XML 25 R11.htm IDEA: XBRL DOCUMENT v3.22.2.2
Revenue Recognition
 9 Months Ended
Sep. 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 September 30, 2022Nine Months Ended September 30, 2022
Vehicle SalesFleet ManagementTotalVehicle Sales
Fleet Management
Total
Retail vehicle sales$32,545 $— $32,545 $142,344 $— $142,344 
Wholesale vehicle sales16,357 — 16,357 38,880 — 38,880 
Finance and insurance, net$1,691 $— $1,691 8,591 — 8,591 
Lease income, net— 245 245 — 528 528 
Total Revenues$50,593 $245 $50,838 $189,815 $528 $190,343 
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 
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,
2022202120222021
Retail vehicles:
Retail vehicle sales$32,545 $56,284 $142,344 $150,897 
Retail vehicle cost of sales32,141 56,584 144,058 147,142 
Gross Profit – Retail Vehicles$404 $(300)$(1,714)$3,755 
Wholesale vehicles:
Wholesale vehicle sales$16,357 $8,989 $38,880 $18,217 
Wholesale vehicle cost of sales19,288 9,433 43,317 20,065 
Gross Profit – Wholesale Vehicles$(2,931)$(444)$(4,437)$(1,848)
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 12-month/12,000-mile limited warranty included in most retail vehicle sales is not treated as a separate performance obligation given the nature of the limited warranty is to provide assurance as to the quality of the vehicle being sold.
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/return policy allows customers to initiate an exchange/return of a vehicle during the first seven days or 400 miles after delivery, whichever comes first. An exchange/return 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.