Asbury Automotive Group, Inc. (ABG): Business Model Canvas [Dec-2025 Updated]

You're looking past the sticker price to see how Asbury Automotive Group (ABG) actually generates profit in late 2025, and the simple truth is they've built a powerful, two-engine machine. The first engine is their omni-channel retail strategy, centered on the Clicklane digital platform, which is designed to make the vehicle purchase seamless across their 150+ physical dealerships. But the second, and more defintely profitable, engine is the high-margin, recurring revenue stream from Finance & Insurance (F&I) products and their Parts & Service operations, so understanding this shift from a volume game to a profit-per-customer model is crucial for mapping their near-term value.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Key Partnerships

You cannot scale a retail operation like Asbury Automotive Group (ABG) to a Fortune 500 level without deep, strategic partnerships. These relationships are not just transactional; they are fundamental to inventory flow, financing, and the technology that underpins the entire customer experience, especially with the company's aggressive growth strategy that included the acquisition of The Herb Chambers Companies in 2025.

The core of ABG's Key Partnerships is a balanced ecosystem of manufacturers for new car supply, financial institutions for capital and customer credit, and specialized technology firms that power the digital-first approach of Clicklane.

Top-tier original equipment manufacturers (OEMs) for new vehicle supply

The relationship with OEMs is the lifeblood of the new vehicle segment, which saw a surge in Q3 2025, with new vehicle revenue increasing by $365.4 million (17%) for the quarter.

As of September 30, 2025, ABG operates 230 franchises representing 36 domestic and foreign brands of vehicles. This diversification is a key risk mitigator, ensuring the company is not overly dependent on any single manufacturer's production or tariff issues.

The strategic focus remains on high-margin segments, with the brand mix heavily weighted toward imports and luxury vehicles:

• Luxury Brands: 31% of revenue mix
• Import Brands: 41% of revenue mix
• Domestic Brands: 29% of revenue mix

The sheer number of franchises means that managing these relationships, from inventory allocation to facility standards, is a massive operational effort. You must keep the OEMs happy, or your supply dries up.

Captive and third-party finance institutions for financing and insurance (F&I) products

ABG's financial partnerships serve two critical functions: providing capital for the company's operations (like floorplan financing) and facilitating customer financing and insurance (F&I) products. The F&I segment is a high-margin business, and ABG offers both third-party options and its own in-house products.

For customer F&I, ABG uses a network of third-party finance institutions to arrange vehicle financing, plus they drive their own proprietary F&I product line through Total Care Auto, Powered by Landcar (TCA). TCA is a major provider of extended service contracts and other vehicle protection products, which was a strategic asset acquired in the Larry H. Miller Dealerships deal. For corporate financing, the scale of their partners is massive, exemplified by the $546,528,750 Real Estate Facility borrowed in July 2025 to finance the Herb Chambers acquisition. That's a lot of debt, but it's the cost of growth.

Partnership Type	Key Partner Entities (2025)	Primary Function
Corporate Financing / Floorplan	Bank of America, N.A.	Administrative Agent for Senior Credit Facility, Used Vehicle Floorplan Lender
Corporate Financing / Real Estate	Wells Fargo Bank, National Association	Administrative Agent and Lender for the $546.5 million Real Estate Facility
Customer F&I (In-House)	Total Care Auto, Powered by Landcar (TCA)	Proprietary provider of service contracts and aftermarket products
Customer Financing (Third-Party)	Mercedes-Benz Financial Services USA LLC, Toyota Motor Credit Corporation, and other banks	Co-Documentation Agents and Lenders for customer and floorplan credit

Technology providers to maintain and evolve the Clicklane digital platform

Clicklane is ABG's omnichannel (online-to-in-store) sales platform, and it is built on a foundation of external technology partnerships. The company's original five-year plan aimed for an incremental $5 billion of revenue from Clicklane by 2025, which shows the platform's strategic importance.

These technology partners ensure the platform offers a true end-to-end digital experience, from initial browsing to final purchase and ownership, and they are defintely not just plug-ins.

• Gubagoo: Powers the core e-commerce solution, providing the Virtual Retailing 2.0 platform for a seamless digital transaction.
• Salty: Provides embedded insurance, delivering a bindable insurance quote through an AI-driven experience directly within the Clicklane checkout process.
• Insignia Group: Offers a vehicle customization and accessories platform, allowing customers to browse and purchase OEM accessories before finalizing their vehicle.

Major auction houses for used vehicle inventory acquisition and disposal

Used vehicle sales are a major revenue driver, increasing by $117.5 million (9%) in Q3 2025. To manage this volume, ABG relies on a dual-pronged approach: internal group trading and external wholesale channels.

The company developed a Group Trade platform in collaboration with CarOffer to automate inventory management and optimize profitability by allowing dealers within the ABG group to buy, sell, and trade vehicles internally. This in-group platform minimizes the need for costly external transactions. For wholesale disposal and acquisition beyond this internal network, ABG utilizes major national auction houses, such as Manheim and ADESA, which are the industry standards for wholesale vehicle management, though the specific volume split is proprietary.

