Asbury Auto F&I revenue drops 5.4% in Q2

Asbury Automotive and Penske Automotive ’s finance and insurance profits tumbled in the second quarter as sales were mixed and dealerships navigated inventory challenges. Asbury Automotive’s total finance and insurance (F&I) revenue fell 5.4% year over year in Q2 to $182 million, according to the company’s earnings release published on July 29. F&I gross profit per unit (GPU) also declined 3.1% YoY to $2,084. The retailer’s new-vehicle sales increased 4.1% to 44,437 units and used-vehicle sales decreased 6% to 36,233 units in the second quarter as supply remained constrained. Inventory shrank for both new and used vehicles. New-vehicle inventory sat at 59 days’ supply, down 13 days YoY. Used-vehicle inventory sat at 37 days’ supply, one day tighter compared with Q2 2024. Floorplan interest expense declined in tandem with fewer days of inventory, landing at $18.1 million, down 13.8% YoY. Total revenue was $4.4 billion, up 3% YoY. “We are facing [a] lack of supply from the used-car inventory in relation to the pandemic,” Chief Operating Officer Daniel Clara said on the company’s July 29 Q2 earnings call. “Our plan stays the same, maximizing gross profit rather than chasing the volume.” " We are facing [a] lack of supply from the used- car inventory in relation to the pandemic... O ur plan stays the same, maximizing gross profit rather than chasing the volume . ” -- Daniel Clara, c hief operating officer, Asbury Automotive Asbury will assess inventory on a continuous basis so that the company is ready to adjust when the market shifts, he said. GPU, meanwhile, was mixed. New-vehicle GPU was $3,601, down 0.9% YoY, while used-vehicle GPU climbed 17.6% YoY to $1,720, according to the release. “While new-vehicle GPUs have been resilient year to date, we still see those metrics trending back toward the $2,500 to $3,000 range over time with optimism that we end up more toward that $3,000 level,” David Hult, president and chief executive, said on the call. “Used-vehicle profitability has remained strong, supported by a constrained supply environment.” he said. Shares of Asbury [NYSE: ABG] were $222.03 at market close, up 07% from market open. Asbury has a market cap of $4.4 billion. Penske F&I revenue dips Penske Automotive’s F&I revenue also dropped in the second quarter as used-unit inventory continued to show signs of strain. F&I revenue dropped 3.9% YoY to $200.5 million, according to the company’s earnings release today. F&I GPU was $1,919, up 8.7% YoY. Total sales dropped in Q2, with new-vehicle sales down 6.5% YoY to 47,546 units and used-vehicle sales down 16.1% YoY to 54,999 units. GPU, however, increased for new and used vehicles. New-vehicle GPU was $5,443, up 2.7% YoY, and used-vehicle GPU jumped 27.7% YoY to $2,326. “We experienced elevated traffic during April and May, [and] we believe the pent-up demand is driving customer resilience,” Rich Shearing , Penske’s chief operating officer for North America, said on today’s call. “We have seen stronger traffic and closing ratios so far in July, with sales up approximately 10% month to date versus prior year.” In Q2, Penske also reported: Floorplan interest expense fell 7.1% YoY to $43.3 million; Days' supply for new vehicles was 57, up from 49 in Q2 2024; and Days' supply for used vehicles was 44, down from 47 days a year prior. Shares of Penske [NYSE: PAG] were $166.84 at market close, down 0.7% from market opening. Penske’s has a market cap of $11 billion. Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. To learn more about the 2025 event and register, visit w ww.AutoF i nance.live/AFS .

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