FI showroom red and grey 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.

Ad Loading...

“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%.

Ad Loading...

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.”

More F&I

Under the hood of a Toyota Prius EV Hybrid car.
F&Iby StaffJune 15, 2026

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic

EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.

Read More →
Several illustrations of question marks on a surface
F&IJune 10, 2026

The Psychology Behind Menus That Increase Add-On Sales

There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.

Read More →
Man holding magnifying glass over sales volume paper.
F&IMay 29, 2026

Why Your F&I PVR Is Misleading You

Here’s a handy checklist of the numbers to track in 2026 instead.

Read More →
Ad Loading...
Photo of woman typing on a laptop as she sits on a couch
F&Iby Hannah MitchellMay 29, 2026

Auto Consumer Anxiety Presents Opportunity

A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.

Read More →
Dustin Gingerich standing on stage giving a presentation
F&Iby Lauren LawrenceMay 28, 2026

Humble and Hungry: 12 Rules for an F&I Life

Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.

Read More →
Photo of businessman's hands resting on files on a desk
F&Iby John TabarMay 27, 2026

Focus on the Opening

F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.

Read More →
Ad Loading...
Photo of a three-seat vehicle back seat
F&Iby Hannah MitchellMay 22, 2026

F&I Reaches for the Sky

The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.

Read More →
Ryan Ruff, The 90/10 Rule, Automotive Training Academy, Sales Series
F&IMay 6, 2026

The 90/10 Rule

In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.

Read More →
Ad Loading...
Photo of essential oil diffuser on desk next to laptop
F&IMay 4, 2026

Your Office Is Talking

What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.

Read More →