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Revenue Recognition
 6 Months Ended
Jun. 30, 2022
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 June 30, 2022Six Months Ended June 30, 2022
Vehicle SalesFleet ManagementTotalVehicle Sales
Fleet Management
Total
Retail vehicle sales$59,211 $— $59,211 $109,799 $— $109,799 
Wholesale vehicle sales13,949 — 13,949 22,524 — 22,524 
Finance and insurance, net$3,196 $— $3,196 6,900 — 6,900 
Lease income, net— 137 137 — 283 283 
Total Revenues$76,356 $137 $76,493 $139,223 $283 $139,506 
Three Months Ended June 30, 2021Six Months Ended June 30, 2021
Vehicle SalesFleet ManagementTotalVehicle Sales
Fleet Management
Total
Retail vehicle sales$44,230 $— $44,230 $94,613 $— $94,613 
Wholesale vehicle sales4,660 — 4,660 9,228 — 9,228 
Finance and insurance, net$1,780 $— $1,780 3,334 — 3,334 
Lease income, net— 98 98 — 205 205 
Total Revenues$50,670 $98 $50,768 $107,175 $205 $107,380 
The following table summarizes revenues and cost of sales for retail and wholesale vehicle sales for the periods ended:
Three Months Ended June 30,
Six Months Ended June 30,
2022202120222021
Retail vehicles:
Retail vehicle sales$59,211 $44,230 $109,799 $94,613 
Retail vehicle cost of sales59,502 41,641 111,917 90,558 
Gross Profit – Retail Vehicles$(291)$2,589 $(2,118)$4,055 
Wholesale vehicles:
Wholesale vehicle sales$13,949 $4,660 $22,524 $9,228 
Wholesale vehicle cost of sales15,509 4,945 24,030 10,632 
Gross Profit – Wholesale Vehicles$(1,560)$(285)$(1,506)$(1,404)
Retail Vehicle Sales
The Company sells used vehicles to retail customers through its 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. Additionally, the Company sold or will sell vehicles that were at the closed hub locations through the wholesale channel that may not have been sold through the wholesale channel if the hubs had remained open.
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.