AutoNation Nears $2,000 PVR as Big Groups Grow F&I
The nation’s six largest publicly traded dealer groups all increased F&I profit per vehicle retailed in the second quarter, led by AutoNation’s $1,926 per copy and Lithia Motors’ segment-leading 11% improvement.
Publicly traded dealer group Lithia Motors reported a segment-leading 11% improvement in F&I profit per vehicle retailed in Q2, pushing its per-copy average to $1,451.
(Bobit) — Each of the six big publicly traded U.S. dealership groups improved F&I performance in the second quarter, according to Automotive News. Leading the pack was AutoNation, which averaged $1,926 per copy, a 7.5% increase from Q1 — despite slowing new-vehicle sales.
“As we add additional used, or as we like to call it, nearly new business, in that does blend it down some, but we’ve been able to outperform that with a talented team of associates combined with having our own products in that area,” said Cheryl Miller, the group’s new chief executive.
Group 1 Automotive finished as a close second at $1,821 profit per vehicle retailed (up 9.7%). Asbury Automotive reported a per-copy average of $1,659 (up 8.4%), followed by Sonic Automotive ($1,644, up 7%), Lithia Motors ($1,451, up 11%), and Penske Automotive Group ($1,302, up 7%).
Group 1 and Sonic set all-time quarterly records. Lithia’s 11% improvement led the pack. CEO Bryan DeBoer expects further gains as acquired stores, which he said tend to average about $700 per copy, adopt Lithia’s fixed pricing policy for F&I products.
“If you reflect back on the $1,450 that we did, that’s about doubling that F&I average,” DeBoer told AN.
To read the full Automotive News report, click here.
Originally posted on F&I and Showroom
More F&I
Get Ahead of the Change
A strong culture, among other things, will be a key differentiator for auto dealerships as the market speeds ahead to new heights, says industry veteran Joel Kansanback.
Read More →
F&I Without the Handoff
Get more familiar with what your dealer clients are really buying when they entrust you with finance-and-insurance.
Read More →
Affordability Shapes Auto Demand
Auto originations increased 1% in the first quarter, and electric vehicles are rebounding, according to TransUnion's latest credit report.
Read More →
The Evolution of Agency Development in Modern F&I
General agents have a different roadmap for success than their predecessors. It will pay for them to follow it in order to be true dealer partners.
Read More →
Four-Figure Loan Payments on the Rise
A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.
Read More →
APCO Holdings Acquires Fidelity Dealer Services
The finance-and-insurance product provider says the addition strengthens EasyCare’s reach across key markets.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
Ensure Your Clients Are Sure About Reinsurance
Industry experts recently broke down the complicated profit center at Agent Summit. Learn what’s relevant and what’s new to share with your dealers.
Read More →
Car Loans More Plentiful
May access opens up, as risk segments figured largely in the increased availability, Cox Automotive reported.
Read More →