Dealership gross profits see bigger impact from F&I, from Automotive News.
The average dealership gained more from F&I last year, even though retailers’ overall sales penetration for products such as extended service contracts and GAP dropped a fraction of a percentage point.
On average, F&I accounted for 39.6 percent of gross profit for new- and used-vehicle departments combined in 2014, up from 38.8 percent in 2013, according to the 2014 NADA Data released by the National Automobile Dealers Association last week.
That number has been increasing since a recent low of 25.7 percent in 2009, when the downturn forced customers to cut back on spending, cash purchases ticked higher, and credit was harder to get, especially for customers with subprime credit.
The National Automobile Dealers Association reported that finance income — defined as dealer reserve, flat fees and other finance-related income — made up 23.3 percent of gross profits for new- and used-vehicle departments combined in 2014, a slight increase from 22.8 percent in 2013.