AN
AutoNation, Inc.
Is AN Halal?
Auto retailer — vehicle sales are permissible, but finance-and-insurance income and a captive lender raise riba concerns.
What You Should Know
AutoNation sells and services vehicles through its dealership network and operates AutoNation Finance. Its March 31, 2026 Form 10-Q reports assets of $14,623.3 million, interest-bearing debt of $6,301.5 million, cash of $65.5 million, auto-loan receivables of $2,371.2 million and other receivables of $829.2 million. Debt/assets is 43.10%, liquidity/assets is 16.67% and receivables-plus-cash/assets is 22.34%; the debt screen fails. Finance-and-insurance revenue is $352.0 million, or 5.37% of quarterly revenue, a conservative proxy for structural finance activity.
⚠️ Concerns
- •Debt/assets is 43.10%, above examined 33% limits
- •Finance-and-insurance revenue is 5.37% of quarterly revenue and includes interest-bearing lending
- •AutoNation Finance and vehicle floorplan financing are structural business activities
- •The $352 million finance line includes fees and is a conservative proxy, not pure interest income
- •Re-screen before each purchase as the finance arm scales
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
6,301.5 / 14,623.3
2,436.7 / 14,623.3
3,265.9 / 14,623.3
352 / 6,552.1
- Financial
- Fails
- Overall
- Fails
Debt/assets is 43.10%, liquidity/assets is 16.67% and the disclosed finance-and-insurance proxy is 5.37% of quarterly revenue; the debt and activity screens fail.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 43.10%, above the examined MSCI limit; the financing activity also fails qualitatively.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 43.10%, above the examined Malaysia limit; the finance-and-insurance activity is also a core concern.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; the debt and core finance screens already fail.
Business-activity disclosure
AutoNation sells and services vehicles but also operates AutoNation Finance and a material finance-and-insurance business. Interest-bearing auto lending and conventional insurance/finance products are structural to the business model.
Limitation: The $352 million finance-and-insurance line includes fees and product revenue, so it is a conservative activity proxy rather than a pure interest-income measure.
Purification
AutoNation's finance-and-insurance and captive-lending activity is structural; the disclosed $352 million proxy establishes a core business concern rather than a purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from AutoNation's March 31, 2026 Form 10-Q.
- Debt combines commercial paper, current maturities of long-term debt, current and noncurrent non-recourse debt and long-term debt; operating leases are excluded.
- Cash is $65.5 million. Auto loans receivable of $2,371.2 million are shown as an interest-bearing financial-asset proxy.
- Receivables combine reported receivables of $829.2 million and auto loans receivable of $2,371.2 million.
- Finance-and-insurance, net revenue of $352.0 million is used as a disclosed conservative proxy for the interest-based finance activity; it includes fees and is not a pure interest line.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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