auto dealer in black and red logo
MenuMENU
SearchSEARCH

Lithia Grows F&I, Catches Acquisition Fever in 4Q

Lithia Motors executives reported a new company record for F&I profits and promised to maintain the group’s aggressive growth strategy in 2017.

by Staff
February 15, 2017
2 min to read


MEDFORD, Ore. — Executives with Lithia Motors Inc. held a conference call Wednesday to share fourth-quarter results with investors and analysts. President and CEO Bryan DeBoer reported gains in sales, revenue and profitability, including spiking penetration rates for F&I products.

DeBoer also made clear the company will continue to follow the “significant acquisition cadence” that reached a crescendo with the June 2014 acquisition of DCH Auto Group. Now the nation’s fifth-largest auto retailer, Lithia counted 150 rooftops at the close of the fourth quarter.

“We remained focused on growing new-vehicle unit sales,” DeBoer said, saying the strategy has paid off in stronger factory relations and new opportunities in the pre-owned and fixed-ops segments. “While this may result in slightly compressed margins and incremental selling expense, it will reward us with greater organic and acquisition growth potential in the future.”

Lithia’s executive vice president, Christopher Holzshu, said the company employed 12,000 people at year’s end, nearly triple the workforce it had in 2010. Among the new hires in 2016 were about 400 managers.

“Our culture attracts the top managers in the industry; those who achieve high performance while striving to become more independent,” Holzshu said.

DeBoer said 60 Lithia stores achieved record profitability in the quarter, contributing to year-over-year increases in new-vehicle revenue (4%), unit sales (2%), and average selling price (2%). Used-vehicle revenue increased by 11%, with 10% attributed to more sales and the balance to higher prices.

The group set a new company record in F&I profit per vehicle retailed, averaging $1,295 per copy during the fourth quarter. That beat the year-ago mark by more than $100. DeBoer noted that penetration rates for F&I products were up across the board. In the fourth quarter, Lithia dealers arranged the financing for 73% of customers, sold a service contract to 45%, and sold lifetime oil to 26%.

Noting that the group’s margin on new and used sales had declined over time, an analyst asked DeBoer if Lithia was relying on F&I to offset lower front-end profits on the sale of used and new vehicles.

“I think the idea of front-end gross average being offset by F&I improvements is a model that we like to be able to gain market share,” DeBoer answered. “So our focus is to continue to attack margins to create more units that give us more trade-ins and create more service business for the long term.”

Originally posted on F&I and Showroom

More Training

Headshot photo of businessman
Trainingby StaffJuly 29, 2026

RockEd, DriveCentric Combine AI-Run Performance, Training, Compliance

The partnership is intended to tap employee performance data to help auto dealerships analyze performance and focus training on sales operations weak spots.

Read More →
Photo of male mechanic next to car with open hood
Trainingby StaffJuly 8, 2026

ASE Gets $25 Million for Tech Apprenticeships

The four-year U.S. Department of Labor initiative pays for employers to hire and keep new auto, collision and truck technicians to grow the workforce.

Read More →
inside car dealership, text box Turn Losses into Learning, Auto Dealer Today
TrainingJuly 1, 2026

The Hidden Leaks

Data show where automotive dealers are losing buyers before the sale and how they can effectively stem the tide to increase business.

Read More →
Ad Loading...
men sitting at tables taking a class
Trainingby StaffMay 18, 2026

ASE Developing ADAS Calibration Credential

The National Institute of Automotive Excellence said its intent with the new technician program is to prioritize practical application and operational understanding over deep electrical diagnostics.

Read More →
Automotive Aftermarket Scholarships Central logo over a background of a technician working under a vehicle hood.
Trainingby StaffJanuary 23, 2026

Apply by March 31 for Automotive Scholarships

UAF is accepting applications for more than $900,000 in automotive and heavy-duty scholarships for the 2026-27 school year.

Read More →
RockED and TruVideo graphic promoting a video inspection certification program for automotive students.
Trainingby StaffJanuary 15, 2026

Combatting the Technician Shortage

RockED and TruVideo have launched a free video inspection certification for automotive schools.

Read More →
Ad Loading...
Trainingby StaffOctober 15, 2025

The F&I Agent's Roadmap: Mastering the Cold In-Store Visit

Register for Allstate's FREE webinar on Oct. 21

Read More →
Graphic showing the DealerPRO Training and APCO Holdings logos alongside a headshot of Courtney Hoffman, President and Chief Revenue Officer of APCO Holdings.
Trainingby StaffSeptember 19, 2025

APCO Holdings Acquires DealerPRO Training

The addition expands company's footprint in fixed ops training

Read More →
Trainingby StaffSeptember 8, 2025

Auto Dealership Training Program Expands

Protective Asset Protection offering is AI-driven.

Read More →
Ad Loading...
Trainingby StaffOctober 25, 2024

ASE Offers Free Vehicle-Fluids Webinar

Class will share updates on lubricant and filtration technologies in newer models.

Read More →