The Dealership Boom Is Cracking: $120 Million Gone in One Quarter, and Buyers May Pay for It in the Finance Office
Lithia & Driveway's Q2 adjusted net income fell 5% YoY to $227.6M, while EPS rose 9% to $10.03. Six major dealer groups saw combined profit drop 11% to $951M, with all firms reporting declines. Gross profit per new vehicle fell 12.3% to $3,161, with companies using share buybacks to boost EPS. Penske Automotive Group is being acquired for $16.3B. Service and finance operations are increasingly important for profitability.