Strategic relationships with key vendors for parts and service operations

The parts and service segment is highly profitable for ABG, representing a significant portion of the company's total gross profit. In Q1 2025, the parts and service segment generated 47.3% of the company's total gross profit.

These operations rely on a steady supply of Original Equipment (OE) parts from the 36 OEM brands they represent, as well as a network of third-party vendors for aftermarket parts, tools, and collision repair supplies. ABG operates 40 collision repair centers as of September 30, 2025, which requires deep vendor relationships with paint suppliers, body repair equipment manufacturers, and major parts distributors to maintain high throughput and quality control. The OEM relationships are crucial here, as they often mandate the use of genuine parts for warranty and service work.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Key Activities

The core of Asbury Automotive Group, Inc.'s business model centers on two key activities: aggressively consolidating the fragmented auto retail market through strategic acquisitions and driving higher-margin revenue from both digital sales and fixed operations (Parts and Service, and F&I). Your success hinges on the precise, efficient execution of these activities across a rapidly expanding footprint.

Managing and optimizing the expansive physical dealership network

Your primary activity is the strategic management and optimization of a large, geographically diverse portfolio of dealerships. This involves both organic performance improvements and significant acquisition activity to build scale. The major acquisition of The Herb Chambers Automotive Group, announced in the first quarter of 2025, is a massive undertaking, expected to inject approximately $3 billion in annual revenue into the company. This single move expands your footprint substantially.

As of September 30, 2025, Asbury Automotive Group operated a substantial network, which is the foundation for all other activities.

• Operated 175 new vehicle dealerships.
• Represented 230 franchises across 36 domestic and foreign brands.
• Included 40 collision repair centers.

The operational activity is to leverage this scale to gain efficiencies, like the expansion of the Tekion platform to all stores in the Baltimore-DC market, which helps standardize operations and lower selling, general, and administrative (SG&A) costs.

Executing the omni-channel sales strategy through Clicklane

The omni-channel strategy, centered on your proprietary platform, Clicklane, is a critical activity for future growth. This platform allows for an end-to-end digital car buying experience, which is essential for meeting modern consumer expectations. In Q2 2025 alone, the Clicklane platform facilitated 9,500 transactions, showing real traction in the digital channel.

This activity isn't just about selling cars; it's about boosting productivity across the entire organization. Here's the quick math: digital tools like Clicklane are projected to boost productivity by 10-15% over a two-year period, a direct impact on your operating leverage. You're building a seamless transition between online and in-store, and that requires defintely constant technological refinement.

Maximizing high-margin finance and insurance (F&I) product penetration

F&I is a high-margin engine for the business, and maximizing its penetration is a core activity. This segment contributed about 25% of your gross profit in Q1 2025, underscoring its importance over the lower-margin vehicle sales. The key metric here is Finance and Insurance Per Vehicle Retailed (F&I PVR).

In Q3 2025, your F&I PVR was $2,182, which was a 2% increase year-over-year. This is a strong, consistent number that shows the effectiveness of your sales process and the value of your proprietary products through Total Care Auto, Powered by Landcar (TCA), which offers extended service contracts and other protection products.

Acquiring, reconditioning, and retailing used vehicles efficiently

The used vehicle business requires a highly efficient, high-turnover process-acquisition, reconditioning, and retail. Your strategy has shifted to a 'less-is-more' focus, prioritizing margin over raw volume in a challenging used vehicle market.

While the market saw volatility, your operational activity delivered improved profitability. In Q2 2025, used vehicle retail gross profit increased by 11%, even as unit volume decreased by 6%. By Q3 2025, this activity stabilized, with used vehicle retail unit volume increasing by a modest 1%, but retail revenue rising by 7%. This suggests the focus on gross profit per unit is working.

Providing high-quality, recurring parts and service maintenance

This is the most stable and highest-margin activity in the auto retail business, often called fixed operations. Your focus here is on recurring revenue and customer retention post-sale. You are seeing strong, consistent growth here, which is a sign of a healthy customer base and efficient service centers.

The financial results from 2025 show this segment's strength:

Metric (2025 Data)	Q1 2025	Q3 2025	Year-over-Year Growth (Q3 2025)
Parts & Service Gross Profit	$343 million (All-time record)	-	15% rise
Parts & Service Revenue	Flat	-	11% increase
Same Store Parts & Service Gross Profit Growth	5% increase	-	7% growth

The Q1 2025 all-time record of $343 million in Parts & Service gross profit shows this activity is a major operational strength, contributing 343 million in Q1 2025. This recurring revenue stream provides a vital cushion against the cyclicality of new and used vehicle sales.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Key Resources

For a business like Asbury Automotive Group, Inc., Key Resources aren't just the physical buildings; they are the digital infrastructure and the financial muscle that makes the whole operation scalable. You need to think about the proprietary technology and the sheer volume of capital that supports a multi-billion-dollar revenue stream. The core resources here are a mix of intellectual property, physical assets, and financial strength.

The proprietary, scalable Clicklane end-to-end digital retail platform

The Clicklane platform is a defintely critical intellectual resource, acting as the digital spine for the entire customer journey. This isn't just a website; it's a fully integrated communications technology ecosystem that allows for a true online car-buying and selling experience. It was a key part of the company's 2020 five-year strategic plan, originally targeting an incremental $5 billion in revenue by 2025.

The system removes the typical friction points of a dealership visit. For example, it provides penny-perfect trade-in values and real-payment figures based on local taxes and fees. During the second quarter of 2025 alone, the platform facilitated 9,500 transactions. That's a huge volume of business flowing through a single digital channel. Plus, its loan marketplace connects customers to more than 30 lenders.

A large, geographically diverse portfolio of franchised dealerships

The physical network of dealerships is the foundation of ABG's omni-channel strategy. As of June 30, 2025, Asbury Automotive Group operated 145 new vehicle dealerships. This physical footprint is backed by 189 franchises representing 31 domestic and foreign brands.

The company operates across 14 states, which helps mitigate local economic or weather-related risks. Florida, for instance, holds the largest concentration, with 26 dealers. The strategic acquisition of The Herb Chambers Automotive Group, expected to close in 2025, will significantly enhance this resource, expanding the footprint to 178 dealerships and adding geographic diversification in the vital Northeast vehicle market.

Highly trained sales, F&I, and certified service technicians

The human capital-the people who actually deliver the service-is a non-negotiable asset in a service-intensive business like auto retail. Asbury Automotive Group employs approximately 15,000 total employees. This large, skilled workforce is essential for maintaining high-margin segments like Parts & Service and Finance & Insurance (F&I).

Here's the quick math: Parts & Service generated an all-time record gross profit of $343 million in the first quarter of 2025. That kind of performance is only possible with a deep bench of certified service technicians and F&I specialists who can execute on complex, high-value transactions. Digital tools like Clicklane and Techeon are also used to boost the productivity of this human resource by an estimated 10% to 15%.

Significant capital and inventory to support sales volume

You can't sell cars without cars, and you can't buy dealerships without cash. Financial resources and inventory are the fuel for ABG's growth engine. The company maintains a strong liquidity position to support its aggressive acquisition strategy and daily operations.

As of June 30, 2025, the company reported total liquidity of $1.1 billion. This includes cash, floorplan offset accounts, and availability on credit facilities. For the entire fiscal year, Asbury Automotive Group anticipates a capital expenditure (CapEx) spend of approximately $250 million for both 2025 and 2026, showing a clear plan for physical investment.

Key Resource Metric	Value (Late 2025 Data)	Source/Context
Total Liquidity (Q2 2025)	$1.1 billion	Cash, floorplan offset, and credit facility availability
Anticipated 2025 CapEx Spend	$250 million	Planned capital expenditures for the year
New Vehicle Dealerships (Q2 2025)	145	Number of new vehicle dealerships operated
Total Employees	15,000	Total number of employees across the organization
Clicklane Q2 2025 Transactions	9,500	Number of transactions facilitated by the digital platform

Strong, established brand equity with manufacturer partners

Brand equity here is less about the consumer-facing logo and more about the relationships with the original equipment manufacturers (OEMs). This is an intangible, yet vital, asset. Being a Fortune 500 company and one of the largest automotive retailers grants Asbury Automotive Group significant leverage and preference with manufacturer partners.

This allows them to secure a diverse and stable supply of new vehicles across 31 domestic and foreign brands. The long-standing relationships are the reason they can continue to grow through acquisitions, like the $1.45 billion acquisition of The Herb Chambers Automotive Group, which adds a significant luxury vehicle focus to their portfolio.

The sheer scale of their operations is the key to maintaining this resource:

• Represent 31 major automotive brands.
• Operate 189 franchises across the US.
• Ranked No. 242 on the 2025 Fortune 500 list.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Value Propositions

You are looking at a retail model that has successfully married physical scale with digital efficiency. Asbury Automotive Group, Inc.'s core value proposition is simple: deliver a complete, transparent, and convenient vehicle ownership lifecycle, whether you prefer to shop on your couch or in a showroom. This blend of massive inventory and seamless digital tools is what drives their record financial performance in 2025.

True omni-channel experience: seamless transition between online and in-store

The biggest value-add here is eliminating the friction between online browsing and in-store closing. Asbury's proprietary digital platform, Clicklane, is the engine for this. It allows for a complete, end-to-end transaction online, from trade-in valuation to financing and final purchase, which is defintely a game-changer for customer convenience.

