoPark, ước tính đạt khoảng 13% ở các thị trường hiện tại.

Địa điểm EchoPark tại Orlando dự kiến mở cửa vào tháng 12. Ban lãnh đạo cho biết các địa điểm hiện tại vẫn còn công suất cho thêm 200 đến 300 xe mỗi cửa hàng hàng tháng và dự kiến mở từ hai đến bốn địa điểm mới trong năm 2027.

Mảng Xe thể thao

Mảng Xe thể thao mang lại doanh thu và lợi nhuận gộp kỷ lục. Doanh số bán lẻ xe mới theo báo cáo tăng 32%, trong khi doanh số xe cũ tăng 35%. Doanh số cửa hàng hiện hữu của xe mới và xe cũ tăng lần lượt 6% và 1%.

Doanh thu F&I tăng 42% lên 4,7 triệu USD, với F&I trên mỗi đơn vị xe tăng 8% lên 1.148 USD. Thu nhập mảng điều chỉnh giảm 1% xuống 7,9 triệu USD, trong khi EBITDA điều chỉnh tăng 4% lên 10,5 triệu USD.

Chi phí, Công nghệ và Phân bổ vốn

Chi phí SG&A cao hơn đã gây áp lực lên khả năng sinh lời hợp nhất. Ban lãnh đạo dẫn ra các nguyên nhân gồm chi phí xe cho mượn dịch vụ, lạm phát giá nhiên liệu, chi phí đi lại và khoảng 2 triệu USD chi tiêu CNTT tăng thêm liên quan đến các sáng kiến AI.

Sonic cho biết tự động hóa bộ phận hậu cần và AI đã giúp tiết kiệm khoảng 2,6 triệu USD từ đầu năm đến nay. Công ty cũng đang triển khai AI trong việc định giá dịch vụ cố định, định giá tồn kho và năng suất vận hành.

Công ty kết thúc quý với khoảng 585 triệu USD thanh khoản khả dụng. Công ty còn 528 triệu USD trong hạn mức ủy quyền mua lại cổ phiếu và cho biết đang cân nhắc giữa việc mua lại cổ phiếu và các cơ hội thâu tóm. Hội đồng quản trị đã phê duyệt mức cổ tức 0,41 USD trên mỗi cổ phiếu, thanh toán vào ngày 15 tháng 1 năm 2027 cho các cổ đông chốt danh sách vào ngày 15 tháng 12 năm 2026.

Dự báo của Ban lãnh đạo

• EBITDA điều chỉnh quý 4 của EchoPark dự kiến sẽ nằm trong khoảng từ 2 triệu đến 4 triệu USD, bao gồm 5 triệu đến 7 triệu USD chi phí tiếp thị thương hiệu tăng thêm.
• Ban lãnh đạo dự kiến chi tiêu cho thương hiệu EchoPark sẽ tiếp tục kéo dài sang năm 2027, với các lợi ích tài chính sẽ trở nên rõ ràng hơn vào cuối năm.
• Tăng trưởng dịch vụ cố định dự kiến sẽ duy trì gần 3% hoặc cao hơn một chút trong quý 4. Ban lãnh đạo chỉ ra rằng việc trở lại mức tăng trưởng mạnh mẽ hơn có thể phải chờ đến giữa hoặc nửa sau năm 2027.
• Sonic vẫn nằm trong phạm vi dự báo cả năm về tỷ lệ chi phí SG&A trên lợi nhuận gộp, mặc dù tăng trưởng dịch vụ cố định trong quý 2 và quý 3 yếu hơn so với kế hoạch.
• Việc cắt giảm xe cho mượn dịch vụ và các sáng kiến chi phí khác dự kiến sẽ trở nên rõ ràng hơn trong quý 1/2027 thay vì ảnh hưởng đáng kể đến quý 4/2026.
• Công ty có kế hoạch mở từ hai đến bốn địa điểm EchoPark trong năm 2027 và dự kiến sẽ bắt đầu triển khai các thành tố của giải pháp bán lẻ kỹ thuật số trong năm này.

Rủi ro và các yếu tố cần theo dõi

• Khả năng chi trả của người tiêu dùng vẫn là thách thức trong mảng bán xe và dịch vụ, đòi hỏi phải cung cấp các gói dịch vụ giá rẻ hơn và tiếp thị mục tiêu hơn.
• Tăng trưởng dịch vụ cố định vẫn thấp hơn kỳ vọng từ mức giữa đến cận trên một chữ số mà ban lãnh đạo đưa ra trước đó.
• Tỷ trọng xe điện và xe chạy nhiều km ngày càng tăng tại EchoPark đang gây áp lực lên tỷ lệ thâm nhập bảo hành và lợi nhuận gộp F&I trên mỗi đơn vị xe.
• SG&A cao hơn, bao gồm các chi phí liên quan đến khách hàng và các khoản đầu tư công nghệ chiến lược, đang hạn chế đòn bẩy hoạt động trong ngắn hạn.
• Chiến dịch thương hiệu dự kiến của EchoPark đòi hỏi khoản chi tiêu ban đầu lớn, trong khi ban lãnh đạo dự kiến các lợi ích tài chính tạo ra sẽ cần thời gian mới thể hiện rõ.
• Kết quả so sánh của mảng Đại lý ủy quyền tiếp tục bị ảnh hưởng bởi việc nhu cầu xe điện được đẩy sớm trong năm trước.

Tóm tắt phiên Hỏi & Đáp với chuyên gia phân tích

Ban lãnh đạo cho biết chiến lược dịch vụ của công ty tập trung vào việc thay đổi định kiến rằng các đại lý ủy quyền đắt hơn các xưởng sửa chữa độc lập. Sonic đang áp dụng chiến lược định giá cạnh tranh, quảng cáo mục tiêu và các công cụ định giá dựa trên AI để tăng số lượng đơn sửa chữa và tỷ lệ chuyển đổi đề xuất dịch vụ.

