Holiday Special: Subscribe for $1.52/week.
JIM HENRY

New-car sales drive F&I. Period

Jim Henry is a special correspondent for Automotive News
Excuse me for stating the obvious, but most customers buy F&I products such as extended-service contracts and fabric-and-paint protection when they buy a car. Period.

You could get the impression that’s changing as big retail groups such as Asbury Automotive push to sell extended-service contracts to service customers as a way of becoming less dependent on new-car sales.

But what works for the big guys doesn’t work for everyone. A couple of smaller dealers told me their service customers just aren’t interested in buying an extended-service contract. “For the F&I manager to have an opportunity to make a sale, they’ve got to have the (new-car) traffic,” says William Fox, a dealer in Auburn, N.Y.

Fox says that in December, F&I sales were generated the old-fashioned way: through new-car sales spurred by 0 percent loans.

“In upstate New York,” he says, “it’s all about the monthly payment.”

25

Shares

ATTENTION COMMENTERS: Over the last few months, Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Newsletters