Despite challenges related to the supply chain issue, auto dealerships had a highly profitable 2021. For the short term, dealers have figured out a profit model that works: high margins on new and used vehicles; increased F&I per vehicle retail profit; and higher F&I product penetration rates.
In fact, more than half of a dealership's combined sales and F&I profit is now generated by finance and insurance sales, according to data from APCO Holdings. What is driving the F&I department to new levels of success?
Three trends contributed to a banner year and will continue to drive higher F&I profits in 2022.