The company's investment in digital infrastructure is a key differentiator. For example, the rollout of the Tekion Dealer Management System (DMS) to all stores in the Baltimore-DC market during the third quarter of 2025 is a concrete step toward unifying the customer experience and streamlining back-office operations. This focus on digital resilience was highlighted when the Clicklane platform achieved record sales of 15,201 units in Q2 2024, demonstrating its ability to maintain sales volume even during industry-wide operational disruptions like the CDK Global cyberattack. That is a clear sign of a robust platform.

Broad selection of new and used vehicles across multiple brands

Scale is a core value proposition for a modern auto retailer, and Asbury has executed on its acquisition-led growth strategy to deliver it. As of September 30, 2025, Asbury Automotive Group operated 175 new vehicle dealerships, which collectively represent 230 franchises and a portfolio of 36 domestic and foreign brands of vehicles. This massive selection is a direct benefit to the customer, offering a one-stop-shop for nearly any vehicle segment or brand preference.

The July 2025 acquisition of The Herb Chambers Automotive Group, expected to add approximately $3 billion in annual revenue, significantly expanded its presence and luxury brand mix, especially in the New England region. This acquisition-driven growth ensures a deep inventory, which is crucial in a market still facing supply-chain volatility. Here's the quick math on the recent growth:

• New vehicle unit volume increased by 13% in Q3 2025.
• Used vehicle retail unit volume saw a modest increase of 1% in Q3 2025.

Transparent, simplified vehicle purchase process with Clicklane

The value proposition of Clicklane lies in its transparency and speed, translating the traditionally opaque and slow dealership process into a clear, digital workflow. The platform integrates all steps-pricing, trade-in, financing, and accessories-into a single, simplified interface. This is how they aim to cut the transaction time down to minutes, not hours.

The digital process is supported by the company's commitment to a single-price model in its used vehicle operations, which removes the negotiation stress for the customer. Transparency builds trust, and trust is a powerful value proposition in a high-ticket retail environment.

Reliable, certified vehicle maintenance and repair services

The parts and service segment is the high-margin, counter-cyclical anchor of the business, providing essential post-sale value. This segment offers certified maintenance, genuine parts, and collision repair through a network that includes 37 collision repair centers. This is a critical source of recurring revenue and customer retention.

The financial performance of this segment in 2025 confirms its value as a stable and growing proposition. Parts and service gross profit was an all-time record of $355 million in Q2 2025, and in Q3 2025, the segment's gross profit saw an increase of 15% year-over-year.

Segment	Q3 2025 Revenue	Q3 2025 Gross Profit	Year-over-Year Growth (Q3 2025)
Total Company	$4.8 billion	$803 million	13% Revenue Increase
Parts & Service	$659.4 million	$389.1 million	9% Gross Profit Increase

Comprehensive F&I options tailored to individual buyer needs

Asbury's Finance and Insurance (F&I) value proposition extends beyond simple loan origination; it's about offering comprehensive vehicle protection products. This is largely managed through the Total Care Auto, Powered by Landcar (TCA) segment, which is a leading provider of service contracts and other vehicle protection products.

The value is in the customized options-extended warranties, GAP insurance, and maintenance plans-that protect the customer's investment. The financial results show this is a highly effective value stream, with the F&I per vehicle retailed (PVR) reaching $2,182 in Q3 2025, an increase of 2% over the prior year. This PVR metric is a direct measure of how successfully the company is bundling these protection products into the core vehicle sale.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Customer Relationships

High-touch personal service at the dealership level for complex transactions

Asbury Automotive Group maintains a crucial high-touch, personal relationship channel through its physical network of dealerships, which numbered 175 new vehicle dealerships as of September 30, 2025. This model is essential for complex, high-value transactions, especially in the luxury segment, which was bolstered by the acquisition of The Herb Chambers Automotive Group. The relationship here is driven by the sales advisor's expertise and the service technician's trust, ensuring customers feel confident with a significant purchase.

This traditional, personal model is also the primary driver for high-margin Finance and Insurance (F&I) products. In the third quarter of 2025, the Finance and Insurance per vehicle retailed (PVR) reached $2,182, reflecting a 2% increase year-over-year. That's a clear indicator that the face-to-face interaction is defintely working to enhance the overall transaction value.

Automated, data-driven digital communication via the Clicklane ecosystem

The company's digital platform, Clicklane, serves as the primary automated and self-service channel, offering a complete end-to-end online car-buying and selling experience. This platform is a critical component of the 'guest-centric' strategy, providing transparency and convenience.

Clicklane's adoption demonstrates the shift toward digital-first relationships, even for new vehicles. Here's the quick math on its near-term adoption:

Metric	Q1 2025 Value	Q2 2025 Value	Notes
Total Clicklane Sales Units	Over 10,500 units	9,500 units	Represents fully online or digitally-initiated sales.
New Vehicle Sales via Clicklane	Approx. 5,000 units	N/A	About 47% of Q1 Clicklane sales were new units.

