How F&I Provides Dealers Steady Revenue in Volatile Times

Car sales got off to a strong start in 2025 but tapered as the end of the year approaches. New vehicle prices remain stubbornly high, and ongoing concerns around interest rates and low consumer sentiment continue to weigh on dealer confidence. However, dealers can lean on one reliable source of revenue in these unsteady times: the F&I office. 

F&I as a Profit Center

Even with recent headwinds — and perhaps because of them — the F&I office remains one of a dealership's most profitable areas as buyers look to protect large investments. While overall profit per vehicles has declined, F&I gross-profit-per-vehicle is still hovering near record highs and is up versus 2024.

Looking ahead, F&I's role as a profit center may become even more critical. Tariffs could push new car prices even higher, likely lowering demand and reducing sales. At the same time, rising used car prices fuel higher acquisition costs, further squeezing profit margins. Here’s how F&I can help dealers weather these uncertain times. 

Buyers Trust the F&I Office

Believe it or not, shoppers say they trust the F&I Manager more than any other dealership employee. According to a CDK’s F&I at the Dealership White Paper, nearly two-thirds (65%) of respondents say they trust the F&I Manager more than the Sales Manager, who came in second.

Equally encouraging, most buyers report positive experiences with the dealership’s F&I Manager. CDK data shows that over 80% of customers found the F&I Manager to be honest, patient and a good communicator. Furthermore, 77% said they viewed the F&I Manager as a seasoned expert who offered the best recommendations based on their specific needs.

Leverage That Trust

Dealers can use that consumer trust to present F&I products that help the customer and generate profit for the store. 

Since 2021, the consumer price index for vehicle maintenance and repairs has risen sharply, with parts costs driving the largest portion of auto-related inflation. The F&I office can help buyers stave off costly maintenance and vehicle repairs by offering prepaid Service contracts that lock in pricing and extended warranties that cover expensive vehicle components. Many of these products roll into the buyer's monthly car payment, shielding them from having to come up with a large lump sum.

Moreover, CDK data shows buyers actively seek these types of F&I products. Extended repairs, scheduled maintenance plans, and powertrain warranties rank among the most popular products customers purchase from the F&I Manager. 

Don’t Overdo It

While customers welcome recommendations from the F&I Manager, there's a limit to how many products buyers are willing to purchase. CDK data shows that the sweet spot is one to two: Nearly half (49%) of car shoppers made purchases in that range. The take rate drops sharply beyond that: Only 10% of buyers opted for three to four items, and just 4% bought five or more. Simply put, your F&I office will perform better offering a few impactful products rather than a wide-ranging smorgasbord of items.