Penske, Asbury Auto, Group 1 F&I revenue jumps in Q3

Auto retailers saw rising finance and insurance revenue in the third quarter, despite mixed retail sales across new and used vehicles. Penske Automotive Group ’s finance and insurance (F&I) revenue rose 1.5% year over year in Q3 to $195.9 million, according to the retailer’s earnings release published today. F&I revenue made up 3% of Penske’s total retail automotive revenue. F&I gross profit per unit (GPU) rose 4.9% YoY to $1,848, according to the release. Total retail sales fell 3.5% YoY in Q3, with new-vehicle sales down 1.4% YoY to 48,809 units and used-vehicle sales down 5.2% YoY to 54,708 units, according to the release. Retail new-vehicle GPU fell 6.8% YoY to $4,726, while used-vehicle GPU rose 12.2% YoY to $2,112, according to the release. Meanwhile, Penske’s floorplan interest expense dropped 15.6% YoY to $42.9 million as vehicle inventories were mixed, according to the release. The days’ supply of new vehicles fell to 51 days in Q3 from 53 days in Q3 2024, while used vehicle days’ supply held at 43 days, flat from last year. Shares of Penske Automotive Group [NYSE: PAG] were trading at $160.80 at market close, down 1.4% from market open today. Penske has a market capitalization of $10.6 billion. Asbury Auto: F&I up Asbury Automotive ’s F&I revenue rose 8% YoY, totaling $200.3 million in Q3, according to its earnings release published Oct. 28. F&I GPU also rose 1.9% YoY to $2,182. New-vehicle sales rose 7% YoY to 43,122 units, while used-vehicle sales dropped 3.6% YoY to 34,294 units, according to the release. Stronger new-vehicle sales came in part from increased consumer demand for new EVs before the Sept. 30 federal tax credit expiration, Chief Executive and President David Hult said during an Oct. 28 earnings call. “Pent-up consumer demand and the expiration of the EV tax credit drove strong new volumes,” he said. New-vehicle GPU fell 10.2% YoY to $3,188, while used-vehicle retail GPU ticked up 1.4% YoY to $1,551, according to the release. Inventory fell across both segments. New-vehicle inventory dropped to 58 days in Q3 from 72 days in Q3 2024. Used-vehicle inventory fell to 35 days in Q3, down from 38 days a year prior. Asbury identified used-vehicle performance as its “biggest opportunity to improve execution,” Vice President of Operations Paul Whatley said during the earnings call. As more used vehicles become available, there are more opportunities for growth, he said. “The pool of available used cars starts to recover in 2026, improving further into 2027 and 2028,” he said. “Our teams are focused on driving profitable volume growth over the coming quarters.” The retailer’s floorplan interest expense rose 19.7% YoY to $26.7 million, according to the release. Shares of Asbury Automotive Group [NYSE:ABG] rose 0.6% from market open to $237.25 at market close. Asbury’s market capitalization is at $4.7 billion. Group 1: F&I all-time Q3 high Houston-based Group 1 Automotive ’s F&I revenue climbed 12.5% YoY in Q3 to $240.9 million, according to the retailer’s earnings release published Oct. 28. F&I GPU rose 5.6% YoY to $2,061. F&I GPU in the United States reached “an all-time quarterly high” of $2,488, Chief Executive and President Daryl Kenningham said during the company’s Oct. 28 earnings call. Aftersales also “achieved record quarterly revenue and gross profit,” he said. “Our investment in our after-sales operation continues to capture growth,” Kenningham said. Parts and service sales revenue increased 11.2% YoY to $733.9 million, while gross profit grew 11.1% YoY to $407.6 million, according to the release. Group 1’s retail new-vehicle sales increased 6.5% YoY in Q3, totaling 57,269 cars. Retail used-vehicle sales rose 6.6% YoY to 59,574 vehicles. The average sales price (ASP) rose 5% YoY for retail new and used vehicles, totaling $50,816 and $31,112, respectively. New-vehicle retail GPU fell 4.6% YoY to $3,250 and used-vehicle retail GPU fell 9% YoY to $1,433, according to the release. For the United States, according to the release: New-vehicle retail sales rose 4.7% YoY to 41,582 vehicles, while retail used vehicles ticked up 2.2% YoY to 39,636 vehicles; New-vehicle ASP rose 3.5% YoY to $52,595, and used-vehicle ASP rose 3.9% YoY to $31,042; and New-vehicle retail GPU fell 5.9% YoY to $3,322, while used-vehicle retail GPU fell 3.1% YoY to $1,529. Shares of Group 1 [NYSE: GPI] were trading at $404.24 at market close today, up 2.8% from market open. The retailer has a market capitalization of $5.2 billion.

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