Công ty cho biết có thể bổ sung ngay lập tức khoảng 100 đến 150 kỹ thuật viên và có thể tuyển dụng thêm vài trăm người theo thời gian. Một số đại lý cũng đang xem xét cung cấp dịch vụ vào Chủ nhật để tăng mức độ sử dụng công suất.

Về biên lợi nhuận xe mới, ban lãnh đạo cho biết những thay đổi trong chế độ thù lao, kỷ luật định giá chặt chẽ hơn và quản lý tồn kho đã giúp ổn định GPU mà không làm mất thị phần hay giảm sản lượng bán hàng so với quý trước.

Đối với EchoPark, ban lãnh đạo xác định nhận diện thương hiệu, nguồn cung xe ngoài đấu giá và các sản phẩm phù hợp với xe điện cũng như xe chạy nhiều km là các ưu tiên vận hành hàng đầu. Một giải pháp bán lẻ kỹ thuật số diện rộng hơn đang được phát triển, với thông tin chi tiết dự kiến sẽ có vào năm 2027.

Ban lãnh đạo cho biết các quyết định thâu tóm sẽ tiếp tục tập trung vào giá trị chiến lược dài hạn thay vì các điều kiện ngắn hạn theo quý. Công ty nhấn mạnh mối quan tâm tiếp tục đối với các đại lý nhượng quyền xe sang, bao gồm Porsche, trong khi vẫn duy trì sự linh hoạt để mua lại cổ phiếu.

Toàn văn Biên bản Cuộc họp Báo cáo Kết quả Kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Good morning, and welcome to the Sonic Automotive Third Quarter 2026 Earnings Conference Call. This conference call is being recorded today, Thursday, October 29, 2026.

Presentation materials, which accompany management's discussion on the conference call can be accessed at the company's website at ir.sonicautomotive.com.

At this time, I'd like to refer to the safe harbor statement under the Private Securities and Litigation Reform Act of 1995. During this conference call, management may discuss financial projections, information or expectations about the company's products or market or otherwise make statements about the future. Such statements are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission.

In addition, management may discuss certain non-GAAP financial measures as defined by the Securities and Exchange Commission. Please refer to the non-GAAP reconciliation tables in the company's current report on Form 8-K filed with the Securities and Exchange Commission earlier today.

I would now like to introduce Mr. David Smith, Chairman and Chief Executive Officer of Sonic Automotive. Mr. Smith, you may begin your conference.

David Smith

Thank you very much, and good morning, everyone. Welcome to the Sonic Automotive Third Quarter 2026 Earnings Call. And as you said, this is David Smith, the company's Chairman and CEO. Joining me on today's call are our President, Jeff Dyke; our CFO, Heath Byrd; our EchoPark Chief Operating Officer, Tim Keen; and our VP of Investor Relations, Danny Wieland.

I would like to begin by thanking our exceptional teammates for their unwavering dedication to providing a world-class guest experience. Our relationships with our teammates, our guests, our manufacturer partners and lending partners are fundamental to our long-term success, and we are grateful for their ongoing trust and support for Sonic Automotive.

Earlier this morning, Sonic Automotive reported third quarter financial results, including all-time record quarterly revenues -- quarterly total revenues of $4 billion and all-time record quarterly gross profit of $617.5 million. Reported GAAP EPS for the third quarter was $1.28 per diluted share. Excluding the effect of certain adjustments detailed in our press release this morning, non-GAAP adjusted EPS for the third quarter was $1.30 per diluted share.

Beginning now with our Franchised Dealerships segment. Our stores performed well despite difficult year-over-year comparisons as a result of the pull forward in EV consumer demand during the third quarter of 2025. Reported Franchise revenues decreased 3% to $3.3 billion, while same store revenues decreased 2% year-over-year. Reported Franchised Dealerships Segment gross profit decreased 2%, while same store gross profit decreased 1%.

During the quarter, our team focused on optimizing new vehicle GPU, while maintaining market share. Third quarter reported new vehicle GPU was $3,048, up 2% year-over-year and same store new vehicle GPU was $3,000, flat year-over-year. Same store new vehicle unit volume was down 7%, largely due to higher EV exposure within our luxury brands and California stores.

We estimate the impact of last year's EV pull forward to have been approximately 2,200 additional new retail units sold in the prior year quarter, which combined with F&I on these vehicles drove a $5 million year-over-year decline in gross profit. Excluding the impact of these EV units, our new retail sales volume would have been flat year-over-year.

Third quarter reported used vehicle GPU was $1,500, down 2% and same store used vehicle GPU was $1,506, down 3%. Same store retail used vehicle volume increased 3%, driven by improving used vehicle supply and strategic focus on increasing used vehicle volume throughput as we progress toward our long-term objective of retailing an average of 100 used retail units per dealership per month, representing approximately a 20% organic volume growth potential from current levels.

In the face of industry-wide headwinds, we are proud of our fixed operations performance with reported gross profit increasing 2% to an all-time quarterly record of $265.4 million. On a same-store basis, fixed operations gross profit increased 1%, driven by a 1% increase in warranty gross profit and flat customer pay gross profit year-over-year.

To combat ongoing consumer affordability challenges, last quarter, we launched a value-priced service offering and expanded our service-based marketing strategy. As a result of these efforts, same store customer pay repair order volume was up 1% year-over-year and up 3% sequentially, and same store warranty repair order volume was up 4% year-over-year and 4% sequentially.

The increased customer traffic provides our stores with key customer touch points and opportunities to sell additional products and services at current or future visits, while indicating that our guests are not trading down out of the franchise dealer service lane to visit independent repair shops.

In the third quarter, F&I gross profit decreased 3% to $142.6 million on a reported basis, while same store F&I gross profit was flat year-over-year. Our team remains focused on maintaining high levels of F&I GPU and ended the quarter at $2,630 on a same store basis, an increase of 2% year-over-year.

