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Monday, 03 August 2020 20:19

Challenging Quarter for Penske's Used-Car Stores, but June Shows Rebound

Written by Joe Overby, Auto Remarketing

Index

Like it was for many retailers in the automotive space, it was a challenging second quarter and first half for Penske Automotive Group’s Used Vehicle SuperCenters due to the COVID-19 pandemic.

But some bright spots emerged for these stores toward the end of Q2, according to a rundown of quarterly results released by the retailer on July 29.

 

Penske said it had to suspend operations at essentially all of its 16 Used Vehicle SuperCenters in the U.S. and U.K. during April and May, amid shelter-in-place orders. This action led to a 61% dip in same-store sales in the U.S., with U.K. sales falling 100%.

 

“However, beginning in June, as many shelter-in-place rules began to be lifted, sales of used units rebounded and profitability more than doubled when compared to the same period last year,” the retailer said in a news release.

 

Penske’s SuperCenters moved 6,600 units during the quarter, a 62.9% year-over-year decline, with revenue at $132.6 million, a 57.5% drop.

 

The SuperCenters have sold 22,912 units year-to-date, a 36% year-over-year drop, with revenue at $438.1 million, a 30.1% slide.

 

Looking at overall used-car results, Penske retailed 42,606 used vehicles during the quarter, a 40.9% decrease. For the first half of the year, it had 105,656 used retail sales, a 27% decline.

 

Used retail revenue for the quarter was down 37.1% at $1.17 billion, with first-half used retail revenue at $2.79 billion, a 24.8% drop.

 

Used retail gross profits were down 45.1% at $55.8 million in Q2. Year-to-date, they are down 27.1% at $141.7 million.

 

Revenue per used vehicle retailed was up 6.5% at $27,368 in the quarter and it climbed 3.1% for the first half to $26,365.

 

Gross profit per used vehicle retailed fell 7.1% to $1,310 during the quarter, but it was steady with year-ago figures for the first half at $1,341.


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