Car dealerships saw a significant increase in finance and insurance revenue last year.
According to Automotive News’ second annual F&I survey of the nation’s largest auto dealership groups, F&I income in 2014 topped the $7-billion mark, an increase of 15 percent compared to 2013. The survey looked at the top 150 dealership groups based in the U.S., as ranked by new-vehicle retail sales in 2014, with the results coming from 141 groups that provided finance data for both 2013 and 2014.
Of the total 141 groups, 120 of them saw an increase in total F&I revenue while 103 average over $1,000 in F&I revenue for every new and used vehicle that left the dealership lot.
The 12 dealership groups making up the $100-million club averaged a 23-percent increase in F&I revenue last year, generating $3.6 billion, just over half of the total $7.2 billion for the 141 groups. AutoNation led all the groups with about $750 million in F&I income last year, up 11 percent.
The groups that saw a decline, 21 in total, had mostly single-digit decreases, although it ranged from 0.3 to 33 percent. From the remaining 120 groups, 79 posted at least double-digit gains and the top 10 each saw at least a 40-percent boost.
[Source: Automotive News]