The platform also integrates technology like Salty's Embedded Insurance® to bundle insurance with the purchase, automating the customer's post-sale needs right at the point of transaction. This is how you use technology to start a long-term relationship, not just complete a sale.

Dedicated customer service for post-sale support and issue resolution

Post-sale customer relationships are anchored in the high-margin Parts and Service segment, which is the most stable and profitable part of the business model. This service relationship provides a recurring, non-cyclical revenue stream, cementing loyalty long after the initial sale.

The financial results show the strength of this dedicated support structure:

• Q3 2025 Same-Store Parts & Service Gross Profit Growth: 7%
• Q1 2025 Customer Pay and Warranty Service Growth: 9% combined growth
• Q1 2025 Parts & Service Gross Profit Margin: 58.3%

The company also operates 40 collision repair centers and Total Care Auto, Powered by Landcar (TCA), which provides extended service contracts and vehicle protection products. These dedicated, specialized units manage complex repairs and warranty issues, turning potential pain points into trust-building interactions.

Loyalty programs to drive repeat business in service and sales

While Asbury Automotive Group does not publicize a traditional points-based customer loyalty program, its entire strategy is a structural loyalty program built on convenience and high-margin service capture. The focus is on providing a consistent, trustworthy experience-a philosophy recognized by its inclusion in Newsweek's World's Most Trustworthy Companies 2025 list.

The real loyalty metrics are in the financials, specifically the recurring revenue from fixed operations (Parts & Service), which accounts for a disproportionate share of the company's profitability. This is the ultimate loyalty program.

• Parts & Service Contribution to Total Gross Profit: 47% (Q2 2025)
• Parts & Service Contribution to Total Revenue: 14% (Q2 2025)

This massive gross profit leverage proves that once a customer is acquired, the service relationship is highly effective at driving repeat, high-margin business.

Long-term relationship focus to capture lifetime customer value

Asbury Automotive Group's stated 'North Star' is to be the most guest-centric automotive retailer, which translates directly into a strategy to maximize Lifetime Customer Value (LCV). They achieve this by monetizing the entire ownership cycle, from the initial vehicle sale to financing, protection products, and decades of maintenance.

The key components for LCV capture are:

• Up-Front Monetization: High F&I PVR of $2,182 (Q3 2025) from selling extended service contracts and other protection plans via TCA.
• Recurring Revenue: The Parts and Service segment delivered $355 million in gross profit in Q2 2025, which is the most reliable, sticky revenue stream.
• Digital Integration: Clicklane is designed to be the single, seamless point of contact for buying, selling, and scheduling service, removing friction that could otherwise cause a customer to defect.

The strategy is simple: make the first sale easy with Clicklane, then lock in the high-margin service and protection revenue with a great personal experience. This two-pronged approach is the foundation of their long-term value creation.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Channels

You need to know exactly how Asbury Automotive Group, Inc. (ABG) reaches its customers, because the channels are the engine of their scale. The model is a powerful blend of high-touch physical dealerships and a high-tech, centralized e-commerce platform, all supported by a dedicated lead-management structure.

The key takeaway is that ABG is defintely executing its dual strategy, driving growth through both its enormous physical footprint and its proprietary digital platform, Clicklane. This multi-channel approach is what allows them to capture a diverse spectrum of buyers, from the traditional in-store customer to the fully online buyer.

Physical network of over 150 franchised dealerships across the US

The traditional dealership remains the foundational channel for ABG, providing the local presence and immediate service capacity that digital alone can't match. As of September 30, 2025, ABG operated 175 new vehicle dealerships across the United States. This network represents 230 franchises and a diverse portfolio of 36 domestic and foreign brands. Here's the quick math: this physical scale is a massive competitive moat, giving them a huge volume advantage in new and used vehicle sales, plus a steady, high-margin revenue stream from their service bays.

These stores are not just sales floors; they are local hubs for the entire customer lifecycle. They handle everything from test drives and final paperwork to trade-ins and post-sale service. The sheer size of this network is a key factor in their trailing twelve-month revenue, which was $17.83 billion as of September 30, 2025.

The centralized Clicklane e-commerce platform for full online transactions

Clicklane is ABG's proprietary digital retail channel, designed to offer a complete, end-to-end online car buying experience (digital retailing). This platform allows you, the customer, to complete the entire transaction-from selecting a vehicle and obtaining financing to valuing a trade-in and scheduling home delivery-without ever stepping into a dealership.

This channel is a major strategic growth driver. ABG's 2025 plan projected Clicklane would add $7 billion in revenue by 2025, integrating the platform across all acquired dealerships to standardize the customer experience. This is a critical investment because it future-proofs the business against digital-native competitors and expands their geographic reach beyond the immediate vicinity of a physical store.

The platform's capabilities include:

• Full vehicle selection and inventory search.
• Online financing and payment calculation tools.
• Digital trade-in appraisal process.
• Scheduling for vehicle delivery or in-store pickup.

