FORT LAUDERDALE, Fla. (AP) — AutoNation Inc., the nation's largest auto dealership chain, said Thursday that its third-quarter profit rose 24 percent on higher new and used vehicle prices.

The Fort Lauderdale, Fla., company said its net income rose to $70.7 million, or 48 cents per share, for the period that ended Sept. 30. That compares with $56.9 million, or 38 cents per share, a year earlier.

AutoNation, which owns 257 new-vehicle franchises in 15 states, said revenue increased 7 percent to $3.5 billion from $3.27 billion a year ago.

Analysts polled by FactSet expected earnings of 47 cents a share on revenue of $3.4 billion.

AutoNation said new-vehicle sales at dealerships open at least a year fell 2 percent and were flat overall, due primarily to model shortages from Japanese automakers caused by the March earthquake. Total U.S. industry new-vehicle sales increased 1 percent for the quarter.

Across the industry, prices of Japanese vehicles were higher during the quarter because supply was short, and used-car prices remained high because of strong demand and short supplies.

"While shipments from the Japanese manufacturers improved in the third quarter, inventory levels of these vehicles remained constrained," CEO Mike Jackson said in a statement. He added that profit margins on Japanese vehicles likely will drop in the fourth quarter as supplies improve.

AutoNation said its used-vehicle revenue rose 7 percent. Revenue from parts and service was up 2 percent, and finance and insurance revenue rose 9 percent, the company said in a statement.

Auto sales continued a modest recovery from the recession during the quarter even as the overall economy sputtered with wild stock market swings, high unemployment and low consumer confidence. Also, Americans are holding onto their cars longer for fear of taking on more debt. The average age of a car in the U.S. remains at a record 10.6 years, according to the Polk research firm

But Jackson said he expects the U.S. auto industry's recovery to continue into the fourth quarter and beyond.

AutoNation said gross profit per new vehicle rose 23 percent.

The company said income from sales of cars and trucks from Detroit automakers was $47 million compared with $43 million last year, with a 12 percent increase in new-vehicle sales. Income from foreign brand sales rose to $65 million from $51 million a year earlier. But foreign brand retail sales dropped 10 percent.

Premium luxury income was up $2 million to $50 million. Third-quarter premium luxury retail sales were up 11 percent.