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."
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