Now is the Time to Further Increase Dealers' F&I Potential - AutoSuccessOnline Now Is the Time to Further Increase Dealers’ F&I Potential
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F & I Solutions

Now is the Time to Further Increase Dealers’ F&I Potential

The sale of used vehicles means more consumers are seeking protection plans to keep older-models in top shape after purchase.

Rick Kurtz is the senior vice president and chief distribution officer for Protective Asset Protection

Despite the ongoing inventory and parts supply challenges of the automotive industry, F&I profit potential has grown in recent years and since the pandemic began.

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According to F&I data from StoneEagleMetrics1, the average F&I gross profit per financed vehicle increased 24% year over year to $2,499 in December. The firm’s insight said this growth was greatly influenced by products, which contributed about 60% of the profit in December 2019, 2020 and 2021.

Whether it’s the need to protect higher mileage vehicles now in demand by consumers, better F&I education of products online and earlier in the shopping process, or more time being spent by F&I departments, there are many reasons why F&I continues to grow.

Expanded Products and Resources

The expansion of F&I solutions, protection products and participation programs has been a key part of this growth, and dealers have taken note. This expansion of opportunity and profit potential has room to continue this trend, but it will only happen through the acceleration of F&I programs.


Many dealers who were operating five to 10 dealerships a few years ago now operate 20 rooftops. They need more resources, human capital and an expansion of programs and offerings to continue their growth.

For many dealers, F&I programs today include extended service contracts, guaranteed asset protection and ancillary products to protect consumers’ investments in automobiles, recreational vehicles, watercraft and powersports vehicles. In addition, dealer participation programs, training and technology solutions are also vitally important to dealers’ success. To help dealers continue to succeed, having a complete and robust set of solutions as well as a network of industry professionals with the expertise to help navigate the changing environment is a must.

Continued Focus on Used and Higher Mileage

The right focus on used and higher-mileage vehicles is also a key component for dealership growth, with F&I products that can be fully supported through a network of general agents. 

With fewer new cars and trucks to choose from resulting from ongoing inventory challenges, more consumers have been pursuing deals on used vehicles. The sale of used cars and trucks means more consumers are seeking vehicle protection plans to keep older-model and even gently used vehicles in top shape after purchase — further driving up the need for expanded resources and profitability for F&I products. Ultimately, the lowered sales volumes since the pandemic began means dealers are relying even more on F&I products to boost profit levels.


The average used car in America sold for $28,365 in April — an increase of more than $1,100 from March levels, according to KBB 2. The continued rise in prices for used vehicles means consumers are relying on quality protection plans and F&I products even more today.

F&I Opportunities for Dealers Throughout 2022

While experts believe used vehicle prices will begin to trickle down as new-vehicle inventory climbs into 2023, the opportunity for F&I product sales will remain healthy. With this used inventory still in high demand entering 2022, F&I product trends that are expected to be in focus in the coming year include pre-owned vehicle service contract programs as well as GAP, ancillary and certified programs. 


Dealers tend to gravitate toward certified programs, such as limited warranties, because they offer numerous options relative to eligibility, coverage and deductible options. Additionally, many certified programs offer dealers investment opportunities in the form of dealer participation programs.  

Ancillary programs are in high demand because they protect key elements of the vehicle and can be added individually or as part of a combination program to complement the coverage a vehicle service contract program provides.  

Despite continued challenges in the industry, a continued focus on F&I product acceleration and program offerings, combined with more expert resources available, will help fuel further growth throughout 2022 and beyond for dealers.  

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