Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 4 — GOODWILL AND INTANGIBLE ASSETS, NET

During the nine months ended September 30, 2025, the Company separately acquired two franchise dealerships for total purchase consideration of $51 million, comprised of $27 million in cash and $24 million in trade vehicle floor plan payables. The purchase price was allocated to net tangible assets of $36 million, indefinite-lived franchise rights of $12 million, and goodwill of $3 million, which is deductible for tax purposes. The acquisitions were not material to the Company's financial condition or results of operations.

The following table summarizes goodwill and intangible assets, net as of September 30, 2025 and December 31, 2024:


	September 30, 2025		December 31, 2024

	(in millions)

Customer relationships	$	50	$	50
Developed technology	31		41
Franchise rights	12		—

Intangible assets, acquired cost	93		91
Less: accumulated amortization	(58)		(57)
Intangible assets, net	$	35	$	34

Goodwill	$	3	$	—

Amortization expense was $3 million and $4 million during the three months ended September 30, 2025 and 2024, respectively, and $12 million and $13 million during the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the remaining weighted-average amortization period for definite-lived intangible assets was 2.4 years. The anticipated annual amortization expense to be recognized in future years as of September 30, 2025 is as follows:


	Expected Future Amortization
	(in millions)
Remainder of 2025	$	3
2026	7
2027	5
2028	3
2029	2

Thereafter	3
Total	$	23