Dedicated business development centers (BDCs) for lead management

The Business Development Centers (BDCs) act as a centralized, high-efficiency channel for managing all inbound and outbound customer inquiries. Their primary role is to bridge the gap between digital interest and a physical or digital sale. BDC representatives are tasked with handling all leads that come in via phone, text, email, and chat.

The BDCs are not sales closers; they are appointment setters. They qualify leads, answer preliminary questions, and schedule appointments for the sales or service departments, ensuring no lead falls through the cracks. This centralized function is crucial for maximizing the conversion rate (converting an inquiry into a dealership visit or a Clicklane transaction) and maintaining accurate customer data in Customer Relationship Management (CRM) systems.

Manufacturer websites that direct traffic to ABG's local dealer pages

A significant, yet often overlooked, channel is the network of original equipment manufacturer (OEM) websites. ABG operates franchises for 36 domestic and foreign brands. When a customer searches for a specific new vehicle on a manufacturer's site (like Toyota or Mercedes-Benz), ABG's local dealerships appear as the official, authorized retailer in that geographic area.

This channel provides a high-quality, pre-qualified lead stream. The manufacturer spends billions on brand advertising and product awareness, and ABG captures the final, high-intent customer. This is essentially free, high-value marketing. It's a powerful, indirect channel that leverages the brand equity of the world's largest automakers.

Service centers for parts, maintenance, and warranty work

The service and parts centers are a vital, non-vehicle sales channel, providing a stable, high-margin revenue stream. This channel includes routine maintenance, major repairs, parts sales, and warranty work, and is supported by 40 collision repair centers as of September 30, 2025.

In the third quarter of 2025, this channel delivered strong results, with Parts and service revenue increasing by 11% and gross profit rising by 15% year-over-year. The same-store parts and service gross profit growth was 7%, which shows the underlying health and efficiency of this channel, independent of acquisitions. This is a great indicator of customer retention and loyalty post-sale.

Here is a summary of the primary channels and their most recent quantifiable impact:

Channel	Function	2025 Fiscal Year Data (Q3 2025 or most recent)
Physical Dealerships	New/Used Vehicle Sales, F&I, Customer Experience	175 new vehicle dealerships and 230 franchises operated as of 9/30/2025.
Clicklane Platform	Full Digital Retail (E-commerce)	Projected to add $7 billion in revenue by 2025 (Strategic Target).
Service Centers	Parts, Maintenance, Collision Repair	Parts and service gross profit increased by 15% in Q3 2025. 40 collision repair centers operated as of 9/30/2025.
BDCs (Business Development Centers)	Lead Management and Appointment Setting	Centralized handling of inbound sales/service inquiries (phone, text, chat) to maximize conversion.

What this estimate hides is the ongoing capital expenditure required to keep the physical dealerships modern and the Clicklane platform cutting-edge. Still, the numbers show the service channel is a reliable anchor, and the digital channel is positioned for aggressive growth.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Customer Segments

You're looking at Asbury Automotive Group, Inc. (ABG)'s customer base, and the key takeaway is that they are not a single-market retailer; they are a diversified portfolio targeting distinct, high-value segments, with a clear and accelerating shift toward the affluent buyer and the high-margin service customer. This segmentation is crucial because it drives their profitability, especially the parts and service side of the business.

Mass-market new and used vehicle buyers seeking convenience and transparency

This group represents the core volume of the business, focusing on the transactional sale of new and used vehicles across their dealership network. While the market is competitive, ABG's scale allows them to capture significant unit sales. In the third quarter of 2025 (Q3 2025), new vehicle unit volume increased by a strong 13%, driving new vehicle revenue up by 17% year-over-year. Used vehicle retail unit volume also saw a modest increase of 1%, with revenue growing by 7% in the same period. This shows a healthy demand across the board, which is defintely a good sign for near-term revenue stability.

Service customers requiring certified maintenance and collision repair

This is the most financially resilient customer segment, the one that provides consistent, high-margin revenue regardless of the cyclical nature of vehicle sales. The Parts and Service segment is a profit powerhouse for ABG. For the second quarter of 2025 (Q2 2025), their Parts & Service gross profit hit an all-time record of $355 million.

Here's the quick math: Parts and Service revenue only accounts for about 14% of total revenue, but it generates an outsized 47% of the total gross profit for the company. Their same-store Parts & Service gross profit margin was an impressive 58.8% in Q3 2025, up 7% year-over-year. They also operate 37 collision centers, which further diversifies their service-based revenue.

Affluent buyers of luxury and high-performance vehicle brands

ABG is strategically moving to serve a more affluent customer, who typically drives higher-margin sales and is less sensitive to economic shifts. This is a very smart move. Over 70% of the company's new-vehicle revenue already comes from luxury and import brands. The acquisition of The Herb Chambers Automotive Group, completed in July 2025, is the clearest signal of this focus, adding approximately $3 billion in annual revenue and boosting the luxury segment from 29% to 35% of their total brand portfolio. As of late 2025, Asbury Automotive Group operates 230 franchises representing 36 domestic and foreign brands.

