Lithia’s F&I operations grew its per-copy average by $52. The performance helped offset a $90 drop in new-vehicle gross profit per unit.
For the first time, the public dealer group’s F&I profit per deal average surpassed the $1,500 mark. Officials said the company will continue to emphasize F&I product sales as it preps for the launch of an AutoNation-branded maintenance contract later this year.
The tablet-driven, fixed-price F&I process at Asbury’s Q Auto stores didn’t perform as well as the traditional F&I process employed at the group's core stores, but officials said they are happy with the new format’s progress.
The auto finance industry broke new ground in several reporting categories in the first quarter. But not all records are meant to be broken.
The Kerrigan Quarterly Blue Sky Report also finds that blue sky pricing remains high for most franchises, with the market having established a pricing floor.
Despite the harsh weather, used-vehicle sales continued to motor along in the first quarter of the year. Keeping demand high were insurance vehicle replacements and tax refunds.
In the first quarter of 2013, 30-day auto loan delinquencies rose 1.3 percent, 60-day delinquencies increased 12.4 percent and repossessions rose 16.9 percent when compared with the previous year.
First-quarter net income was up 26.5 percent for the dealer group, while total gross profit grew 15.4 percent on 18 percent higher revenues.
All signs pointed to a great fourth quarter, but there was some cause for concern — just not enough to keep cars from rolling over the curb.
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