Economic recovery and increased new-vehicle sales last year helped dealerships make more money in their finance and insurance business.
That's according to "NADA Data 2012," the National Automobile Dealers Association's latest state-of-the-industry report on dealership financial trends, released Monday.
The ability to get more customers financed boosted profits from financing, insurance and service contracts, the report said.
A marked improvement in the number of service contracts, F&I products and other products sold contributed to a boost in the average dealership's aftermarket income to 34 percent of new- and used-vehicle department gross profit, up from 32 percent in 2010. The F&I penetration rate for new cars rose to 77 percent from 75 percent.
The report said: "A greater emphasis on customer understanding and satisfaction in F&I yielded better business performance in 2011."