Customer Segment Focus	Key 2025 Financial Metric (Q3/TTM)	Strategic Impact
Mass-Market Vehicle Buyers (New & Used)	Q3 2025 New Vehicle Revenue up 17%	Drives overall sales volume and market share.
Service & Repair Customers	Q3 2025 Same-Store Parts & Service Gross Profit up 7%	Provides consistent, high-margin, and recession-resistant revenue.
Affluent/Luxury Buyers	Luxury segment increased from 29% to 35% of portfolio post-Chambers acquisition	Elevates average transaction price and gross profit per unit.

Customers who prefer a fully digital, at-home vehicle buying experience

This segment is served by ABG's proprietary e-commerce platform, Clicklane (a digital retail platform that allows customers to complete the entire vehicle purchase process online). This is how they meet the demand for convenience and a seamless experience. The platform is gaining traction, demonstrating its potential to capture the digitally-native buyer. In Q2 2025 alone, the Clicklane platform facilitated 9,500 transactions. They are also investing heavily in the underlying technology, notably expanding the Tekion dealer management system (DMS) across more stores, like the full rollout in the Baltimore-DC market in Q3 2025, to make that digital experience seamless.

Small to mid-sized businesses for fleet and commercial vehicle needs

While a major component of any large dealership group, this segment is primarily served through the domestic and import brands within their 175 new vehicle dealerships. This customer focuses on total cost of ownership (TCO) and requires consistent service capacity for fleet maintenance. The large-scale Parts and Service operation, with its 58.8% gross profit margin in Q3 2025, is a strong value proposition for these commercial clients, ensuring minimal downtime for their vehicles.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Cost Structure

Asbury Automotive Group's cost structure is a classic volume-driven model, dominated by the cost of acquiring vehicle inventory. Honestly, the vast majority of your expense base is simply the price of the cars you sell, so managing inventory and financing costs is defintely the core challenge. The company's strategic growth, including the Herb Chambers acquisition in 2025, means these costs are scaling up quickly, but the focus remains on maintaining a tight Selling, General, and Administrative (SG&A) ratio.

Significant costs of goods sold (COGS) for vehicle inventory procurement

The single largest cost for Asbury Automotive Group is the Cost of Goods Sold (COGS), or what the company calls Cost of Revenue, which represents the direct cost of purchasing new and used vehicle inventory. This cost is massive and variable, fluctuating with wholesale auction prices, manufacturer pricing, and sales volume. For the first nine months of 2025, the total Cost of Revenue reached approximately $14.79 billion. To put that into perspective, in the third quarter of 2025 alone, the COGS was around $3.997 billion (calculated from $4.80 billion in revenue minus $803 million in gross profit).

This immense scale means even small changes in vehicle acquisition prices or inventory holding periods can dramatically impact the bottom line. The company's strategy hinges on high inventory turnover to mitigate the risk of depreciation and reduce floor plan interest costs.

High selling, general, and administrative (SG&A) expenses, including personnel

Selling, General, and Administrative (SG&A) expenses are the primary operating cost, reflecting the high personnel and marketing needs of a dealership network. This is essentially the cost of running the stores and selling the vehicles.

• Personnel costs are the largest component of SG&A, covering sales commissions, technician wages for the growing parts and service segment, and corporate overhead.
• The company actively manages this ratio: for the third quarter of 2025, the total company SG&A as a percentage of gross profit was 64.2%.
• On a same-store basis, this efficiency metric was slightly better at 63.6% for Q3 2025, showing management's focus on cost control within its existing operations.

For the first nine months of 2025, the total SG&A expense was reported at $1.935 billion.

Capital expenditures for dealership facility upgrades and maintenance

Capital expenditures (CapEx) are a necessary fixed cost to maintain the high-end appearance and functionality of the dealership facilities, which is crucial for luxury brands. This includes mandatory manufacturer-required facility upgrades and maintenance.

Management is guiding for estimated capital expenditures for the full year 2025 to be approximately $175 million. This investment is critical for upholding brand standards across the company's network of 175 new vehicle dealerships, especially following the acquisition of The Herb Chambers Automotive Group in 2025, which added 33 dealerships.

Technology development and maintenance costs for the Clicklane platform

The company is committed to its digital retail strategy, centered on the Clicklane platform, which requires ongoing investment. These costs are a mix of capitalised development and operational expenses.

• The costs are tied to maintaining and enhancing the Clicklane platform's end-to-end digital car-buying experience.
• New technology integration is also a factor: in the third quarter of 2025, Asbury incurred $2 million in pre-tax expenses related to the implementation of the Tekion dealer management system.

This is a strategic, non-core operating cost that is expected to drive long-term efficiency gains, but it creates short-term expense pressure.