Turning now to our EchoPark segment. Third quarter revenues increased 14% to $596 million and segment gross profit increased 8% to a third quarter record of $58.9 million. EchoPark retail used vehicle volume growth well outpaced the broader industry, increasing 22% to 19,923 units, reflecting continued consumer demand for our strategic value proposition, improvement in our non-auction sourcing mix and our teammates' strong execution in delivering an outstanding guest experience.

EchoPark total gross profit per unit was $2,972, down 12% year-over-year, driven by a 15% decrease in F&I gross profit per unit to $2,754, offset partially by a $96 per unit increase in used vehicle front GPU to $218. As discussed on our second quarter earnings call, the reduction in EchoPark F&I gross profit per unit is due in part to a greater mix of battery electric and higher mileage vehicles, resulting in lower warranty penetration rates and F&I profit per contract.

We are currently working with our F&I partners and store leaders to enhance our warranty and insurance product offerings for EVs and higher mileage vehicles. While our changes to inventory mix have impacted F&I GPU in the near term, we believe our inventory shift to meet consumer demand is a benefit to sales volume, consumer reach and future EchoPark growth potential.

EchoPark adjusted segment income was $2.6 million and adjusted EBITDA was $7.9 million, bringing year-to-date adjusted EBITDA to $40.4 million. For the fourth quarter, we expect adjusted EBITDA to be between $2 million and $4 million, including $5 million to $7 million in incremental brand marketing expense as we kick off our largest investment ever in building the EchoPark brand. Our team is excited to share this brand campaign publicly in the coming weeks.

We're also excited to announce that our new EchoPark location in the Orlando, Florida market, will open in December. In addition to this new store, we currently plan to open 2 to 4 new EchoPark locations in 2027.

Turning now to our Powersports segment. Revenues increased 35% to an all-time quarterly record of $113.7 million, and gross profit increased 26% to an all-time quarterly record of $29.3 million. On a same-store basis, Powersports revenues grew 8%, while gross profit decreased 1% year-over-year. Reported new retail unit volume increased 32%, while reported used retail unit volume increased 35%. On a same store basis, Powersports new retail unit volume increased 6% and used retail unit volume increased 1%.

Powersports reported F&I revenue increased 42% year-over-year to $4.7 million, with total F&I per unit up 8% to $1,148. Same store F&I revenue increased 6%, while same store F&I per unit increased 2%. Powersports adjusted segment income was $7.9 million, down 1% from the prior year period, and adjusted EBITDA increased 4% to $10.5 million.

I want to thank our teammates for their hard work in making this year's Sturgis Motorcycle Rally another record success. During the 86th Annual Rally, our team set a new sales record selling 1,135 motorcycles, including over 500 new Harley-Davidson motorcycles during the 10-day event. This achievement is a testament to Sonic's strategy of further diversifying our business by a nationwide network of Powersports dealerships.

As we turn to our consolidated results, our strong operating performance this quarter was partially offset by higher SG&A as a percentage of gross profit, which pressured our bottom line results. Our team is consciously making strategic long-term investments that we expect to drive future profitability and operational efficiency, but are not yet leveraging the investment. This includes applying AI across back-office functions, inventory management and fixed operations optimization, where we are already seeing benefits. By acting now, we are positioning the company to sustain its momentum, expand long-term profitability and remain agile in the face of changes in the industry.

With that said, we remain within our full year guidance range for SG&A as a percentage of gross profit, despite lower-than-projected fixed operations growth in the second and third quarters. To support this outlook, we remain focused on implementing certain targeted SG&A initiatives in the near term, while continuing to invest in our long-term strategic priorities.

Finally, turning to our balance sheet. We ended the quarter with approximately $585 million of total available liquidity resources, including approximately $201 million of cash and floor plan deposits. Our liquidity position and balance sheet capacity provide us with the flexibility to support our existing businesses, make targeted organic investments, pursue strategic acquisition opportunities and return capital to stockholders.

Given our current trading levels and the $528 million remaining under our share repurchase authorization, we believe share repurchases represent an attractive use of capital, and we are weighing share buybacks against several acquisition opportunities.

As we continue to execute our balanced capital allocation strategy, I'm pleased to announce that our Board of Directors approved a cash dividend of $0.41 per share payable on January 15, 2027, to shareholders of record as of December 15, 2026.

This concludes our opening remarks, and we look forward to answering any questions you have. Thank you.

Operator

[Operator Instructions]

Our first question comes from Alex Perry with Bank of America.

Phần hỏi đáp

Alexander Perry

I just wanted to dig in a little bit on the fixed ops business. So I think that the guide implies that maybe the fourth quarter you see a slight acceleration on same store gross profit comps. What is driving that? And what gets the fixed ops business back to that sort of mid-single-digit percent run rate? And when would you expect that to happen?

Frank Dyke

Alex, it's Jeff Dyke. I wish I had a crystal ball that could answer the when we expect it to happen. I think the fixed operations business over the last couple of quarters caught all of us a little bit off guard as we projected sort of mid to upper single-digit growth. Now that number is in the 3% range.

And I'd probably expect it to be around there, maybe a little better in the fourth quarter as we're focused on our value pricing and the things that we're doing in our service line to drive up our ASR penetration numbers, which range somewhere between 20% and 25%, but our best brands are running in the 30% to 35% range. So we've got some upside there in terms of execution. And I think we'll do a better job of that in the fourth quarter and in the coming year.

But to project that we're going to be back into that upper single-digit range in the first quarter, I think, would be a little bit off. But maybe as we get into the mid-summer months and into the back half of next year. And we're all scrambling to do a better job with our ASRs and in our closing ratios there.

Traditionally, we've been in that 20% to 25% range, which is a lot of opportunities, almost 1 million in the quarter for us. And we'll see how things go. But definitely, it's a big focus for the company. It's a big focus for the industry. And would expect a little improvement as we move into the fourth quarter and then certainly continuing that improvement as we move into next year.

