All 6 public dealership groups raise F&I profit per vehicle

All 6 public dealership groups raise F&I profit per vehicle https://ift.tt/2GEnPJN

F&I profits rose in the second quarter despite dwindling new-vehicle sales, which typically offer more profitable F&I product sales opportunities.

Used vehicles provide big opportunities for lenders, TransUnion says

Used vehicles provide big opportunities for lenders, TransUnion says https://ift.tt/2ZnaFZb

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.

Customer financial health key for lenders in a downturn

Customer financial health key for lenders in a downturn https://ift.tt/330VEOW

Auto lenders need to keep a close eye on customers to stay profitable as new-vehicle sales cool and economic growth slows.

Canada dealers warned to be vigilant after bust of auto theft ring

Canada dealers warned to be vigilant after bust of auto theft ring https://ift.tt/2SSYbpI

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 Q2 net income falls 12%

Penske Automotive's Q2 net income falls 12% https://ift.tt/2Zj9J7X

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.

Sonic names 2 new directors, expands board to 10

Sonic names 2 new directors, expands board to 10 https://ift.tt/2Zj4LIn Automotive no longer has a majority independent board following the election of two new directors.

U.S. sales may fall for 7th straight month

U.S. sales may fall for 7th straight month https://ift.tt/32Zqeby

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.

Used-vehicle shift pays off for public retailers

Used-vehicle shift pays off for public retailers https://ift.tt/2Zkg43c

As companies scramble to get their used houses in order, Group 1 CEO Earl Hesterberg calls the change "fundamental" -- and permanent.

Santander expands business with FCA

Santander expands business with FCA https://ift.tt/2LLCBmg

The lender also replaced its CFO and its head of Chrysler Capital and auto relationships.

Kids today like auto retail

Kids today like auto retail https://ift.tt/310vjyt

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.

VW adjusts warranty, adds money for ads

VW adjusts warranty, adds money for ads https://ift.tt/315kFGH

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.

OBITUARY: Donald Ayres

OBITUARY: Donald Ayres https://ift.tt/2ZfJhMJ

Donald Ayres, founder of Don Ayres Honda, died July 6. He was 76.

Dealer anniversaries

Dealer anniversaries https://ift.tt/2LNM8co

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.

Rosenberg suit alleges financial misconduct

Rosenberg suit alleges financial misconduct https://ift.tt/2LNap2u

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.

AutoNation's Miller ?CEO-ready'

AutoNation's Miller ?CEO-ready' https://ift.tt/2LLlHnR

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.

Washington area mega-dealer Robert Rosenthal dies at 91

Washington area mega-dealer Robert Rosenthal dies at 91 https://ift.tt/2ydg09w

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.

Robert Rosenthal, metro Washington mega-dealer, dies at 91

Robert Rosenthal, metro Washington mega-dealer, dies at 91 https://ift.tt/2YkjykJ

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.

Asbury Q2 profits rise despite slip in vehicle sales

Asbury Q2 profits rise despite slip in vehicle sales https://ift.tt/2YpC937

Gains in finance and insurance and service and parts compensated for declines in new-vehicle gross profits.

Group 1 weathers storms

Group 1 weathers storms https://ift.tt/2y9GHvE

Profits at the dealership group rose after adjustments for bad weather and other charges. Parts and service and F&I helped drive the gains.

Musk completes dizzying 360-degree turn on his plan for retail outlets

Musk completes dizzying 360-degree turn on his plan for retail outlets https://ift.tt/2Yiek9o

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. 

Record-high used sales drive Q2 profits at Sonic

Record-high used sales drive Q2 profits at Sonic https://ift.tt/2ycXGNC

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.

Lithia posts higher Q2 profit, record revenue on across-the-board gains

Lithia posts higher Q2 profit, record revenue on across-the-board gains https://ift.tt/2JQD30v in same-store finance and insurance, parts and service and used-vehicle sales primarily drove the improvement.

Pat Ryan, father of F&I, inducted into Automotive Hall of Fame

Pat Ryan, father of F&I, inducted into Automotive Hall of Fame https://ift.tt/2Y0YnJt

Ryan was recognized for creating the first finance and insurance deapartment.

Dealerships could make progress recruiting younger workers, study says

Dealerships could make progress recruiting younger workers, study says https://ift.tt/32KKSvU

Cox Automotive's 2019 Dealership Staffing Study indicates many employees are seeking improved work-life balance and advancement options.

AutoNation Q2 net income from continuing operations rises 3.7%

AutoNation Q2 net income from continuing operations rises 3.7% https://ift.tt/32JaUjk

While new-vehicle revenues fell, AutoNation posted revenue gains in used vehicles, parts and service and F&I.

AutoNation Q2 net income rises 3.7%

AutoNation Q2 net income rises 3.7% https://ift.tt/2M80Vhu

While new-vehicle revenues fell, AutoNation posted revenue gains in used vehicles, parts and service and F&I.

