Group 1 broke the $2,500 mark through the first quarter with a median $2,504 same-store F&I revenue on each deal, up 30 p.c from a 12 months earlier.
Group 1’s same-store F&I income rose as properly, to $131.9 million, up 16 p.c in contrast with the identical time final 12 months.
The firm known as the achieve primarily the results of elevated income from finance, automobile service contracts and different F&I merchandise in addition to larger penetration charges.
“Our F&I attachment rate is high,” Group 1 U.S. operations President Daryl Kenningham advised buyers in April.
Pete DeLongchamps, Group 1 senior vp of producer relations, monetary providers and public affairs, mentioned Group 1 made a 1 share level margin for arranging financing, which he mentioned “we’re comfortable with.”
The beneficial properties displayed by Group 1 resulted from elevated product penetration and success with extra prospects, he mentioned.
Group 1 CEO Earl Hesterberg additionally advised buyers that ought to automobile or finance margins soften, prices would possibly fall to courtroom demand — however demand would develop.
“The power of F&I is in incremental volume,” Hesterberg mentioned.
Higher gross sales quantity would show to be “a powerful offset” for a hypothetical $200 decline per automobile, he mentioned.
Group 1, of Houston, ranks No. 4 on Automotive News‘ prime 150 dealership teams checklist, with retail gross sales of 146,072 new automobiles in 2021.