Asbury Automotive Group’s same-store finance and insurance profit per vehicle increased in the second quarter, while Penske Automotive Group’s F&I net revenue as same-store F&I profit per vehicle retailed fell.
Atlanta-based Asbury is moving from maximizing used-vehicle gross profit toward pursuing more volume while maintaining healthy PVRs, Chief Executive Dan Clara said during its July 28 earnings call.
“The biggest impact is just the slow but very methodical and strategic approach,” he said of Asbury’s used-vehicle sales decline.
Asbury purchased about 6,500 vehicles at auction, raising its used-vehicle days’ supply to 37 from 30, Clara said. About 70% of its used inventory was less than 30 days old, he said.
Bloomfield Hills, Mich.-based Penske forecasts 4,200 Toyota lease returns in 2026, rising to 5,600 in 2027, Penske North American Operations Officer Rich Shearing said during its earnings call today. Nearly 4,600 Audi returns are expected this year, with 58% scheduled for the second half of the year, he said.
“We are seeing some challenges with the consumer in a negative equity position,” Shearing said. Current rates can also make moving to a higher payment difficult, he said.
By the numbers
Asbury’s second-quarter results included:
- Revenue increased 0.3% year over year to $4.4 billion.
- Net income declined 25% to $114.6 million.
- Same-store F&I gross profit decreased 4.8% to $150 million.
- Same-store F&I per vehicle retailed increased 5.3% to $2,214.
- Same-store new-vehicle sales declined 6.5% to 38,908 units.
- Same-store used-vehicle sales fell 13.6% to 28,821 units.
- Same-store used-vehicle gross profit per unit increased 10.4% to $1,927.
Meanwhile, Penske’s second-quarter results included, according to today’s earnings release:
- Revenue increased 6% YoY to $8.5 billion.
- Net income attributable to common stockholders declined 2.3% to $260.4 million.
- Retail automotive F&I net revenue increased 1.3% to $211 million.
- Same-store F&I PVR decreased 3.8% to $1,815.
- New-vehicle retail deliveries increased 4.1% to 55,136 units.
- Used-vehicle retail deliveries increased 4% to 59,070 units.
- Total deliveries, including agency sales, increased 4.6% to 125,401 vehicles.
Asbury Tekion rollout targets dealership efficiency
Asbury had converted 70% of its stores to the Tekion dealership management system as of July 28 and expects to complete the rollout in October, Clara said.
Tekion is a cloud-based automotive retail platform that integrates dealership sales, F&I, service, parts and accounting operations into one system, according to the company’s website
Asbury’s same-store adjusted selling, general and administrative expenses were 65.3% of gross profit in Q2, Clara said. The group is targeting the low-60% range by the end of 2027, he said.
In comparison, Penske’s SG&A expenses were 71.8% of gross profit, up from 69.8% a year earlier but down 250 basis points sequentially, Chief Financial Officer Shelley Hulgrave said.
Penske did not take questions during its earnings call today about an unsolicited, preliminary and nonbinding proposal from Penske Corp. and Mitsui & Co. to acquire the dealership group’s remaining shares for $210 each.
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