Alexander Perry

Really helpful. And then maybe just to dig in on one part of that. The affordability concerns in the parts and service business, are you taking down price in some of the maintenance level work or even some of the complex work? I guess what initiatives are in place to drive the RO count? And then do you think there is share loss going on to some of the independents? Or what are you doing to maybe prevent share loss there?

Frank Dyke

Yes, there's no question we got too expensive in our service drive, and that's our value pricing program, and that's what we're doing across all of our stores. We're up 1% in RO count year-over-year, 3% sequentially. And I expect that to continue to grow as we drive more and more customers back into our stores.

I think about 50% of the car park is coming back to a dealer. That's traditional over the last few years. We've got the other 50% going to independents, and we need to bring those back to our dealerships. We've got the best facilities. We've got the best technicians. We've got the training, the tools, the equipment, OEM certified parts certified technicians. There's no reason for them not to come back to us. But we're fighting that image of high-priced service drives, and it's something we're all working on.

You'll see our advertising geared towards that. If you look at Sonic Automotive websites right now, you can see our value pricing on certain items that are driving customers back into our stores, driving RO count up. And that's a big opportunity for us. And we know it. The industry knows it, and we need to work on it.

It's also driving the warranty rates up, and that's something we all need to keep a close eye on, as that makes life more expensive for our OEM partners. Parts rates are high and costs are high and our OEM partners need to do a good job of bringing down cost and expense from a parts perspective.

But we all need to get that back in line. And as we do, we'll drive more customers back into our service drive, take share from the independents. And it's just not something that we're going to allow to happen. We'll battle that, and we've got all the assets to battle it.

Operator

Our next question comes from Jeff Lick with Stephens.

Jeffrey Lick

First question, I'm just curious, your new GPU definitely bucked the trend, your sequential improvement. Just curious if you could kind of elaborate on why you think your -- you guys are producing such a better result than your peers in Q3?

Frank Dyke

Because we had a call in -- coming out of Q2 with some of the FTC stuff that's going on and had a mindset change for our sales managers. And sometimes gross is a state of mind and we...

David Smith

It was a motivational call.

Frank Dyke

It was a motivational call, and we got our margins where I think they need to be. And we sell a great product with great services and amazing CSI for our customers. And we're just not going to -- we're not going to give cars away. And the great news is we held our market share. So we were able to contain market share and hold on to our margin, grow our margin a little bit. And I expect that to continue, which is why we're narrowing our range there in terms of our front-end margin number for the year.

Jeffrey Lick

You mentioned the FTC. How did that manifest itself into maybe helping, or driving the strategy with the new grosses?

Frank Dyke

Yes. I mean I think that it's making everybody play from the same cheap music. And I don't think everybody is doing it yet. And I think third-party lead providers need to get involved and do the right thing and not allow people who are playing games to be on their websites.

But it's making everybody play by the same rules. And so you don't have all these games. And it's going to take some hand slapping going on. I don't think the punishments have been strong enough yet, but it's going to take some hand slapping going on to get everybody's attention that the FTC means business.

And as that happens, I think margins will level out and things will get there. We just weren't going to let that play a role in our world. It didn't -- And we're going to let some of the games going on -- that were going on out there, change the mindset of our team and the margins that we know we deserve to make. And so we made that a conscious effort, and it certainly helped in the quarter.

Jeffrey Lick

And a quick follow-up on SG&A, franchise SG&A, 75.6% of gross. Just obviously, you guys are smaller. So if there's an extraordinary item that hits you, sometimes it hits you guys a little more given that you just -- you're amortizing that over a smaller gross base. But could you elaborate a little bit on what's going on there and what would be the fixed?

Heath R. Byrd

Yes. This is Heath. I'll answer that. You're right, it actually is sort of the law of smaller numbers. So basically, $5.5 million, $6 million equals 100 basis points. And if you look at the year-over-year for Q3, the real drivers were service loaners, gas inflation. So a lot of the things that are related to the customer. And, so that is something that we are focusing on. But again, we don't want to sacrifice the customer experience. But that alone was driving almost 100 basis point -- yes, 100 basis points.

And then we've got some incremental spend in the IT world of about $2 million that happened in the quarter that is related to our AI initiative, and we're already seeing dividends from that. We're about 8 months into our journey and really amazed at what we can do with that from a standpoint of efficiency. And so we think that's good investment. It's going to end up in what we think can be a material reduction in SG&A going forward.

Jeffrey Lick

Maybe in the spare time you get Danny out there washing cars and picture, take some SG&A down.

David Smith

We already did that.

Heath R. Byrd

Another interesting thing about this quarter that was a little bit higher than expected is travel. And it's back -- to Jeff and David's point earlier, we're getting our leaders out there in the stores that are not performing at the level we want. So travel was up a little bit that drove some of that SG&A for this quarter as well.

Operator

Our next question comes from Rajat Gupta with JPMorgan.

Rajat Gupta

I wanted to ask on F&I. Are you seeing any kind of pullback, or I would say, a little more caution from consumers when it comes to just product attach rate? I'm just curious with just more proliferation and use of AI tools, are consumers just looking to optimize their spend a bit more, like what kind of warranty they want to attach, et cetera?

And the same thing on the service side, are they optimizing the kind of service work they want to do a little more than they used to? Just curious if there's any feedback around that? And I have a quick follow-up.

Frank Dyke

Rajat, it's Jeff. We had a little bit of drop-off in our penetration rates coming out of the second quarter and the first part of the third quarter, but it's back up now, 1.8 to 2.0 products per car sold. So now -- I mean, we had a very good F&I month on the franchise side, I think, up just a little bit and a record third quarter in F&I. So I'm not seeing that.

We'd be crazy not to think that, that's not going on in our fixed operation service drives. That's definitely part of all of this. There's a lot more information available right at your fingertips and very specific information. And we've got to do a better job of communicating, the -- like I was talking about earlier, the great values that we provide in our service drive.

