To increase F&I profit margins, dealerships should be sure F&I products match their inventory and customer demographic, suggests John Stephens of EFG Cos. Then, focus on penetration rates. "By having a customer-first mindset, F&I departments tend to have more consistent product sales at low to medium markups," he said. "They also tend to have lower chargebacks due to refinance or product cancellations."
Sell F&I products that correspond with your business
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