The Industry's Leading Source For F&I, Sales And Technology

Article

Tracking F&I Performance

The magazine’s reader survey reveals that average profit per new vehicle retailed still hovers around $800, and that F&I managers are averaging approximately two products per deal.

January 2012, F&I and Showroom - Feature

by Gregory Arroyo - Also by this author

In an informal study, the magazine sought to benchmark F&I performance last year, and asked readers in October to provide their performance data for the first three quarters of 2011. Results showed that F&I managers performed slightly better than the year-ago period.

The average interest rate during the reporting period stood at 4.84 percent (median was 4.90 percent). Readers also listed Chase, Ally, Wells Fargo, Fifth Third Bank, Capital One, Bank of America, US Bank and TD Auto Finance as their top finance sources.

As for F&I tools used, 89.2 percent of respondents said they use a menu, while 48.6 percent said they also used electronic rating capabilities. As for electronic contracting of F&I products, 36.2 percent said they e-contract, while 35.2 percent said they’ve never used electronic contracting and rating tools.

As for acceptance rates, GAP, prepaid maintenance and service contracts made slight gains from the year-ago period, with respondents averaging about 2.09 products per deal (median was 2 products per deal). Theft-deterrent products and tire-and-wheel protection also penetrated well for respondents, with most other products recording acceptance rates below 20 percent.

This snapshot of F&I performance shows that while auto finance continued to loosen up, there were some restrictions. But it appears finance sources are more welcoming of F&I products.

(Click charts for larger image)

1. What Is Your Average Profit Per Retail Unit?

The average profit per new vehicle sold was $804.82, compared to $883.05 for used. The median average profit per vehicle retailed for new was $875.50 vs. $1,000 for used.

2. What Is Your GAP Penetration Rate?

The average acceptance rate for GAP among respondents was 34.9 percent for the first three quarters of last year vs. 32 percent for the first three quarters of 2010.

3. What Is Your Vehicle Service Contract Penetration Rate?

The average acceptance rate for service contracts increased from 35 percent for the first three quarters of 2010 to 46 percent for the first three quarters of last year.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  

Blog

So Here's the Deal

Ronald J. Reahard
Selling Warranty Compliance Plans

By Ronald J. Reahard
Do-it-yourself customers will tell you they prefer to save a few bucks by performing their own maintenance. F&I trainer has the perfect response for this common objection.

Handling the ‘Last Car’ Objection

By Ronald J. Reahard
Older clients who say they are buying their last car need to be protected just as much as a first-time buyer. The magazine’s resident F&I pro explains.

Sold But Not Closed

By Ronald J. Reahard

(Video) Measuring Up

By Ronald J. Reahard

Done Deal

Gregory Arroyo
Still a Work in Progress

By Gregory Arroyo
The editor explains why he put another digital retailing startup on the cover and looks at two studies that point to online car buying and financing still being a work in progress.

It Is Unwise to Lower Your Defenses

By Gregory Arroyo
The editor wonders how regulators, including two new mini-CFPBs in Pennsylvania and Maryland, view a consumer advocacy group’s highly critical report on how dealers price F&I protections.

What's Really Behind the Subprime Pullback?

By Gregory Arroyo

What’s Your Take?

By Gregory Arroyo

Mad Marv

Marv Eleazer
Love It or Leave It

By Marv Eleazer
His Madness is reminded that excelling at F&I requires true passion for the craft. He offers a few suggestions for staying focused and mentally sharp.

G.O.Y.A.

By Marv Eleazer
His Madness wants more F&I managers to improve turnover rates by taking an active role in the sales process.

The Little Things

By Marv Eleazer

Industry Summit: It’s Worth the Investment

By Marv Eleazer

On the Point

Jim Ziegler
Sharpen Your Survival Skills

By Jim Ziegler
‘Da Man’ has a plan you can use to survive the collapse of the car business and remain profitable through the dealer apocalypse.

Sales Rock Stars Still Exist

By Jim Ziegler
Da Man says $40,000-a-month sales rock stars still exist. He says you’ll find them on YouTube and Facebook Live.

The New Stooges

By Jim Ziegler

Is Your Quick Lube Driving Away Business?

By Jim Ziegler