A Glossary of F&I Products at Dealerships

The Finance and Insurance department — better known as the F&I office — is where customers finalize financing, sign auto loan paperwork, and are walked through the F&I menu of supplemental products before the buyer leaves the dealership with their new vehicle. It can be both a major source of revenue for car dealers and an important stop for shoppers seeking a little extra coverage for their vehicles.

These menu items, like car insurance or extended warranties, can often be bundled into the vehicle’s monthly payments, making them attractive but also potentially financially burdensome to car buyers. A dealership’s F&I Manager needs to carefully balance the customer’s budget with their needs. CDK's F&I at the Dealership study notes that nearly half of customers will add on a product from the F&I menu if they’re only given a handful of options, but their interest declines as more offers are presented to them.

Here’s a look at common F&I products that are typically sold to customers buying new and used vehicles. Generally, many of these products are negotiable.

Car Insurance: Many dealers now offer access to vehicle insurance, making the F&I desk a one-stop shop. Since insurance policy sales are highly regulated, dealers usually work with a preferred insurance broker.

Extended Warranties: One of the most popular items is an extended vehicle warranty. These can be backed by a vehicle manufacturer or a third party, and many dealers will sell both types of warranties. Extended warranties can be nearly as comprehensive as what the automaker originally offered on the vehicle when it was new, or these can cover specific component categories like the vehicle’s powertrain.

GAP Insurance: In the event of a total vehicle loss, insurers typically pay out the car’s current value. This may be less than the owner or lessee owes on it. Guaranteed Asset Protection insurance covers the difference between what a vehicle is worth and what’s owed on it.

Key Replacement Warranty: New car keys can cost hundreds of dollars to replace and sometimes just as much to program. These warranties may be appealing to drivers who share a car with many family members or who are simply prone to losing their keys.

Lifetime Warranties: These are like extended warranties, except they typically cover the vehicle for as long as the customer owns it. They’re usually not transferable.

Paintless Dent Repair: Some dealers offer coverage that allows drivers to have all minor dings and dents fixed for free or a nominal fee.

Prepaid Maintenance and Service Plans or Contracts: Like warranties, these prepaid programs can go by a variety of names and can cover a range of maintenance needs. At their most basic, these plans may simply be a discounted way for customers to pay ahead for oil changes and tire rotations. More comprehensive programs can include the dealership’s full line of recommended services at various intervals.

Paint or Upholstery Protection: These protections usually involve the application of a coating to the vehicle’s seats, carpets or paintwork. In some markets — usually those in places that get a lot of snow — dealers might also offer an underseal designed to ward off the effects of road salt.

Satellite Radio: While many new and certified pre-owned (CPO) cars include a SiriusXM trial plan, some F&I departments will offer long-term subscriptions.

Theft Protection: This all-encompassing term includes ways dealers can help reduce the risk of vehicle theft or improve the odds of recovery after such an incident. Popular anti-theft products range from simple Vehicle Identification Number (VIN) etching on window glass to trackers that plug into the car’s onboard diagnostic port (OBD) to hardwired systems that are difficult for an average thief to remove. Many of these are subscription programs.

Tire and Road Hazard Warranties: Similar to the products commonly offered by tire installers, these programs help drivers defray the costs associated with individual tire replacements and are often prorated.

Windshield Protection Coverage: These insurance plans help reduce the cost of windshield repair or replacement and can be particularly valuable to drivers who spend a lot of time on dirt roads.