AutoNation yearend F&I revenue hits $1B
AutoNation ramped up its finance and insurance revenue last year, increasing 4.3% to $1.02 billion by yearend, thanks to strong new and used gross profit per vehicle and customer financial services, Chief Executive Cheryl Miller said during the auto retailer’s fourth-quarter earnings call today.
In fact, F&I gross profit per vehicle for full-year 2019 increased by 7.5% year over year to $1,947, outpacing new and used gross profit per vehicle retailed, which clocked in at $1,794 and $1,424 for full-year 2019, respectively.
Further, AutoNation’s F&I revenue has outpaced its fellow publicly traded auto retailers. By comparison, Group 1 Automotive’s full-year F&I revenue declined 6.5% YoY at $497.9 million, according to the company’s full-year earnings reported last week. Yet, F&I profit per unit increased by 4.2% to $1,782.
Meanwhile, Asbury Automotive reported increases in F&I revenues and profit per unit, the auto retailer reported in its full-year earnings last week. Financial services revenue shot up 8% YoY to $316 million with profit per unit increasing 5% to $1,630.
Moving forward, AutoNation anticipates strong performance in the F&I segment, Miller said, noting that financial services were AutoNation’s first take at expanding the auto retailer’s brand. Additionally, AutoNation “continues to see [profit] migration to the used part of the business,” Miller added, noting the increased consumer demand for used vehicles is on her radar.
AutoNation’s stock (NYSE: AN) was trading at $37.37 per share at press time. The company has a market capitalization of $4.23 billion.
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