By Jonah Gjertson, Senior Consultant at Blue & Co.

Starting Point

The first half of 2026 has remained relatively stable among the public dealership groups, with new profit per vehicle retailed (nPVR), used profit per vehicle retailed (uPVR), and Finance and Insurance profit per vehicle retailed (fPVR) each showing strength through the year. The sampled public dealership groups are Lithia & Driveway, Penske Automotive Group, Sonic Automotive, Asbury Automotive Group, and AutoNation. While nPVR has dipped in Q2, uPVR and fPVR remain elevated, as shown below:

Retail Vehicle Update

nPVR continued to decline during Q2 2026. For the five public groups included in our data, median nPVR was $2,872, down 8.7 percent from Q1.

Penske continued to lead the group in new-vehicle PVR at $4,782, which reflects its mix of premium and luxury brands. AutoNation reported the lowest nPVR in the sample at $2,381, while Lithia, Sonic, and Asbury were all in the high-$2,000 range.

The current nPVR environment is still strong compared with pre-pandemic levels. The difference is that dealers can no longer rely on limited inventory and minimal discounting to drive front-end gross. Better inventory availability, manufacturer incentives, and consumer affordability concerns are all pushing groups to make more deliberate decisions around pricing, turn, and volume.

uPVR provided support in the first half of the year. In Q2, median uPVR was $1,927, an increase of 14.2 percent from the previous quarter. Asbury Automotive Group attributed the increase to a more selective auction process and refraining from chasing sales volume.

F&I remained the most consistent category. Median fPVR decreased 4.0 percent to $2,214 from $2,307 in the previous quarter. Median fPVR has been between $2,000 and $2,300 since Q1 2024.

PVRs and Expectations

New – New-vehicle margins have likely compressed to the lowest point this year. While there will be differences by brand and market, the overall environment is becoming more competitive, and new vehicle models are arriving at most brands. We are increasing our forecast from $2,900 nPVR to $3,000 nPVR.

Used – As expected, used vehicle performance continues to be a bright spot in 2026. The affordability gap between new and used vehicles continues to support demand, and trade-ins remain an important source of inventory for franchised dealers. However, used-vehicle profitability can change quickly as wholesale values, interest rates, and consumer demand shift. We are increasing our forecast from $1,700 to $1,800 uPVR.

F&I – F&I has remained steady. Strong lender relationships, consistent sales-to-F&I processes, product penetration, and compliance will remain important to maintaining performance. Higher payments and tighter underwriting could create some pressure, but the public groups have shown that F&I can remain a stable contributor to total variable gross. We are increasing our forecast from $2,000 to $2,100.

Positioning for Sustainable Profitability

Public dealership groups continue to demonstrate that dealerships can remain profitable as the market normalizes. nPVR is stabilizing, and used vehicles and F&I are showing moderate gains. Fixed operations are also becoming increasingly important as variable margins become more competitive. AutoNation’s record after-sales gross profit in the second quarter is one example of the continued importance of fixed operations in the overall earnings model.

The dealerships that perform best will be the ones that continue to focus on the basics: disciplined inventory management, strong used-vehicle acquisition and turn, consistent F&I processes, expense control, and investment in fixed operations. The market is breaking away from reliance on elevated new-vehicle margins.

Data

Navigating a More Competitive Dealership Market

As dealership profitability becomes less dependent on elevated new-vehicle margins, operational discipline across variable and fixed operations is increasingly important. Contact your Blue & Co. advisor to discuss how current market trends may affect your dealership’s performance, planning, and profitability strategy.

About Us

Jonah Gjertson, Senior Consultant with Blue & Co., is a seasoned professional with a background in corporate development and business valuation. From 2022 to 2025, he served as a Corporate Development Analyst at Gee Automotive Companies, where he contributed to strategic growth initiatives within the retail automotive sector. His experience spans equity evaluation, financial modeling, and strategic consulting, and he has been praised for his analytical rigor and collaborative leadership in both academic and professional settings.

Sources:

• Various companies. Investor Relations Materials and Earnings Calls. 2025. Public filings of General Motors, Ford Motor Company, Lithia Automotive, Sonic Automotive, Asbury Automotive, AutoNations and Penske Automotive.