F&I profits rose in the second quarter despite dwindling new-vehicle sales, which typically offer more profitable F&I product sales opportunities.
Shifting consumer demand, changes in vehicle supply and affordability concerns in the new-vehicle market are prompting lenders and dealers to pivot toward used vehicles.
Auto lenders need to keep a close eye on customers to stay profitable as new-vehicle sales cool and economic growth slows.
Canadian police say 90 percent of the vehicles recovered during Project Baijin were newer-model high-end vehicles that were fraudulently financed and then had their VIN replaced.
Penske Automotive's revenue and gross profit dropped in both the new- and used-vehicle businesses, but rose in service and parts and finance and insurance.
Projections for the seasonally adjusted, annualized selling rate in July range from 16.5 million to 16.7 million. Experts are split on whether an extra selling day will boost sales ahead of last year's level.
As companies scramble to get their used houses in order, Group 1 CEO Earl Hesterberg calls the change "fundamental" -- and permanent.
The lender also replaced its CFO and its head of Chrysler Capital and auto relationships.
The "2019 Dealership Staffing Study" found that more than 30 percent of people born in 1991 or later showed an interest in working for auto retailers.
The German brand's new North American leadership team wants to address lingering issues with two different but equally important constituencies: consumers and its long-suffering dealer network.
Donald Ayres, founder of Don Ayres Honda, died July 6. He was 76.
Dealers featured this week include Brett and Bill Hedrick, co-owners of Hedrick’s Chevrolet in Clovis, Calif.; David C. and David G. Wintrode, owners of Causeway Ford-Lincoln in Manahawkin, N.J.; and Pohanka Automotive Group President Scott Crabtree.
In his lawsuit, Rosenberg alleged that as CEO of the automotive portfolio, he became aware of "serious financial misconduct" on the part of majority owner GPB Capital.
After 11 years at AutoNation, including the last five as CFO, Cheryl Miller aims to put her own stamp on the company. The new chief executive already has an agenda in mind.
Rosenthal, a car enthusiast with a fondness for antique cars and woodies from the 1930s and 1940s, groomed many other dealer-owners over a retailing career that started right out of college.
Rosenthal, a car enthusiast with a fondness for antique cars and woodies from the 1930s and 1940s, groomed many other dealer-owners over a retailing career that started right out of college.
Gains in finance and insurance and service and parts compensated for declines in new-vehicle gross profits.
Profits at the dealership group rose after adjustments for bad weather and other charges. Parts and service and F&I helped drive the gains.
In a new twist that essentially brings Musk right back to where he was at the start of the year, he’s growing Tesla’s chain of brick-and-mortar locations again by adding service centers.
Profits soared at Sonic Automotive Inc. in the second quarter, driven by record-high used-vehicle sales and fatter finance and insurance profits.
Net income from continuing operations jumped 57 percent to $26.8 million for the nation's fifth-largest U.S. dealership group, while revenue rose 4.3 percent to $2.6 billion.
Driving much of the used-vehicle sales growth was Sonic's EchoPark brand of standalone used-vehicle stores, where sales leapt 69 percent to 12,587. Revenue climbed 62 percent to $291.7 million for EchoPark.
Sonic CEO David Smith said Thursday that Sonic plans to open four more EchoPark locations by this time next year — one location before the end of 2019, another in the first half of 2020, and two additional stores in the second half of 2020. There are currently eight EchoPark stores — four locations in Texas, three in Colorado, and one in North Carolina.
"Our franchised stores posted very good results across all revenue lines and our EchoPark operations continued on the growth and profitability path experienced in the prior quarter," Smith said in a statement. "We are confident that this momentum will carry into the second half of the year."
Records: Consolidated used-vehicle sales, F&I gross profit and F&I gross profit per unit.
Sales: New-vehicle sales slipped 8.7 percent, or 2,681, to 28,196. Used-vehicle sales rose 16 percent to 41,458.
