F&I product add positions Cox for growth

F&I product sales could be the key to dealership profit, and by offering F&I products to its dealers, Cox Automotive is setting itself up for growth.

Cox Automotive announced last week that it acquired a minority interest in F&I product provider SilverRock Holdings. Dealers who work with Cox Automotive’s NextGear Capital and GO Financial will be able to offer customers F&I products such as extended service contracts, GAP, vehicle-theft protection and GPS tracking products through SilverRock.

Dealers rely on the F&I department for much of its profit. If new-vehicle sales plateau or fall and lenders continue to cap retail margins on auto loans, the F&I department likely will become even more vital to dealerships’ profit.

As the F&I world changes and its profit becomes even more essential to the dealership as a whole, Cox made a pragmatic decision to add F&I products to its lineup.

You can reach Hannah Lutz at hlutz@crain.com -- Follow Hannah on Twitter: @hm_lutz

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