Sonic Realizes 14 Percent Profit Increase in 2011
Sonic Automotive Inc. reported the company’s total 2011 revenues were up 14 percent year over year. Total fourth quarter revenues were up 12 percent from the year-ago quarter as well.
CHARLOTTE, N.C. — Sonic Automotive Inc. reported the company’s total 2011 revenues were up 14 percent year over year. Total fourth quarter revenues were up 12 percent from the year-ago quarter as well.
New-vehicle retail volume was up 15 percent in the fourth quarter 2011, while used-vehicle volume increased 11 percent for the quarter. The company’s parts and service revenue also increased, experiencing a 3 percent uptick during the reporting period and a 5 percent increase for full year.
"Our team's focus on used-car processes has produced double-digit volume growth for 11 consecutive quarters. This translates into a 15 percent compound annual growth rate over the last four years,” said Jeff Dyke, Sonic Automotive Inc. executive vice president of operations. “We continue to believe there are significant future growth opportunities throughout the business as we continue the implementation of our strategic initiatives. The top line growth continued to drive incremental gross profit dollars, which allowed us to further leverage our expense structure with fourth quarter adjusted SG&A to gross profit coming in at 76.6 percent which is the lowest level in several years."
Wrapping up its strongest years in company history, officials said the dealer group expects to see steady growth this year and expects the new-vehicle industry to end 2012 at 13.5 million units.
More Auto Finance

Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →