Asbury Automotive COO David Hult called the group's F&I performance in the third quarter a "small setback" compared to previous quarters, noting that he remains hopeful for the coming quarter.
Total auto loan balances in the third quarter grew 9% from a year ago to $1.1 trillion, with subprime balances leading the way, TransUnion reported on Monday.
F&I, used retail sales, and fixed ops helped dampen Sonic's third quarter declines in volume and gross profit per unit (GPU) retailed. The group also reported that its EchoPark locations increased their F&I per-copy average by 16.3% to $1,078. Overall, the group's F&I operations averaged $1,341 per copy during the period.
Record-setting F&I, a strong used-vehicle segment, and gains in parts and service paved the way for a year-over-year improvement in total gross profit for Lithia Motors during the period.
Margin over volume was the message coming out of Group 1 Automotive during its third-quarter earnings call. The dealer group reported that a sharp decline in unit sales offset improved new-vehicle margins, as well as gains in F&I and parts and service.
The Volkswagen brand, still suffering from the diesel emissions scandal, was the only brand to show a dip in average transaction prices.
The group averaged $1,549 in F&I profit per vehicle retailed in the third quarter. Company officials noted that new-vehicle PVRs from self-generated sales, including F&I contributions, were about $800 higher than new-vehicle PVRs from sales generated by third-party lead providers.
Used-vehicle prices were up nearly 3% in the third quarter from a year ago, according to Manheim’s Used Vehicle Value Index, a measure of wholesale prices adjusted for mix, mileage and season.
Experian Automotive reported this week that average dollar amount for both new and used vehicle loans reached all-time highs in the third quarter, climbing to $27,799 and $18,576, respectively.
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