Stock prices for independent auto finance companies and dealership groups plunged steeper than the Dow Jones Industrial Average during the two-week period from Oct. 2 to Oct. 17. While the Dow lost 15.6% of its value in that timeframe, dropping to 8,852 from 10,483, the total market cap of 13 companies tracked by Auto Finance News fell 28.5%. On a dollar basis, the AFN portfolio’s market cap fell to $5.9 billion from $8.2 billion two weeks prior. Leading the list of decliners was Sonic Automotive Inc. (down 58% for the period), followed by Asbury Automotive (54%), Group 1 Automotive Inc. (45%), and United PanAm Financial (44%).
By comparison, the 13-member group’s 2007 market cap was $13.7 billion on Dec. 17, and $26.4 billion on Jan. 3. In all, the financiers and dealerships have lost a combined 77.8% of their values since the beginning of last year.
