Most big dealership groups lift F&I revenue

Some small players reap hefty per-unit grosses

Finance and insurance revenue is rising at an overwhelming majority of the nation's largest dealership groups.

And while the public groups are the big boys in new-unit retail sales, they generally rank in the middle third of large dealership groups in F&I revenue per vehicle retailed. Some much smaller players get substantially more F&I revenue per vehicle.

Those are some of the insights from data on large dealership groups' F&I revenue, as compiled by the Automotive News Data Center.

Of the 125 largest dealership groups based in the United States, as ranked by new-unit retail sales, 83 increased their average F&I revenue per new or used vehicle retailed in 2013 from 2012, the data showed.

Just 35 of the 125 had a drop in F&I revenue per vehicle retailed. Of those, only eight had a double-digit drop. For seven of the 125, data were insufficient to make a year-over-year comparison.

In contrast, 35 of the top 125 dealership groups posted a double-digit increase in average F&I revenue per vehicle retailed last year -- and seven posted increases of 25 percent or more.

Leaders in F&I revenue per unit
Among the top 125 dealership groups based in the United States, as measured by new units retailed in 2013, these were the top 25 in average F&I revenue per unit retailed, including new and used.
RankDealership groupAverage F&I revenue per unit retailed% Change from 2012
1Bob Moore Auto Group$2,0715
2Zeigler Auto Group$2,0296
3Ancira Enterprises$2,0203
4Ken Garff Automotive$1,9503
5Rusnak Auto Group$1,8967
6Boucher Group$1,81845
7Hendrick Automotive$1,76810
8Shammas Automotive$1,75310
9McCombs Automotive$1,718–5
10Larry H. Miller Group$1,69714
11Jim Koons Automotive$1,67122
12Chapman Automotive$1,670–14
13Allen Samuels Enterprises$1,66110
14Huffines Auto Dealerships$1,583
15Dave Smith Auto Group$1,58015
16Piercey Automotive$1,57612
17Fletcher Jones Automotive$1,56821
18CAR Group$1,5634
19Galpin Motors$1,5589
20DARCARS Automotive$1,55116
21Potamkin Automotive$1,538–9
22Future Automotive$1,5216
23Van Tuyl Group$1,5033
24Kuni Automotive$1,495-2
25Jeff Wyler Automotive$1,4736
Source: Automotive News Data Center

'Increasingly important'

"Seeing where the front-end grosses aren't where they were, maintaining a strong back end is increasingly important," said Jamie Bishton, vice president of Noarus Auto Group in Garden Grove, Calif. To do so, he said, "We have to, in all of our departments, make sure we have good people and good processes."

In 2013 Noarus Auto Group raised its average F&I revenue per vehicle retailed 55 percent -- the largest gain of any dealership group on the list -- to $1,030. The strong gain was the result of "just good management," Bishton said.

"We really have to -- every opportunity we have -- understand who that customer is and what the best options for them are," he said. "Don't leave anything on the table."

The ranking of dealership groups by F&I revenue differs substantially from the ranking of the top 125 groups by new-vehicle retail sales. Only two groups in the top 10 in unit sales cracked the top 10 in F&I revenue: Hendrick Automotive Group ranked No. 6 in units and No. 7 in F&I revenue, and Larry H. Miller Group of Cos., No. 10 in units, ranked No. 10 in F&I revenue, too.

In many cases, the difference in rankings was considerable. Among privately held dealership groups, Van Tuyl Group ranked No. 5 in units and No. 23 in F&I revenue while Staluppi Auto Group ranked No. 9 in units and No. 40 in F&I revenue.

The $100 million club
Dealership group2013 F&I revenue in millions
Penske Automotive*$375.7
Van Tuyl Group$329.9
Hendrick Automotive$313.3
Group 1 Automotive*$311.4
Sonic Automotive*$272.4
Asbury Automotive*$206.9
Larry H. Miller Group$157.0
Ken Garff Automotive$147.6
Lithia Motors*$139.7
Staluppi Auto Group$111.9
*Publicly held
Source: Automotive News Data Center

No. 1/No. 38

Among the publicly traded dealership groups, AutoNation Inc., No. 1 in new-unit retail sales, was No. 38 in F&I revenue per vehicle retailed. Penske Automotive Group Inc., No. 2 in units, was No. 78 in F&I revenue.

The data are taken from the dealership groups' responses to the survey conducted by the Automotive News Data Center for the annual listing of the top 125 dealership groups based in the United States, as ranked by retail sales of new units.

The data may differ from those found elsewhere.

For example, publicly traded retailer Asbury Automotive Group Inc. posted average F&I revenue of $1,325 per unit retailed, the Automotive News Data Center data show. But the company reported average per-unit F&I revenue of $1,308 -- based on same-store sales -- in its public filings.

In another example, Ancira Enterprises in San Antonio said the Automotive News Data Center's calculations overstated its average F&I revenue per vehicle retailed.

The Data Center's figures, based on data supplied by Ancira, showed Ancira posting average F&I revenue of $2,020 per vehicle, which put it No. 3 on the list of dealership groups in that measure. But Joey Blackmon, vice president of operations, said that figure was inflated by F&I revenue at the group's two RV stores.

For car and light-truck F&I revenue alone, the group was closer to about $1,450, Blackmon said.

That still ranks Ancira in the top 30.

Blackmon said the company prides itself in topping the public dealership groups in F&I revenue per vehicle.

To get there, managers at Ancira's 15 stores practice menu selling -- most of the time.

"About 80 percent follow the menu," he said, while "the others have their own form of it" and often get better results. "So we leave them alone."

More important, he said, "We've pitched for a good spread of business. Try not to hit a home run in any one area. Our cancellations are just minuscule. It's not what you sell. It's what you get to keep."

He added, "If you do business right and don't try to charge an exorbitant amount for it, you'll be successful over the long haul."

Ancira has another advantage: its Texas location. Leasing is traditionally weak in Texas, where consumers know their long-distance drives will quickly put them at risk of a lease's mileage penalties. And leasing customers traditionally buy fewer F&I products.

That may be why the top five dealership groups in F&I revenue per vehicle retailed include one each from Texas, Oklahoma and Utah.

Big gains
Dealership groups with increases of more than 20% in average F&I revenue per unit retailed in 2013
RankDealership groupAverage F&I revenue per unit retailed% Change from 2012
1Noarus Auto$1,03055
2Greenway Automotive$1,36949
3Boucher Group$1,81845
4Swope Automotive$1,09637
5Garber Management$52733
6Balise Motor$1,23530
7Priority Auto$1,34125
8Grossinger Auto$1,25923
10Jim Koons Automotive$1,67122
11Fletcher Jones Automotive$1,56821
Source: Automotive News Data Center

You can reach James B. Treece at

ATTENTION COMMENTERS: Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Email Newsletters
  • General newsletters
  • (Weekdays)
  • (Mondays)
  • (As needed)
  • Video newscasts
  • (Weekdays)
  • (Weekdays)
  • (Saturdays)
  • Special interest newsletters
  • (Thursdays)
  • (Tuesdays)
  • (Monthly)
  • (Monthly)
  • (Wednesdays)
  • (Bimonthly)
  • Special reports
  • (As needed)
  • (As needed)
  • Communication preferences
  • You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.