Interest expense on floor plan financing and long-term debt

As a retailer of high-value inventory, Asbury relies heavily on floor plan financing (short-term loans to purchase vehicles) and long-term debt for acquisitions like the Herb Chambers deal. Rising interest rates in the 2025 environment directly impact these costs.

The cost of financing the vehicle inventory and corporate operations is a significant, highly variable expense. Here is a look at the interest expense for the first half of 2025:

Expense Category	Time Period	Amount (in millions)
Floor Plan Interest Expense	Q1 & Q2 2025 (6 Months)	$38.8
Other Interest Expense, net (Long-Term Debt)	Q1 & Q2 2025 (6 Months)	$83.7
Total Interest Expense (Q1 & Q2 2025)	6 Months	$122.5

Here's the quick math: The total interest expense for the first six months of 2025 was $122.5 million. Following the Herb Chambers acquisition, which was financed through borrowings under the existing senior credit facility and a new real estate facility, the transaction adjusted net leverage ratio stood at 3.2x at the end of Q3 2025.

Asbury Automotive Group, Inc. (ABG) - Canvas Business Model: Revenue Streams

The core takeaway for Asbury Automotive Group, Inc. (ABG) is that while vehicle sales drive the top-line revenue-totaling $17.83 billion on a Trailing Twelve Month basis as of Q3 2025-the true profit engine is the high-margin, sticky revenue from Parts and Service and Finance and Insurance (F&I). These two segments consistently deliver over 71% of the total gross profit, which is the number you defintely need to focus on.

Here's the quick math: F&I and Parts/Service are the profit engines, generating significantly higher gross profit per vehicle than the actual car sale. That's why ABG focuses so hard on retention and service capacity. Finance: draft a 13-week cash view by Friday, specifically modeling the interest rate sensitivity on your floor plan financing.

New vehicle sales (high volume, lower margin)

This segment is the volume leader and the largest contributor to total revenue, but operates on the thinnest margins. For the third quarter of 2025, new vehicle revenue surged by 17%, reflecting strong unit volume growth of 13%. This is a critical driver for customer acquisition and feeding the higher-margin service pipeline down the road. Still, the gross profit margin on new vehicles is typically the lowest in the business, which is why the focus is on volume and moving inventory efficiently.

Used vehicle sales (moderate volume, higher margin)

Used vehicle retail sales offer a better gross profit margin percentage than new vehicles, even if the total revenue contribution is smaller. In Q3 2025, used vehicle retail revenue grew by 7%, a solid performance that outpaced the modest 1% increase in unit volume, suggesting a favorable mix or pricing environment. The strategy here is maximizing gross profit per unit (GPU) through efficient sourcing and reconditioning.

High-margin finance and insurance (F&I) product sales

F&I is a powerhouse of profitability, essentially selling high-margin, non-physical products like extended warranties, service contracts, and GAP (Guaranteed Asset Protection) insurance. This revenue stream is measured by F&I Gross Profit Per Vehicle Retailed (PVR). For the third quarter of 2025, ABG's F&I PVR was $2,182, an increase of 2% year-over-year. This is pure profit leverage on every unit sold, new or used.

• Q1 2025 F&I Gross Profit: $174.0 million
• Q3 2025 F&I PVR: $2,182
• F&I and Parts/Service combined for over 71% of Q1 2025 total gross profit.

Parts and service revenue (stable, high-margin recurring income)

This is the most stable and highest-margin revenue stream, providing a recession-resistant foundation for the entire business. It includes repair work, maintenance, and parts sales. For the third quarter of 2025, Parts and Service revenue increased by 11%, leading to a 15% rise in gross profit, demonstrating significant operating leverage. The goal is to maximize customer retention and capture more of the vehicle's lifetime service value.

In Q1 2025 alone, Parts and Service generated $342.6 million in gross profit, making it the single largest gross profit contributor to the company. That's a massive buffer against cyclical swings in vehicle sales.

Wholesale vehicle sales and other ancillary income

Wholesale sales primarily involve selling trade-in vehicles that are not kept for retail, often through auctions. This is a low-margin, high-velocity stream designed to efficiently convert non-retail inventory into cash. Other ancillary income includes revenue from the Total Care Auto, Powered by Landcar (TCA) segment, which provides F&I products and services to third-party dealers. For the nine months ended September 30, 2025, the TCA segment generated $244.7 million in revenue from external customers. This diversification adds a small, scalable revenue stream outside the traditional dealership model.

To put the profit mix in perspective, look at the Q1 2025 gross profit breakdown. This clearly shows where the economic value is generated, despite the revenue mix being dominated by vehicle sales.

Revenue Stream	Q1 2025 Gross Profit (in millions)	% of Total Q1 2025 Gross Profit
Parts and Service	$342.6	47.3%
Finance and Insurance (F&I), net	$174.0	24.0%
New Vehicle Sales	$143.1	19.8%
Used Vehicle Retail Sales	$56.2	7.8%
Used Vehicle Wholesale Sales	$8.4	1.2%
Total Gross Profit	$724.2	100.0%