U.S. dealers enjoyed a modest gain in F&I income last year, but gross profits fell, according to the latest full-year Presidio-NCM Average Dealership Performance Benchmark. The data is aggregated from 3,900 of the nation’s 18,000-plus franchised dealerships.

The report, a joint venture by The Presidio Group and NCM Associates, found F&I income per retail unit improved by 0.3% to $1,581, adding $4 per unit from 2023. But gross profit per new vehicle retailed fell 33% to $2,247 and gross profit per used vehicle retailed fell 15.9% to $1,399.

Average net pretax profit fell 24.4% year-over-year, analysts say, but a strong fourth quarter offered reason for hope.

“The latest evidence, both from the Presidio-NCM data and Presidio’s year-end dealer survey, indicates that the auto retail sector is at the tail end of the Great Normalization,” writes George Karolis, president of The Presidio Group, in a release. “Dealers are more optimistic about their future profitability heading into 2025, and we expect their new normal will include profitability that stabilizes at levels well above pre-pandemic benchmarks, at least for certain brands.”

Read the full report at The Presidio Group