CHESTERFIELD, Mo. – Protective Asset Protection, a leading provider of F&I programs, services and dealer owned warranty company programs, announced today the release of its second F&I Trends Report, an in-depth look at the trends and insights shaping F&I products; how auto dealerships are using F&I products in 2021; and the outlook of F&I products used by dealerships for the second half of the year. Click here to download the F&I Trends report.
The report is designed to specifically address the current landscape of F&I products in the marketplace, and to provide an overall view of how these products are performing for dealers across the U.S. The report also addresses specific market challenges and opportunities, feedback from dealers across the U.S., F&I product growth opportunities as well as the outlook for various dealer participation program structures.
In addition to specific F&I product trends, the report also addresses several other key issues impacting dealerships, including the pandemic of 2020 and how it has so far impacted dealers selling F&I; new areas of focus in spotlighting F&I sales opportunities to a new generation of car shoppers; and F&I product trends focused specifically on used vehicles, an area of focus in 2021 due to supply challenges of new vehicles.
Pace of Sales for F&I Products
According to data collected for the report, roughly a quarter of auto dealers across the U.S. report their sales of F&I products are up between 5% - 10% so far in 2021 compared with the previous year. Another 23% say the sales of their F&I products are up more than 10% during that same time. This is most likely the result of a bounce-back in auto sales in 2021 following the drop in activity in 2020.
Which F&I Products are Being Sold
Data collected for the report also revealed that most F&I products have remained somewhat stable in terms of the breakdown of what was sold pre-pandemic versus today. However, the largest jump since the pandemic began has been identified in theft-deterrent systems. Twenty-one percent of dealers reported selling these systems prior to the pandemic, and today this number has jumped to 31% of dealers. Many cars, even after purchase, are remaining parked at home as more people work from home today and seek extra security for their vehicle.
EV Vehicle Impact on F&I Sales
The continued increase of electric vehicles (EV) from car shoppers has also had an impact on dealers selling F&I products. According to data collected for the report, more than a third of dealers (36%) believe EV/plugin sales represent some of the largest opportunities in selling F&I products today versus pre-pandemic.
“With the automotive industry, and the broader American economy, continuing to evolve following the sharp drop-off in activity during 2020, this year has been an exercise in agility, fresh thinking and best practices,” said Rick Kurtz, Senior Vice President – Distribution, Protective Asset Protection. “Our second F&I report will help dealers as they strategize how best to position F&I products in front of customers and new ways they look to shop for a vehicle, as well as a new breed of customers with more spending power today.”
Click here to download the F&I Trends report.