Premier Truck Group F&I revenue rises 12.5% YoY in Q2
Used-truck deliveries climbed 64.8% YoY
Improving freight conditions are drawing more owner-operators and small fleets into the used-truck market, supporting finance and insurance growth at Premier Truck Group.
By the numbers
Premier Truck Group’s second-quarter results included, according to parent company Penske’s earnings release today:
- Finance and insurance (F&I) net revenue increased 12.5% year over year to $4.5 million;
- F&I profit per vehicle retailed increased 12.4% YoY to $833;
- Total new- and used-truck deliveries increased 1.7% to 5,431 units;
- Used-truck deliveries increased 64.8% to 1,155 units, while new-truck deliveries declined 7.8% to 4,276;
- Used-truck gross profit per unit increased 26.8% to $8,923;
- Revenue declined 1.7% to $927.8 million;
- Income before taxes fell 12.9% to $47.2 million; and
- Premier Truck Group’s backlog totaled about 10,400 trucks.
Freight rates drive used-truck demand
Dry van, refrigerated and flatbed spot rates were at their highest levels since 2021, increasing demand among owner-operators and small fleets, Penske North American Operations Officer Rich Shearing said during today’s earnings call.
“The used-truck demand increase is driven by what we’re seeing in the spot-rate market,” he said.
New-truck production constraints are also expected to keep used-truck demand elevated, Shearing said.
“We anticipate the majority of those orders that we’ve taken to convert into retail sales in the second half of this year,” he said.
Shares of Penske Automotive Group (NYSE: PAG) were up 1.6% or $3.43 from market open to $223.44 as of market close today. The company has a market capitalization of $16.49 billion.
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