We're beginning to see that. We're driving some more customer pay RO count, which is incredibly important. And I expect that to continue as we move forward. We're going to be just as good or better in using our AI tools that Heath was talking about, and some of the investments that we're making.

As a matter of fact, we're launching some pricing stuff for fixed operations this next week or the week after, that we think are going to help drive more RO count for the stores. So all that's AI-driven. And so more to come. I think we'll have a lot more story to tell from a pricing perspective, value service and those things as we move sort of out of this year and into the first and second quarters of next year.

David Smith

And then, is this -- sorry, I was just going to say that -- this is David. So we understand the perception versus reality problem that we have in our -- that's an industry-wide thing. We just kind of -- we've got to communicate that, as J.D. was saying, to our customers so that they feel confident and feel good about coming back to our stores for service, versus how many of them feel like that they are making a smart decision to go maybe elsewhere into an independent dealer. And when a lot of times, the reality is no, they would actually be making a smarter decision to come to our stores.

Heath R. Byrd

And Rajat, this is Heath. Just to add, overall in the franchise, we were actually up in warranty penetration. So that still shows the demand there. If you look at EchoPark, we have a mix issue there. We -- There's more EV mix and there's more older age vehicle mix there. And so getting the right products to market for them is really the key, and we just implemented some new products so that we can actually help that penetration degradation that we have seen at EchoPark because of the mix we're selling now.

Frank Dyke

Yes. We have an EV warranty that we've launched and a high mileage warranty that we've launched for EchoPark. Those products are launched this month, and we're already seeing nice penetration on the vehicles. So we expect that to be able to curb some of that and grow our front-end margin. We're buying cars better. And so I think all that plays well for EchoPark.

And as new car pricing keeps going up and up and up and the gap widens, which is historically high now between pre-owned and new, that's a grand slam home run for EchoPark. It's just really going to be a lot of fun to watch the growth. And I think you're seeing that 22% growth in the third quarter. That growth mix is a lot of fun to watch.

And you saw it in the industry. We're seeing it in many brands and in different pockets across the country. And I think that's going to continue to happen as we move into next year.

Rajat Gupta

Understood. That's all very helpful color. And just wanted to follow up on capital allocation. Clearly, the backdrop looks a little choppy. There is some uncertainty in parts and service, the recovery trajectory there. some choppiness in F&I and just like a pretty flattish, I would say, backdrop.

I'm curious like how you're weighing any capital allocation, be it even buyback or M&A against that backdrop. Would you prefer to wait for a few more quarters of visibility before deploying capital? Or are you just finding attractive opportunities, at least on the M&A side that might warrant you to just deploy that sooner?

David Smith

Yes. Thank you. This is David. Well, as you know, the acquisition opportunities as we evaluate those and you look at the growth of Sonic over the last, nearly 30 years, there's opportunities to acquire some fantastic stores, are not -- they just don't come around if you -- every quarter or you got to make -- we've got to make long-term investment decisions, not quarter-to-quarter.

So I think that's the biggest thing. So as we look at potential acquisition opportunities, that's the mindset that we're going to have. And so -- and then as we said, opportunistically, we bought back, I think, around 11 million or so shares over the last several years. So we'll look at all of it. And -- but I think that as an investor in our company, you got to think long term. And so I think that's the main focus that we have.

Operator

Our next question comes from Brett Jordan with Jefferies.

Patrick Buckley

This is Patrick Buckley on for Bret. On parts and service, you called out increased technician headcount in the slides. Are there any metrics you can share on that front? Or I guess, how much do you think is left to close the gap to full capacity levels?

Frank Dyke

Gosh, we could hire a couple of hundred technicians. We've got the capacity in the stores. That's something that we're focused on. You don't want to hire them too fast, right, because bringing in, getting into our culture, our process, the way we do things. We've got a lot of our stores now exploring Sunday service, which many of our shops over the years have been closed on Sunday.

Our Toyota brand has really been exploring that. So we've got capacity, and we could bring another 100, 150 techs on tomorrow. No question. So there's plenty of room there. And we're going to need them as we drive our value service proposition and bring more and more customers in the car park back into our service drives.

And again, there's 50% of the customer -- It depends on the brand. Some brands higher than others. But on average, about 50% of the car park does not come back to a dealership post 2 or 3 years to service their vehicle. And we're working on bringing those customers back in and providing them the experience that they're only going to get at a Franchised Dealership.

Patrick Buckley

Great. Got it. And then on the Powersports side, how has demand there held up compared to light vehicles? Any pullback or signs of trade downs due to affordability issues? Or has that more lifestyle type of purchase held up a little better?

Frank Dyke

It's held up great. That group is on fire. We've had so much fun watching them grow that business and put our technology, our processes and disciplines into the business. It's just great. Now we gobbled up a lot of stores, and we're running and operating and getting them up to speed. And then once we get that breadth and that handle, we'll go and gobble up some more. But it's fun to watch them. We brag on them every day around here how well that leadership team is doing and those stores are performing. And there's no -- there's been no sign of slowdown there.

David Smith

And there's so much opportunity in that -- in the powersports industry. We're learning more and more about it. And if you look at our Powersports gross profit and our front gross, if you apply that across the board to our entire company, it would -- the numbers would be [indiscernible] to the industry. Would be really outstanding. So there's a lot of opportunity.

Operator

Our next question comes from Daniela Haigian with Morgan Stanley.

Daniela Haigian

My first one is on EchoPark. You mentioned you're planning to enter Orlando, launching a new brand campaign. How should we be thinking about the economics of this next phase of expansion? Are these new markets achieving the same volume and profitability as your established locations? And what milestones should we be tracking to assess returns on incremental investment?

David Smith

One of the things -- this is David -- I would say is that I think our team is getting a lot better about the investment that we're making in our -- in additional stores, and we're being creative on getting the cost down. I think that's a big part of it. I think there's a lot of capacity in our existing EchoPark stores for growth.

