AutoNation Inc (AN) - Get Report CEO Mike Jackson said the nation's largest dealership group will reduce its reliance on automakers by opening used car centers, The Wall Street Journal reported.

Jackson said automakers are too generous with incentives, which spark price wars that are "chaotic for retailers and confusing for customers." Jackson wants to instead build a business he's "in control of," opening the first used car dealership in southeast Texas this week.

After seven years of steady profitability, AutoNation reported an earnings miss Wednesday marked by a 21% decline in net income. Slowing auto sales signal it's time for the company to make a change. AutoNation is snagging market share in used car sales from competitor CarMax Inc (KMX) - Get Report and expanding into branded car parts, auctions and collision centers in addition to opening used car dealerships.

The used car centers implement cutting-edge technology and a no-haggling policy. Using Apple Inc (AAPL) - Get Report iPads, customers deal with just one salesman and can test drive and buy a car and receive financing in under an hour.

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The used car market is on the upswing, as leases end and cars in good condition head to used lots. The price tag is smaller, but margins are higher compared to new car sales.

AutoNation stock traded down nearly 6% premarket as its earnings flopped.

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