F&I Profit and Sales From Internet Leads Up in 2004

WESTLAKE VILLAGE, Calif. -- A recent study found that dealership F&I profit from new vehicle sales increased 5.9 percent this year from 2003. For used vehicles, F&I profit increased 3.7 percent over last year.

Despite strong incentive programs, F&I income has successfully increased year-over-year because of strong service contract penetration, according to the study.

The study also found that 8 percent of all sales were generated from Internet leads -- up from 7.1 percent in 2003. To handle Internet inquiries, 94 percent of dealers have an Internet sales employee and 29 percent have an Internet finance employee.

The survey, conducted by J.D. Power and Associates, queried over 4,000 dealer principals.