And we're -- we've found that in markets where people -- where the consumers are aware of EchoPark, we have tremendous volume. So with our new -- we wish we could tell you about it today, but we will be announcing some things coming soon, but I think we will dramatically increase the awareness in the -- in our -- even in our existing markets and our -- in the new markets we're coming to of the EchoPark brand, that should have a huge impact on the business.

Frank Dyke

And that -- this is Jeff. That capacity is not another 50 cars a store a month. It's more like 200, 300 cars a store a month that we have the capacity to do in our existing footprint. And yes, we expect Orlando to get started. We used an old Cadillac property that we had there. So we got into that facility nice. And absolutely, we expect it to get up to speed really quick. Orlando is a fantastic pre-owned market, and we've got a lot of experience in that market.

So we'll get in there and do a great job and sell a bunch of cars. And then we're going to have some really exciting stuff, not only from a spokesperson perspective, but we've got some new things coming for EchoPark that we're very excited about, that hopefully we'll be able to talk about in the first quarter, that will hopefully enhance and expand the speed and efficiency in which we grow EchoPark.

So we've got a lot of neat things coming. We feel like we've got our arms around the brand. We've got it headed in the right direction. And so we've called out, we're going to have some more spend this quarter. You expect that, and you can put that into your models. And that's not going to go away in the first quarter.

We're going to continue to really invest in this brand. We've made it through the difficult times, and we've got our arms around it, and we're getting ready to push on the accelerator. And let's see what EchoPark can do in this fun used car economy.

Heath R. Byrd

And this is Heath. I'll add on that brand spend. As Jeff mentioned, you're going to see that spend continuing and the benefit of that in getting that to show through our financials is looking at the end of the next year. You got to give the brand time to -- where everyone is aware of it.

And we've said over and over, we're objectively the lowest price of anyone in the market. We're objectively the best customer experience for as good or better product of car. The one missing part is awareness. And so we're excited about what this brand can do for us.

Frank Dyke

We guarantee you'll know the spokesperson.

David Smith

Yes. And just taking the opportunity to thank and congratulate our team again on achieving the #1 guest experience in our industry where they just recently -- it was announced by reputation.com for our EchoPark Automotive team. It's just outstanding. They just -- they're repeatedly ranking #1 in the industry.

Daniela Haigian

That's great. I appreciate the answer and looking forward to that update in the first quarter. My second question was on SG&A. You talked about how you're implementing some initiatives even with some of this lower fixed cost outlook for the fourth quarter. Can you speak a little bit more what are some examples of things you've implemented here, whether it's AI or otherwise to improve the operating leverage in the business?

Frank Dyke

Yes. One is we're going to reduce the level of loaner cars that we have in this organization, and that's -- that started last month, but it takes a little bit of time for that to all flow through. And it's a big expense in the company. If you look in detail, it's $3.5 million, $4 million a month in the company.

So we're going to take a big chunk there while still keeping up our great guest experience, just being more efficient and effective with our loaner car process. It's going to take time, like I said, for that to flow through, maybe through the fourth quarter. And then you'll see those reductions showing up in Q1 as we get some of that inventory sold.

And then we're making other adjustments, whether it's personnel, from an AI perspective, compensation plans, to be a little more variable than maybe some are. They're just -- all the things that you would typically focus on as you move through an environment like this where a few million dollars make a huge difference, especially from the size of our company. We'll continue to focus on that, and we'll bring our SG&A down and in line.

But it's not going to be material in the fourth quarter, more along the lines of the changes that we're making and the adjustments that we're making today are going to show up in Q1. And we'll let that happen and hopefully continue the great record-setting gross and volume that we're having along with maintaining our margin. You're working on both sides of the table, and we'll bring those two things together and bring our SG&A as a percentage of gross down.

Heath R. Byrd

Yes. And from an AI perspective, as Jeff mentioned earlier, we're rolling out those initiatives starting in the fourth quarter. A lot of them are related to increased growth. So we're looking at the fixed pricing.

We're looking at inventory pricing as some of the big things we're rolling out in the field. Currently, we have multiple automations in the back office and the savings to date on the bots and the AI that we're implementing in the back office is about $2.6 million year-to-date, and we've just begun that rollout. So we expect incremental savings from that as well.

Operator

Our next question comes from Rob Saltzman with UBS.

Robert Saltzman

Just firstly, I know it's a little early, and you gave some helpful thoughts on the fixed ops side for '27. But I was hoping you can maybe provide some additional high-level thoughts on the puts and takes for the Franchise segment as we head into next year and just how you're thinking about the business overall there?

Frank Dyke

Well, we're not going to come out and say 1% to 3% growth. I just can't -- that's not going to happen. Unfortunately, that 3% number is probably going to -- that's where we're going to probably be around, and maybe hopefully a little better as we move through the quarter. But sort of somewhere in that mid-single-digit range probably is where we'll be. Maybe we push our stores from a budgeting perspective into the 5% to 7% range, maybe 8%, depending on what I can -- how far I can push them. But it's certainly -- our expectation is not to be growing in the 1% to 3% range.

Heath R. Byrd

And I'll add, again, back on the AI thing. From my perspective, the fixed ops is the biggest opportunity for AI to help with throughput efficiency, which obviously is going to have an impact on gross and SG&A.

Frank Dyke

Our ASR process, if we can increase our closing percentage and drive more customers in, we have got ample opportunity with the customers that we have already in our service drive. But we're going to drive through value pricing. We're going to -- we know we can do that, and we're going to drive more customers through.

We're going to focus our ad dollars in and around the value of -- for the customer in our service drives. That's something that we here at Sonic Automotive and the industry needs to work on. And you'll hear -- I'm suspecting you'll hear it from the industry, you're certainly going to hear it from us in our marketing efforts as we move through '27.

