Dealership groups' hot F&I revenue: $7 billion

Financing and insurance sales keeps soaring at U.S. car dealerships. By any measure in Automotive Information' 2nd annual F&I study of the state's biggest auto dealership teams, the F&I office is warm, hot, hot. The study checked out the automobile retailers on Automotive News' list of the best 150 car dealer groups located in the US, as rated by new-car retail revenue in 2014. The outcomes are drawn in the 141 groups that supplied financing data for both 2014 and 2013.Collectively, these teams topped the $7 billion mark in F&I revenue in 2014, up 15-percent from the year before. Among the 141 teams, 120 improved overall F&I sales and 103 averaged more than $1,000 in F&I sales for every new and used-vehicle they offered last year. The rate was even quicker among the greatest players.$100-million club

The 1 2 car dealer groups creating the $100-million club averaged a 2 3% boost in F&I sales last year. The twelve generated $3.6 billion in F&I sales, only over half of the $7.2 billion complete for the 141 teams. Eleven car dealers in the $100-million club were members in 2013 at the same time. AutoNation Inc., which led both years, had about three-quarters of a billion dollars in F&I revenue in 2014, up 1 1%. The club starter is Greenway Automotive, where F&I revenue skyrocketed 6-1% in 2014 to $133.5 million. The $100-million club comprises the six publicly-owned new-car dealership teams. But even the independently owned members are big groups, each with 2014 total income from many sections above $2 billion, new-car sales of at least 45,000 and employed quantity of 20,000 automobiles or more. And the $100-million club members all have huge amounts of car dealers, including a high of 244 roof-tops for Penske Automotive Group into a low of 32 for Staluppi Auto Group. With an increase of roof tops over which to organize group F&I methods, 11 of the 1 2 large groups managed to raise their 2014 F&I earnings by a higher percent than they did new-car unit sales. Even the exception, Ken Garff Automotive Team, did nicely. It increased F&I sales by 26 percent, but that did not quite fit its 28 percent increase in new-car quantity. Prevalent prosperity

While F&I gains were strongest at the best, the 141-team roll also revealed lots of increase. By way of example, 120 groups raised F&I sales in 2014 while only 21 dropped floor. One of the victor, 79 posted at least double digit increases, as well as the best 10 each increased 40 percent or even more. By comparison, the 2 1 declines ranged from 3 3 to 0.3%, with most in the single-digits. Most teams also grew F&I sales per car in 2014, with 102 lifting per-car profit, 37 dropping floor and two groups staying level with year-earlier levels. Richardson & Companions, a five-shop group located in Albuquerque, N.M., led the pack with $5,271 per-unit in F&I sales, up 2.8% from a year before, on 7,059 new and 5,336 utilized autos. In another end of the spectrum, Ray Catena Motor-Car Corp. of Edison, N.J., averaged $307 per-unit in 2014 on 22,164 new and used revenue.

Leading the packThe 25 car dealer groups using the greatest average F&I sales per new and used retail car in 2014. Average F&I earnings per vehicle sold% differ from from 20131Richardson & Companions$5,27132Safford Automotive Team$2,28353Southwest Supplier Team$2,246904Zeigler Car Team$2,15565Ancira Businesses$2,10846Bob Moore Auto Group$2,078None7Allen Samuels Enterprises$2,049238Rusnak Car Team$1,99859Ken Garff Automotive Group$1,981210Larry H. Miller Team$1,9541511Hendrick Automotive Group$1,908812Impetus Auto Team$1,8461212Greenway Automotive$1,8463514McCombs Automotive$1,824615Dave Smith Car Team$1,7511116Chapman Automotive Team$1,740417Future Automotive Team$1,7221318Staluppi Car Team$1,7042719Shammas Automotive Team$1,689-420David Stanley Car Group$1,664321John Eagle Car Team$1,650622Fletcher Jones Automotive Group$1,647523Cardinale Automotive Team$1,639424Magnussen Car Dealer Group$1,637525Lindsay Automotive Team$1,628-24Note: Information drawn from Automotive Information' list of the best 150 car dealer groups centered in the United States as quantified by 2014 new-car retail sales. Source: Automotive News Information CenterThe $100-million club2014 F&I sales in millions AutoNation*$750.80Penske Automotive Team$435.70Team 1 Automotive*$366.50Van Tuyl Group**$354.30Hendrick Automotive Group$351.10Sonic Automotive*$300.00Asbury Automotive Group*$229.00Larry H. Miller Group$200.60Lithia Motors*$190.60Ken Garff Automotive Group$185.30Staluppi Car Team$148.90Greenway Automotive$133.50*Openly held**Berkshire Hathaway Inc. completed its purchase of Van Tuyl Team on March 9, 2015.Source: Automotive News Datacenter-Largest gainersDealership teams with raises of 20% or more in typical F&I sales per new and used-vehicle retailed in 2014 Average F&I sales per device retailed% differ from from 2013Southwest Supplier Team$2,24690Garber Direction Group$95581Success Automotive Team$1,29380Servco Pacific$1,08066Serra Automotive Team$1,37940Greenway Automotive$1,84635Staluppi Car Team$1,70427Fox Motors$94727Ken Page Car Team$1,10724Allen Samuels Enterprises$2,04923Kenwood Supplier Team$84022FRL Automotive$1,07521Grossinger Car Team$1,51620

It's possible for you to reach Jesse Snyder at [email protected].

Labels:
Dealers
Finance & Insurance
Retail

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08.06.2015
ID:2227

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