Dealerships have opportunities to augment their F&I sales with data from the Protective F&I Report & Industry Update 2024.
The report, with data collected by Merit Mile, surveyed 450 automotive, RV, marine and powersports dealerships nationwide. Unlike recent reports, the survey data collected combined findings from all dealerships without separating automotive from the specialty markets.
The study documented the growing importance of F&I offerings online.
Of the 450 respondents, 20% said three-quarters or more of their customers bought online F&I products in the past 12 months. Nearly three-quarters (70%) of dealers saw a moderate to significant increase in online F&I sales.
“This shift toward digital F&I sales,” the report said, “represents both a challenge and an opportunity for dealers to adapt their strategies and capitalize on changing consumer preferences.”
More than 70% of dealers reported an increase in F&I sales in 2024 compared with 2023.
The top F&I products sold were vehicle service contracts (20%), limited/certified limited warranty (17%), GAP (17%) and pre-paid maintenance products (17%).
The report recorded that consumers are most interested in F&I products that protect electrical components (21%), major mechanical components (16%) and technology features (16%).
Among the biggest challenges to F&I sales the study reported were selling F&I with higher-priced vehicles, longer loan terms offered on sales, and a shift toward more used vehicle sales.
The report said, “These factors can make it more difficult for customers to afford additional F&I products, requiring dealers to be more creative in their sales approach.”
Factors influencing consumers’ decisions to decline F&I products include lack of F&I awareness (28%), financial security (21%) and high vehicle prices (21%). According to Protective, because so many consumers claim to be unaware of F&I products, dealers should improve their communication and education strategies.
The study identified factors to help dealerships sell more F&I products. Of the survey respondents; 21% of dealers said more diverse product options would help, 21% said F&I products geared toward used vehicles would boost interest. Around 19% said that F&I products assisting with vehicle affordability would increase interest.
To learn more about Protective’s report, click here.
