auto dealer in black and red logo
MenuMENU
SearchSEARCH

Buffett Won’t Steer F&I, Defends Franchise Model

The Billionaire investor weighs in on a host of topics, from Tesla and the franchise system to his acquisition of the Van Tuyl Group and the opportunities that lie in F&I.

by Tariq Kamal
April 2, 2015
Buffett Won’t Steer F&I, Defends Franchise Model

 

2 min to read


NEW YORK — Billionaire investor Warren Buffett and auto group magnate Larry Van Tuyl engaged in a lively discussion with CNBC’s Becky Quick at the NADA/J.D. Power Automotive Forum on Tuesday. The pair appeared several months after Buffett’s investment company, Berkshire Hathaway Inc., acquired the family-owned Van Tuyl Group, the nation’s fourth-largest auto retailer. The company was renamed Berkshire Hathaway Automotive and now includes 81 dealerships in 10 states.

The Q&A was the highlight of the Automotive Forum, which convened at New York’s Grand Hyatt Hotel and also included sessions devoted to the global economic outlook, the state of U.S. auto sales and advances in digital marketing. Buffett and Van Tuyl appeared relaxed and jovial as they reflected on the acquisition and fielded questions from Quick and audience members. Much of the discussion revolved around whether Buffet would seek to effect a change in business operations, a notion he quickly dismissed.

“We own all kinds of businesses. We own a railroad. I don’t know where they buy their diesel fuel from,” he joked. “I’m not even sure I know what diesel fuel is.” He pointed out that his investment in Forest River, an Elkhart, Ind.-based RV manufacturer, had yielded only two phone conversations with the company’s owner in the past 10 years.

“It’s going to be business as usual,” Van Tuyl added.

When asked what opportunities he saw in the F&I space, Buffett deferred to Van Tuyl. “That will be up to Larry. He’s got his own bank arrangements. We don’t get into that.”

Both men were asked to comment on advances made by Tesla, the electric-vehicle manufacturer led by Elon Musk, a proponent of the direct-to-consumer sales model. Van Tuyl noted that, as a small-volume manufacturer, Tesla was not likely to influence his operation or the wider auto retail market.

“However, new technology is always good,” Van Tuyl said. “It always forces us to take a look and challenge ourselves, so it certainly isn’t a bad thing. But I don’t see it as a threat.”

Buffet added: “The dealer system works well for the manufacturer. It works well for the dealer. It works well for the consumer. And it’s been around now for a very long time. Usually, when a distribution system becomes that firmly established, there’s a reason for it. … And I just don’t see that changing.”

Look for a comprehensive report in the May issue of F&I and Showroom.

Originally posted on F&I and Showroom

More Fixed Ops

Photo of metal tools on a surface
Fixed Opsby StaffJuly 2, 2026

ASE Acquires WrenchWay

The auto technician certification nonprofit said the deal expands its role in workforce-development and support for current and future service professionals.

Read More →
Photo of tire on white car
Fixed Opsby StaffJune 29, 2026

TraXtion Introduces TireSpec Website Solution

The company says the offering enables consumers to snap a photo of their tire with a smartphone and receive an instant replacement quote, capturing 90% of tire shoppers who start their shopping online.

Read More →
Photo of white SUV in garage with graphic explaining car photo process
Fixed Opsby StaffJune 15, 2026

UVeye Launches Same-Day Vehicle Listings for Car Dealers

New 'Scan to Sold' offering turns the service lane into a website-ready merchandising photo booth designed to help dealerships reduce turnaround time from days to minutes.

Read More →
Ad Loading...
Advertising graphic for RockED and Vincue
Fixed Opsby StaffJune 15, 2026

RockED, VINCUE Launch Inventory-Management Industry Certification

Offering for retail automotive dealers and operators is designed to address what the companies say is a lack of standardized and modern thought leadership in vehicle life-cycle management.

Read More →
Two men do mechanical work on car.
Fixed Opsby Lauren LawrenceJune 12, 2026

Survey Shows What Technicians Want

Data gathered by the ASE Training Managers Council shows that service technicians prefer classroom or instructor-led training and hands-on lab work over online or self-led training.

Read More →
Photo of metal tools lined up in rows on a surface
Fixed Opsby StaffJune 10, 2026

Automotive Service Pros Month Shifts to October

ASE is making the change to better align with two other sector observances that take place each year highlighting technicians' key role.

Read More →
Ad Loading...
white Chevrolet Equinox being temperature tested
Fixed Opsby Lauren LawrenceMay 1, 2026

Extreme Temps Hinder EV Efficiency

American consumers might be happy to know that their preferred hybrids are slightly less impacted by extreme temperatures than fully electric vehicles, according to a new study.

Read More →
Photo of "airbag" term on car dashboard
Fixed Opsby Hannah MitchellApril 6, 2026

Ban on Air Bag Inflators by Chinese Maker Proposed

NHTSA blames 10 deaths and two serious injuries on what its investigators believe were illegally imported air bag inflators. It’s taking public comments before deciding whether to ban them outright.

Read More →
Graphic showing “Fix It Forward Winner” with a white SUV, open hood, and tools, representing a program that provides vehicle repairs to those in need.
Fixed Opsby StaffMarch 27, 2026

Fix It Forward Program Helps Man Regain Mobility

Albuquerque consumer who suffered a life-changing injury regains the use of his vehicle after Fiesta Volkswagen's service team shared his story with DOWC Cares.

Read More →
Ad Loading...
Graphic announcing partnership between ASE Connects and Worldpac to support technician pipeline development and strengthen connections between industry and education programs.
Fixed Opsby StaffMarch 23, 2026

ASE Connects Partners With Worldpac to Build Technician Numbers

The collaboration is intended to help auto dealerships, automakers and after-market shops further develop the technician pipeline.

Read More →