Editor's note: An earlier version of this story misstated the contribution to Group 1's F&I profits from Val-U-Line, a proprietary brand for older-model, higher-mileage used vehicles.
Five of the six public new-vehicle dealership groups improved average F&I gross profit per vehicle in the third quarter, driven by growing F&I product penetration and F&I training efforts, the companies said.
F&I profit per unit declined slightly for Asbury Automotive Group Inc., of Duluth, Ga., whose average gross profit per vehicle on a same-store basis dipped $16, or 1 percent, to $1,524. Meanwhile, total F&I gross profit was up 5 percent.
Asbury CEO David Hult said on a call with investors last week that some of the profit decline had to do with a heavier mix of used vehicles in the group's inventory.
"We saw the finance penetrations just drop slightly. We have had some pretty solid performance in F&I for a while, but I see us maintaining that range of F&I," Hult said.
AutoNation Inc., of Fort Lauderdale, Fla., ranked No. 1, boosted same-store F&I profit per vehicle 6.4 percent, or $107, to $1,781. CEO Mike Jackson attributed the consistent growth to AutoNation's branded F&I product sales.
The four other public retailers also boosted same-store F&I profit per vehicle:
- Group 1 Automotive, of Houston, rose 7.9 percent, or $123, to $1,685.
- Sonic Automotive Inc., of Charlotte, N.C., rose 2.8 percent, or $39, to $1,444.
- Lithia Motors Inc., of Medford, Ore., rose 10.5 percent, or $133, to $1,399.
- Penske Automotive Group Inc., of Bloomfield Hills, Mich., rose 5.8 percent, or $68, to $1,244.