F&I is a critical source of revenue and helps dealers build long-term customer relations. But it has come under more and more media and legal

scrutiny of late. Recently, class-action lawsuits have been launched against automaker captives and dealers over alleged deceptive and unfair trading practices, as well as racial discrimination, according to the National Automobile Dealers Association's AutoExec magazine.

"There's probably more litigation in this area of the dealership than any other," said NADA Chairman H. Carter Myers III. And a flurry of media stories has caught the attention of state attorneys general, who are eyeing further

regulation.

So where does all this leave dealers? For one thing, "the dealer has to be more involved in everything, more hands-on," said Alice Clayton, co-owner, Dilfer Chrysler/Dodge/Jeep, Porterville, Calif. And for good reason: With F&I and service contracts being 22 percent of new- and used-car gross last year, according to NADA, this profit center is key.

Also, one study found that training in proper-disclosure F&I raises not only customer satisfaction but gross and penetration, according to NADA.