AutoNation names Cheryl Miller CEO; Liebert leaves after 4 months

AutoNation names Cheryl Miller CEO; Liebert leaves after 4 months https://ift.tt/2JVVpMg

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. 

AutoNation promotes Miller to CEO as Liebert departs

AutoNation promotes Miller to CEO as Liebert departs https://ift.tt/2JNA8pr

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.

Hyundai outlines U.S. sales plan amid quarterly profit rise

Hyundai outlines U.S. sales plan amid quarterly profit rise https://ift.tt/2YmKkgk

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.

Texas dealer goes all-in on plan to revive Mitsubishi's image

Texas dealer goes all-in on plan to revive Mitsubishi's image https://ift.tt/2SxYk1x

Dealer Doug Baum sees his $13.5 million investment into a premium-style Mitsubishi store as "a very, very safe bet."

Dealer anniversaries

Dealer anniversaries https://ift.tt/2GApm3R

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.

Ford's sales of big trucks surge after shift to U.S.

Ford's sales of big trucks surge after shift to U.S. https://ift.tt/2M6dfic production to Ohio from Mexico in 2015 made it easier for dealers to sell and service the F-650 and F-750.

GM, FCA lead in minority dealer additions

GM, FCA lead in minority dealer additions https://ift.tt/2YbulBL

Fiat Chrysler, which had 177 minority-owned stores at the end of 2018, surpassed Ford for the No. 2 spot behind GM's 278.

Ally's auto originations inch up in Q2

Ally's auto originations inch up in Q2 https://ift.tt/32rWgg6

Used-vehicle loan originations accounted for more than half of Ally's auto originations for the sixth consecutive quarter.

Owner of Calif. dealership group reportedly killed in Mexico

Owner of Calif. dealership group reportedly killed in Mexico https://ift.tt/2Sn5llC

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.

Affinitiv, AutoLoop to merge, forming $200M data company

Affinitiv, AutoLoop to merge, forming $200M data company https://ift.tt/2LrDjF3

The resulting company would have more than 6,500 dealership customers and offer a wider range of technology products.

In Canada, long-term financing is getting longer

In Canada, long-term financing is getting longer https://ift.tt/30zjL5a

Auto loan terms of 96 months are offsetting an ongoing decline in new-vehicle incentives, but there’s increased risk for consumers. 

Charting an F&I evolution through the blueprint

Charting an F&I evolution through the blueprint https://ift.tt/2YYHWJQ

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.

Auto originations soar at Wells Fargo after overhaul

Auto originations soar at Wells Fargo after overhaul https://ift.tt/2GtwaAf

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.

Illinois trade-in tax change: one example of growing affordability challenge

Illinois trade-in tax change: one example of growing affordability challenge https://ift.tt/2xXjKLX

Affordability, an issue for car buyers nationwide, is becoming even more complex for consumers at the state level.

AutoCanada has its 3rd CFO in a year

AutoCanada has its 3rd CFO in a year https://ift.tt/2XQsrCp

Mike Borys begins his new role Aug. 12. He replaces Raj Juneja, who resigned from the dealership group in March.

Tesla drops cheapest Model X, S variants, cuts prices to simplify lineup

Tesla drops cheapest Model X, S variants, cuts prices to simplify lineup https://ift.tt/2JIoDOx

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.

Auto financing company Lendbuzz secures $150M in financing

Auto financing company Lendbuzz secures $150M in financing https://ift.tt/2XSOrwC

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. 

Car inventories run short after shifts in output

Car inventories run short after shifts in output https://ift.tt/2SfE7gI

While the number of light trucks rose slightly last month, the number of unsold cars fell to its lowest point since November 2011.

Tell us more

Tell us more https://ift.tt/2jXHf4a asked our 2019 40 Under 40 honorees: What is something people would be surprised to know about you?

Obituary: Dave Angelicchio

Obituary: Dave Angelicchio https://ift.tt/2XOiSnx former president of the National Auto Auction Association died in Pittsburg on July 7 at age 67 after a long battle with cancer.

Redesigned RDX crossover helps build excitement for Acura

Redesigned RDX crossover helps build excitement for Acura https://ift.tt/2ln5lFX

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.

Will closing on Sundays pay off for Mass. group?

Will closing on Sundays pay off for Mass. group? https://ift.tt/2jOMkvB

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.

Virginia dealers to appeal court decision allowing Tesla operations

Virginia dealers to appeal court decision allowing Tesla operations https://ift.tt/2NQANKx

The Virginia Automobile Dealers Association will appeal a June court decision that went in Tesla's favor.

Virginia Automobile Dealers Association to file appeal over Tesla operations

Virginia Automobile Dealers Association to file appeal over Tesla operations https://ift.tt/2LRBQrd

The Virginia Automobile Dealers Association will appeal a June court decision that went in Tesla's favor.