Same-store sales: New-vehicle sales on a same-store basis slid 2.4 percent to 28,134. That compares with a 1.7 percent drop in new light-vehicle sales for the U.S. industry during the second quarter, according to the Automotive News Data Center. Used-vehicle sales on a same-store basis increased 13.5 to 38,517, which includes sales from EchoPark locations.
Sonic, of Charlotte, N.C., ranks No. 5 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 122,717 new vehicles in 2018. It retailed 139,605 used vehicles for the same period, ranking it No. 6 on Automotive News' list of the top 100 dealership groups in used-vehicle sales.
Ryan was recognized for creating the first finance and insurance deapartment.
Cox Automotive's 2019 Dealership Staffing Study indicates many employees are seeking improved work-life balance and advancement options.
While new-vehicle revenues fell, AutoNation posted revenue gains in used vehicles, parts and service and F&I.
While new-vehicle revenues fell, AutoNation posted revenue gains in used vehicles, parts and service and F&I.
Miller, who was AutoNation's CFO, becomes the first woman to lead a publicly traded auto retailer. Executive Chairman Mike Jackson said the outgoing Carl Liebert wasn't a good fit for auto retailing.
Carl Liebert exits the helm of AutoNation just months after being named CEO, replaced by CFO Cheryl Miller, who becomes the first woman to lead a publicly traded auto retailer.
The automaker is targeting a year-end U.S. market share of 4.2 percent, up from 3.9 percent last year, and plans to boost the mix of CUVs in its lineup.
Dealer Doug Baum sees his $13.5 million investment into a premium-style Mitsubishi store as "a very, very safe bet."
Dealers featured this week include Tom and Tim Fuller, co-owners of Hunter Dodge-Chrysler-Jeep-Ram-Fiat in Lancaster, Calif.; Andy Palmen president of Palmen Motors Chrysler-Dodge-Jeep-Ram in Kenosha, Wis.; Michael Kennedy, president of John Kennedy Ford Feasterville, in Pennsylvania; and Vince Sheehy, president of Sheehy Auto Stores, Gaithersburg, Md.
Fiat Chrysler, which had 177 minority-owned stores at the end of 2018, surpassed Ford for the No. 2 spot behind GM's 278.
Used-vehicle loan originations accounted for more than half of Ally's auto originations for the sixth consecutive quarter.
Jose Arredondo, 58, was found dead by local authorities with "signs of blunt force trauma," reports said. It was unclear whether there were other victims or witnesses.
The resulting company would have more than 6,500 dealership customers and offer a wider range of technology products.
Auto loan terms of 96 months are offsetting an ongoing decline in new-vehicle incentives, but there’s increased risk for consumers.
Asbury Automotive Group's head of construction has firsthand experience in how technology is shaping the future of the F&I office. He was named one of ' this week for his role in shaping retail operations through dealership construction.
The lending giant saw its second quarter auto portfolio grow at a faster rate than consumers paid off their loans for the first time since the third of quarter 2016.
Affordability, an issue for car buyers nationwide, is becoming even more complex for consumers at the state level.
Mike Borys begins his new role Aug. 12. He replaces Raj Juneja, who resigned from the dealership group in March.
The discontinuation of the standard-range variants means a rise in starting prices -- to $84,990 for the Model X and $79,990 for the Model S. Tesla also lowered the starting price of its Model 3 sedan to $38,990.
Lendbuzz said it will use the capital to expand its auto financing platform, which uses machine learning and algorithms to assess the creditworthiness of consumers with limited U.S. credit history.
While the number of light trucks rose slightly last month, the number of unsold cars fell to its lowest point since November 2011.
Following the NSX supercar's redo, Acura's next act was perhaps more complicated: Infuse that NSX essence into a mainstream vehicle that would make buyers and dealers excited about the brand again.
The change for the Kelly Automotive Group is a noteworthy gamble at a time when retailers are clawing for every sale in a slowing market.
The Virginia Automobile Dealers Association will appeal a June court decision that went in Tesla's favor.
The Virginia Automobile Dealers Association will appeal a June court decision that went in Tesla's favor.
