NADA Report: F&I Income Up 15 Percent Over 2010
Aftermarket income rose in 2010 with a 15 percent increase in F&I dollars and a 7 percent increase in service contract dollars from 2009, according to the National Automobile Dealers Association's 2011 NADA Data report.
With gross margin on the sale and new vehicles still hovering below 5 percent last year, dealers continued to look to the F&I office to make up for lost profits, according to the National Automobile Dealers Association's 2011 NADA Data report.
Aftermarket income rose in 2010, with a 15 percent lift in F&I dollars and a 7 percent increase in service contract dollars from 2009. Penetration rates on service contracts also picked up last year after rates dropped to a four-year low.
"The ability to obtain finance for customers improved, too," the report stated. "A renewed focus on F&I, resulting in higher finance penetration rates for both new and used units, and a greater emphasis on customer understanding and satisfaction in F&I yielded better performance."
More Auto Finance
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →