Cars, trucks, and SUVs — new, used, and pre-owned. Independent product access for franchise and independent dealers alike.
Lender caps and regulatory pressure squeeze every deal. F&I product mix is where the margin lives.
Pre-owned units carry higher claim risk. The right product mix and the right provider relationship matter more than the badge.
Long auto loan terms and rapid depreciation create persistent negative equity. GAP up to 150% MSRP helps offset that, subject to contract limits.
AFIP-aligned menu selling and compliance support keep your team confident and your dealership protected.
The auto vertical operates under the most regulatory pressure in F&I. Rate caps from lenders, AFIP compliance requirements on menu presentation, state specific disclosure rules, and the ongoing FTC scrutiny of dealer F&I practices create an operational reality that ag, marine, and powersports dealers do not face.
Within that pressure, the auto dealer's F&I margin still drives the deal economics. Front end gross is compressed on new units. F&I PVR is where dealership profitability lives. The dealer with a disciplined menu, AFIP aligned training, and an honest product mix outperforms the dealer with a flashy menu and aggressive presentation by every measurable metric. Close rate, attach rate, retention through the cancellation window, customer satisfaction scores.
Auto F&I starts with menu discipline. A standardized menu presentation per deal, AFIP aligned scripting, signed acknowledgment of optional product status, and clean disclosure of contract terms is the legal floor. Everything above that floor is technique. How you present, in what order, with what framing.
The product mix that works in auto. Extended service contracts at multiple tier levels matched to vehicle age and mileage. GAP on financed deals over 60 months. Tire and wheel on most units (auto wheels are vulnerable to pothole damage). Appearance protection on units that will see weather exposure. Prepaid maintenance for new vehicle customers who value payment certainty.
Used inventory needs special attention. Pre owned units carry higher claim risk and tier the ESC pricing differently. Verify that the contract you are selling is age and mileage eligible at the point of sale. Selling an ESC on an ineligible used unit creates a contract dispute later.
Compliance training is non negotiable. AFIP certification for F&I managers, ongoing training on state disclosure updates, and documented menu presentation review processes protect the dealership from regulatory exposure that can shut down F&I operations.
Composite scenarios drawn from dealer claim experience. Dollar figures are representative for the vertical.
ESC purchased at sale on a vehicle at 78,000 miles. Transmission rebuild covered at $3,400. Customer paid the deductible.
Insurance settled at $24,000. Loan balance was $32,000. GAP covered the $8,000 deficiency.
Tire and wheel covered $1,200 in wheel replacement plus tire mount and balance.
Auto dealers face F&I margin pressure from every direction. Our independent product access, AFIP-aligned training, and DMS integration give you flexibility, choice, and the room to build a profitable F&I program your way.
The product mix that works for auto dealers, with the reasoning behind each call.
0 to 36,000 miles. 36,001 to 75,000 miles. 75,001 to 125,000 miles. Tier matches actual claim risk.
AFIP compliant disclosure required. The depreciation curve opens a gap on longer terms.
Skip on commercial fleet sales where the customer self insures. Otherwise high attach rate.
Coastal, salt belt, mountain states. Skip in inland mild climates where the product does not match the use case.
Payment certainty product. Pairs naturally with the financed deal.
Vertical-specific questions dealers and customers ask before signing.
A manufacturer extended warranty is sold by the OEM and honored at any franchise dealer of the same brand. An ESC is sold by an independent provider and honored at any qualified repair shop, often with broader coverage and more flexible repair location. Either can work. The dealer should be clear on which is being sold.
The customer's insurance carrier settles for the ACV (actual cash value) of the vehicle. If the loan balance exceeds ACV, GAP pays the gap, subject to contract terms and the deductible. Some contracts also have a 'deductible coverage' feature that reimburses the customer's insurance deductible.
Generally yes, but the ESC tiers differ and some contracts cap eligibility at specific age or mileage thresholds. GAP is available on most used financed deals. Tire and wheel is universally available.
AFIP certified F&I managers, standardized menu presentation, written acknowledgment of optional product status, accurate disclosure of contract terms and pricing, and documented training on state specific disclosure rules. The Association of Finance and Insurance Professionals publishes the certification curriculum.
The CARS Rule (Combating Auto Retail Scams) requires clear disclosure of optional add on products and the customer's right to decline. F&I managers must document customer acknowledgment of every product offered. Implementation specifics continue to evolve through regulatory comment periods.
Let us build a custom F&I package designed specifically for your auto dealership.
Start the Conversation