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Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue
The significant majority of the Company’s revenue is derived from contracts with customers related to the sales of vehicles. In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. The Company has determined that these categories depict how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.
The tables below include disaggregated revenue under ASC 606 (Revenue from Contracts with Customers):
Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
Vehicle SalesFleet ManagementTotalVehicle Sales
Fleet Management
Total
Retail vehicle sales$56,284 $— $56,284 $150,897 $— $150,897 
Wholesale vehicle sales8,989 — 8,989 18,217 — 18,217 
Finance and insurance, net$2,639 $— $2,639 5,973 — 5,973 
Lease income, net— 129 129 — 334 334 
Total Revenues$67,912 $129 $68,041 $175,087 $334 $175,421 
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Vehicle SalesFleet ManagementTotalVehicle Sales
Fleet Management
Total
Retail vehicle sales$26,694 $— $26,694 $71,388 $— $71,388 
Wholesale vehicle sales2,088 — 2,088 7,124 — 7,124 
Finance and insurance, net$910 $— $910 2,697 — 2,697 
Lease income, net— 101 101 — 373 373 
Total Revenues$29,692 $101 $29,793 $81,209 $373 $81,582 
The following table summarizes revenues and cost of sales for retail and wholesale vehicle sales for the periods ended:
Three Months Ended September 30,
Nine Months Ended September 30,
2021202020212020
Retail vehicles:
Retail vehicle sales$56,284 $26,694 $150,897 $71,388 
Retail vehicle cost of sales56,584 24,177 147,142 65,723 
Gross Profit – Retail Vehicles$(300)$2,517 $3,755 $5,665 
Wholesale vehicles:
Wholesale vehicle sales$8,989 $2,088 $18,217 $7,124 
Wholesale vehicle cost of sales9,433 2,040 20,065 7,082 
Gross Profit – Wholesale Vehicles$(444)$48 $(1,848)$42 
Retail Vehicle Sales
The Company sells used vehicles to retail customers through its 18 retail hub locations. The transaction price for used vehicles is a fixed amount as set forth in the customer contract, and the revenue recognized by the Company is inclusive of the agreed upon transaction price and any service fees. Customers frequently trade-in their existing vehicle to apply toward the transaction price of a used vehicle. Trade-in vehicles represent noncash consideration, which the Company measures at estimated fair value of the vehicle received on the trade. The Company satisfies its performance obligation and recognizes revenue for used vehicle sales at a point in time when the title to the vehicle passes to the customer, at which point the customer controls the vehicle.
The Company receives payment for used vehicle sales directly from the customer at the time of sale or from third-party financial institutions within a short period of time following the sale if the customer obtains financing.
The Company’s exchange policy allows customers to initiate an exchange of a vehicle during the first three days or 500 miles after delivery, whichever comes first. An exchange reserve is immaterial based on the Company’s historical activity.
Wholesale Vehicle Sales

Vehicles that do not meet the Company’s standards for retail vehicle sales, vehicles that did not sell through the retail channel within a reasonable period of time and vehicles that the Company determines offer greater financial benefit through the wholesale channel are sold through various wholesale methods. The Company satisfies its performance obligation and recognizes revenue for wholesale vehicle sales when the vehicle is sold at auction or directly to a wholesaler and title to the vehicle passes to the next owner.
Finance and Insurance, net
The Company provides customers with options for financing, insurance and extended warranties. Certain warranties are serviced by a company owned by a major stockholder. All other services are provided by third-party vendors, and the Company has agreements with each of these vendors giving the Company the right to offer such services.
When a customer selects a service from these third-party vendors, the Company earns a commission based on the actual price paid or financed. The Company concluded that it is an agent for these transactions because it does not control the products before they are transferred to the customer. Accordingly, the Company recognizes finance and insurance revenue at the point in time when the customer enters into the contract.