NADA: F&I Income, Penetration Rates Remain Strong
Despite escalating new-car prices and plateauing sales, NADA analysts report little change to American dealers’ per-copy average, penetration rates, and F&I income as a percentage of gross profit in 2018.

Service-contract penetration rates were down slightly for new-vehicle sales and up slightly for pre-owned units in NADA Data’s 2018 report.
Photo by Taras Makarenko via Pexels
TYSONS, Va. — The National Automobile Dealers Association’s latest NADA Data report finds U.S. dealers continue to rely on their finance departments to drive dealership revenue and profitability. Profit per retailed unit grew by only $17 to $2,354 for used vehicles and declined by $15 to $1,944 for new units in 2018, analysts said, but F&I aftermarket income represented 25.5% of the gross profit on all sales, up from 24.9% in 2017.
F&I income as a percentage of new-vehicle sales remained flat at 2.9% but ticked up from 3.7% to 3.8% for pre-owned sales. Penetration rates for any F&I product were down slightly from 90.3% to 89.6% for new and flat at 73.2% for used. Service contracts penetrated at a rate of 45.7% for new (down from 46.9% in 2017) and 47.6% for used (up from 47.4%).
In March, FICO reported that U.S. and Canadian dealers lead the globe in dealer-arranged financing, accounting for 63% and 66% of all new auto loans, respectively.
Earlier this month, NADA released “Voluntary Protection Products: A Model Dealership Policy,” a new, optional policy-building and enforcement plan available for free to association members. Paul Metrey, NADA’s vice president of regulatory affairs and chief regulatory counsel, will offer an insider’s take on the policy at the upcoming Agent Summit.
To learn more about NADA’s VPP guidance, click here.
More F&I

Sell Value, Build Trust
In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.
Read More →
F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Double the Change, Double the Chance
When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Leading with Purpose
In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.
Read More →
Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →