F&I Faces Headwinds in Year-End Report
Protective Asset Protection’s annual State of the F&I Industry report finds fewer dealers improved sales in 2025 than they did in 2024, raising concerns that affordability issues are making customers question the value of F&I products.
“Our 2025 report underscores a new phase for the automotive industry where market headwinds are beginning to take their toll,” writes Senior Vice President and Chief Distribution Officer Rick Kurtz in a release. “While F&I sales growth remains resilient for most, the rapid expansion we saw post-pandemic has given way to a more nuanced reality.”
More than one in five dealers (21%) say “perceived lack of value” — along with a persistent “lack of awareness” issue — is to blame, up from 10% a year ago.
Only 11% of dealers say F&I sales improved by more than 10% over the course of the year, down from 31% in 2024, while 51% say sales improved by 5% to 10%, up from 40% a year ago. The number of dealers reporting “almost all” customers purchased F&I products online fell from 10% to 3% while 61% saw “some increase” in online F&I sales, down from 70% in 2024.
“Dealers are no longer just overcoming price objections; they are tasked with a fundamental re-education of consumers to demonstrate the vital value of F&I protection in a high-cost environment,” Kurtz adds.
