AutoNation reported record average F&I revenue per vehicle of $1,528 in the second quarter on Wednesday, on a same-store basis, leading the field along with Group 1 Automotive, which reported a near-record $1,525 for its U.S. dealerships.
The other four publicly traded, new-vehicle auto retailers have a lot of ground to make up, led by Asbury Automotive Group, at $1,373 for the second quarter.
“We reported a nice improvement in F&I year-over-year,” said Chris Holzshu, CFO of Lithia Motors Inc., in a conference call on Wednesday.
“It was up 78 bucks to $1,280. But I think AutoNation this morning reported something like $1,540, so we do have an opportunity there that we’re working on to continue [to] enhance all aspects of the transaction,” he said.
AutoNation’s previous record average F&I revenue per vehicle was $1,515 in the first quarter. Group 1 had an all-time record for all of the publicly traded auto retail groups of $1,538 in the first quarter.
William Berman, AutoNation COO and executive vice president, said about two-thirds of AutoNation’s F&I revenue per vehicle typically comes from product sales, and about one-third from arranging financing. In total, the said gross profit for Customer Financial Services — AutoNation’s term for F&I — was $212 million for the quarter, an increase of 15% from a year ago.
