Roughly a quarter of U.S. auto dealers report their sales of F&I products are up between 5% and 10% so far in 2021 compared with the previous year, according to Protective Asset Protection’s second F&I Trends Report.
The report, from the provider of F&I programs, services and dealer owned warranty company programs, also showed another 23% of dealers surveyed said the sales of their F&I products are up more than 10% during that same time. This is most likely the result of a bounce-back in auto sales in 2021 following the drop-in activity in 2020.
The report is designed to specifically address the current landscape of F&I products in the marketplace, and to provide an overall view of how these products are performing for dealers across the U.S. The report also addresses specific market challenges and opportunities, feedback from dealers across the U.S., F&I product growth opportunities as well as the outlook for various dealer participation program structures.
Data collected for the report also revealed that most F&I products have remained somewhat stable in terms of the breakdown of what was sold pre-pandemic versus today. However, the largest jump since the pandemic began has been identified in theft-deterrent systems. Twenty-one percent of dealers reported selling these systems prior to the pandemic, and today this number has jumped to 31% of dealers. Many cars, even after purchase, are remaining parked at home as more people work from home and seek extra security for their vehicle.
The continued increase of electric vehicles (EV) from car shoppers has also had an impact on dealers selling F&I products. According to data collected for the report, more than a third of dealers (36%) believe EV/plugin sales represent some of the largest opportunities in selling F&I products today versus pre-pandemic.