Robert Saltzman

And then just one follow-up. You have that goal in the Franchised Dealerships to get 100 retail used vehicles per store per month. Can you just walk us through the path to getting to that 20% improvement in retail used vehicle volume throughput per store, particularly in what remains a difficult used vehicle sourcing environment?

Frank Dyke

Yes. We walk through it every week. It wasn't that long ago, we were at 110 -- 107 used vehicles per store per month. And the gap between new car pricing and pre-owned pricing and as leasing comes back and more availability of product comes back, the walk -- to walk to 100 for us is easy. We've just got to fill a couple of holes, and we're going to get that number.

We should be beyond that. And I feel like I'm talking on our weekly huddle call to all of our general managers. And we've got plenty of brands that are well beyond that, Honda, Toyota, Mercedes, BMW, all of them well above the century mark. And we'll get the other ones there, too, and accomplish that goal as we come up into this calendar year.

Operator

Our next question comes from John Babcock with Barclays Bank.

Unknown Analyst

This is Aaron on for John. Just a quick question on the EchoPark performance. So I know that competition has intensified a bit on the used side. So just kind of curious, especially with the tightness in the market, how you're positioning there and then how you're enhancing the digital experience?

Frank Dyke

I mean we've got such huge upside, obviously. There's 2 or 3 of us sitting out there that are single-only used car dealers. And we're growing -- we grew 22% last quarter, plenty of opportunity in front of us. It doesn't mean we're not going to have some quarters lower, some quarters higher, but the overall trend. And you see what we're doing, we're getting ready to make a huge all-time investment in EchoPark for -- to bring awareness about us.

Our awareness is really low as a percentage, maybe 13% in the markets that we do business in. And so that's been one of the big boat anchors for us. We're fixing that. We're getting ready to tell the world who we are. And we want people to come experience the -- come into our stores and experience what EchoPark is all about. And we are working on a digital retail solution for EchoPark, among other things within our business segment on the franchise side.

And that digital retail solution is something that we hope to begin to launch pieces of it as we move into next year, probably in the summertime. And that's a sneak peek. We'll give you a lot more data on that and launch dates for our digital retail solution as we move into the second quarter. And we'll get you guys a lot more up to speed on where -- but we've been making an investment in digital retail for the last year. And hopefully, we'll have something to launch as we move into the back half of next year.

Heath R. Byrd

And this is Heath. Just to add, from an operational perspective, the keys to our profitability are that mix where we're acquiring vehicles, and we continue to increase the non-auction vehicles, and that's a huge impact on our profitability. So we're going to continue to find ways to increase that. And then secondly, finding the F&I products that fit the mix. And those are the 2 operational things that are really going to be a focus going into the fourth quarter into 2027.

Frank Dyke

And as we launch in November, our brand spend -- you listen to the messaging, and that will kind of give you a path on where everything is headed.

Unknown Analyst

Got it. Super helpful. And then just curious what you're seeing on the brand side. I know there's some concern on the -- for some of the domestics heading into the quarter. So just anything you're seeing there, especially as we head into luxury sales season?

Frank Dyke

No. I mean, quite to the contrary, I'm very excited about it. The -- I probably spent as much as anybody with our manufacturers and going around and looking at the new products that are being developed, how excited they are about the future and what's going to happen over the next few years.

The products that are coming are amazing. I don't care which BMW, Ford, Lexus. We've seen it all. Land Rover is just going to be amazing and...

Heath R. Byrd

Audi's announcement...

Frank Dyke

Yes, Audi's announcement was just huge. Congratulations to them on manufacturing cars in the U.S. and just drove the all-new Q9. It's amazing vehicle. And so I couldn't be more excited about what the manufacturers are doing, the products that they're developing, the technology that's in the products.

So it's like now we're starting to drive our iPhones, right? And so a lot of fun, lots of horsepower. And then the power plants are great, too, whether it's ICE vehicle or battery electric or hybrid. They're coming with just amazing product, amazing technology. And it's pushing the prices up, which is fine. Let it do that because it drives the used car business, which is also great for us. It's kind of playing into our hand.

And I think we're going to have a great holiday selling season. December is always just amazing around this company. And there's no reason for me to believe -- over 20-some-odd years here, there's no reason to believe that this December would be any different. And so looking forward to getting there next week and rocking and rolling and getting October done, and it's going to be a great fourth quarter.

Operator

Our next question comes from Chris Pierce with Needham & Company.

Christopher Pierce

Can you just kind of walk me through -- I think the midpoint of the original EchoPark guide was $30 million in February. And I just want to kind of understand what's kind of surprised you? What's kind of -- how we sort of landed where we're landing now? I think units maybe are ahead, but F&I is worse on the EV mix. So just kind of -- and then how do we think about it into next year as there's more EVs coming off lease? And I know you've got new products, but like what if you have more EVs but lower attach? Like how do you kind of put those pieces together?

Heath R. Byrd

Well, I think like we said earlier, that finding the right products for the EV and the higher aged vehicles is a key, and we're working with our partners to do that. So that's going to be a key going into the next year.

Frank Dyke

Yes. And I also think while there's still upside on the F&I, especially with the EVs, there's even more upside on the front-end side as we continue to procure cars non-auction. So we're looking at it more round package than just one or the other.

Heath R. Byrd

And we also think that the branding is going to help us on the front-end side. There's going to be brand equity that we can get with that brand.

Frank Dyke

And the other thing that you need to think about is all those third-party service departments out there don't think that EchoPark might not jump into the water and have some fixed operations opportunities as well with the great experience that we have and that we can provide. I'm telling you, there are a lot of things coming with this brand because of the experience that we provide and as we launch this brand, a lot of fun things that we're going to do with it and more news on that as we move into next year.

David Smith

A good example is in the Atlanta market since we did the naming rights deal at EchoPark Speedway and have seen the impact that's made on -- even if you just look at our Atlanta store, right? I mean the impact has been incredible.

Frank Dyke

The volumes more than doubled in Atlanta from that signal. And it just shows the lack of awareness that we had prior.

David Smith

So as customers find out about us, that will absolutely help our grosses, so -- and volume. So it's going to be exciting to see. We're all sitting here smiling because we want to tell you some more of the things we're working on, but we'll have some announcements coming soon.

Frank Dyke

That just put a muzzle on me.

Heath R. Byrd

And like you said, the increase of inventory coming back just plays into our hands for EchoPark. It's each year that, that inventory availability increases is just going to help us grow.

Christopher Pierce

Okay. Perfect. And then one on the new side. Is it correct that Porsche has been sort of an underpenetrated OEM for you guys and the Walnut Creek acquisition sort of -- is there -- and as the brand sort of maybe goes through some challenges, is that something we should think about as an opportunity where some other luxury OEMs you maybe don't have as much of like acquisition opportunities on the table?

David Smith

I'm not sure if I -- what did you -- could you say the question again, please?

Christopher Pierce

Sure. Is Porsche sort of an underrepresented brand within the Sonic umbrella versus like BMW and Mercedes, where it's harder to sort of find stores to acquire given you're already like larger geographic footprint? Or is that sort of not the right way to think about it?

Frank Dyke

The right way to think about it is Porsche is an underserved brand in every retailer out there. We take as many Porsche points as we can get. The acquisition that we were fortunate enough to make in Northern California is the first one we've made in, gosh, 15 years, something...

David Smith

Starting this year, been there 20 years.

Frank Dyke

And we buy more -- you got to be green to buy. We are, and we buy more tomorrow as they come up. It's an amazing, amazing brand. And as we build out our luxury footprint across this country, it's a desire to grow with all of our luxury brands. And so we're -- the way I look at it is we're underserved in all of them, and there's plenty of opportunities.

David Smith

I mean, as I mentioned earlier, the long-term investments, we know that our Porsche manufacturer partners, the Porsche brand is a fantastic long-term investment. So we are very excited about it. And as J.D. said, we get some more opportunities to add more Porsche stores. And there's many other manufacturers that we very eager to receive those calls. So we were excited when we were able to do that deal in the Walnut Creek. And it was -- so far, it's been a fantastic -- The performance has been amazing so far.

Frank Dyke

When you think about Audi, they've had a rough run here, but we haven't blinked on that brand. We know they're going to be strong. And now look, they're coming with a huge investment in Georgia, and that's going to help with the tariff situation. And so you can't take a short-term look on these great luxury brands. They've been around forever, and they're going to be around forever, and we're just excited to be a part of their growth plan.

Operator

[Operator Instructions] Our next question comes from Michael Ward with Citigroup.

Michael Ward

These motivational discussions you had with your managers, did that result in lost sales? Or was it brand specific? Were there people discounting too much? What was the reasoning behind that? And was that a conscious effort?

David Smith

I think we mentioned earlier, the market share is something that our team, we really focus on as much as our guest experience. And I think it's a fantastic metric that we still hit our market share numbers, while also increasing our gross profit.

Frank Dyke

Yes. And if you noticed coming out of the second quarter, Michael, everybody's margins were dropping off $150, $200, $300 a car. And we just are going to -- weren't going to allow. And it was happening across the board. And we -- if you keep letting that happen, you're going to keep giving -- margin is not going to -- it's going to keep going down further and further.

So we drew a line in the sand and made some adjustments to compensation plans across multiple positions. And we've all been together for a long time. We have very little turnover in this company. And we called upon our team to step up and to hold their margin and they did, and they're doing it in October. It's not -- that's not changed.

It's not -- it wasn't a 2-month whim. We just saw a trend and one that really bothered me, Jeff Dyke personally. I just couldn't understand why we would allow that to happen because that's what's going on in the rest of the world. We have such a great experience in our stores. And we just made it up in our mind that that's not -- that wasn't going to happen, and it's not going to happen. And our team...

Michael Ward

It was not brand specific.

Frank Dyke

Absolutely not. It was across the board. I will tell you there were some brands that did a better job than -- Our Honda brand just really did an amazing job. And I think our brand structure and the way we're structured as an organization versus a regional structure really helps because we can call on those brand leaders to get in there and get that job done. But it was -- motivation is a good way to say it. It was a good motivational moment in our company, and we got the message across, and it's paying off for us.

Danny Wieland

And Mike, this is Danny. On the trade-off of volume versus GPU, we were essentially flat in new volume from 2Q to 3Q. And if you take out the 2,200 incremental EVs we sold last year, we were actually up year-over-year on a same-store basis ex EV. So we've done a really good job of maintaining the market share and the volume piece of it, but just really looking at optimizing how do we price relative to market, how quickly do we turn inventory and what can that do to drive both the volume and the GPU support.

Michael Ward

Yes. And it sounds like it could be the new world order just because if we're dealing with tighter inventories and particularly when you're getting to the end of the model year, and you don't have that excess fluff to get rid of. And -- So it sounds like it's a new world order. And so...

Frank Dyke

It is a new world order. I mean, we had -- we have the right day supply. The FTC deal really kind of was a disruption in the world and made everybody -- a lot of the competitive set start doing the right thing. Now not everybody is doing the right thing. I want to be clear on that. But we're not going to let our stores compete against that and drop margins just because we're going to do a great job and hold ourselves accountable and make the margin that we deserve to make.

And we're going to count on the FTC to do their job and hold people who aren't doing the right thing accountable. And that's an important piece of this puzzle so that we put that behind us, and we once and for all get rid of the transparent pricing discussion with our industry and just move on. It's time for that to happen, couldn't be more supportive of it. And all -- the whole world needs to play ball the same way. But we're not giving our margin up because of that. That's just not happening.

Operator

We have reached the end of the question-and-answer session. I'd now like to turn the call back over to David Smith for closing comments.

David Smith

Thank you, sir. Thank you, everyone. We will speak to you next quarter.

Operator

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.