PART I

ITEM 2. PROPERTIES

    During 2000, we entered into a sale-leaseback financing of our corporate headquarters facility resulting in proceeds of approximately $52.1 million. We also own or lease numerous facilities relating to our operations in 18 states. These facilities consist primarily of automobile showrooms, display lots, service facilities, collision repair centers, supply facilities, automobile storage lots, parking lots and offices. We believe that our facilities are sufficient for our needs and are in good repair.

    In connection with the closure during December 1999 of 23 company-owned AutoNation USA used vehicle megastores, during 2000 we sold a majority of the excess real property held for or operated in connection with the used vehicle megastore business. We intend to continue actively marketing the remaining excess used vehicle megastore properties.