Finance-and-insurance product sales are helping shore up auto dealership revenues as consumer affordability and trade tariff challenges threaten front-end profits.

Though average front-end dealer gross profit in June totaled $695 per vehicle, down 26% since January and 40% from the 2024 peak, F&I results headed in the opposite direction, industry provider StoneEagle reported.

The front-end picture, though faded, was still up sharply from prepandemic levels, the company pointed out – by 72%.

Meanwhile, dealers’ average F&I profit per vehicle rose by about 5% quarter-over-quarter and 8% year-over-year to $1,924. Products per deal inched up from 1.54 in the first quarter to 1.57 – the average a year earlier was 1.52.

Average monthly F&I revenue also increased, up 8% both quarter-over-quarter and year-over-year to $220,640, StoneEagle calculated.

Consequently, gross profit per vehicle in June averaged $2,625, up 10% year-to-date and eclipsing prepandemic levels by 59%.

Though F&I revenue has receded somewhat from a robust March, when many consumers descended on dealers to beat anticipated vehicle price inflation resulting from U.S. trade tariffs, F&I remains a humming profit engine for dealers, StoneEagle said.

“It’s a testament to the resilience of F&I and its ability to steady the business when other parts of the dealership come under pressure,” said company CEO Cindy Allen.

Service contracts increased their share of F&I sales by a percentage point year-over-year to 45% penetration, according to the report, followed by the same jump for gap coverage to 38% and paint-and-fabric protection to 20%. Prepaid maintenance was flat at 16%, and tire-and-wheel plans rose a point to 11%.

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