MCCLEAN, Va. — F&I income at new-car dealerships rose slightly in 2013, according to National Automobile Dealers Association’s annual NADA Data report.
Combined sales from F&I, service contracts and other products accounted for 38.8% of gross profit in the new- and used-vehicle departments in 2013, up from 36.9% the previous year.
F&I sales accounted for 22.8% of gross profit in the new- and used-vehicle department last year, up from 21.3% in 2012. Sales from service contracts and other products accounted for 16% of gross profit in the new- and used-vehicle departments last year, up 0.4 percentage points.
Service contract penetration rates for new vehicles declined slightly by 0.2 percentage points last year, while penetration rates for used vehicles decline by 1.5 percentage points.