Here’s a positive trend happening in the finance office at one in five dealerships, according to Protective Asset Protection.

The provider of F&I programs and services said at least 75% of the car buyers at that store purchased F&I products online in the last 12 months.

And don’t think those other four stores are struggling mightily in the F&I department. In fact, Protective Asset Protection highlighted in the report that nearly 70% of dealers have seen a moderate to significant increase in F&I sales from online offerings.

Those are the top findings from Protective Asset Protection’s 2024 F&I Annual Update Report, which offers valuable insights into the current state of the automotive industry, focusing on F&I product trends and how dealers are maximizing F&I product options to continually address consumer affordability challenges.

“Our 2024 F&I Annual Update Report underscores the resilience and adaptability of the automotive industry in the face of ongoing challenges,” said Rick Kurtz, senior vice president and chief distribution officer for Protective Asset Protection.

“Dealers are navigating a complex landscape of fluctuating vehicle prices, shifting consumer preferences, and economic uncertainties,” Kurtz continued in a news release. “However, we’re seeing encouraging trends in F&I product sales, particularly in the digital space. The growth in online F&I offerings presents a significant opportunity for dealers to enhance their profitability and customer experience.”

Despite challenges such as increased vehicle transaction prices and longer contract terms, the report indicated more than 70% of dealers generated an increase in F&I product sales in 2024 compared to 2023.

The report also showed that consumers are most interested in F&I products that protect major mechanical components, electrical components, and technology features.

Addressing affordability concerns, the report suggested that dealers are exploring strategies such as offering a wider range of F&I products and focusing on options for used cars.

Protective Asset Protection emphasized the importance of early consumer education about F&I options, with more than 18% of dealers believing that consumer-facing online education early in the research process would help increase sales.

“The report highlights the critical role of F&I products in dealership success, especially as margins on vehicle sales continue to tighten,” Kurtz said. “We’re observing a growing interest in products that protect major mechanical components, electrical systems, and advanced technology features. This trend aligns with the increasing complexity of modern vehicles and consumers’ desire for long-term protection of their investments.”

The 2024 F&I Annual Update Report also delved into the growing significance of wealth-building programs for dealerships, highlighting opportunities such as dealer-owned warranty companies and reinsurance programs.

Furthermore, the report provided insights into the specialty markets, including the marine and RV industries.

“Looking ahead, dealers who can effectively leverage digital platforms, offer a diverse range of F&I products, and focus on early consumer education will be well-positioned for success,” Kurtz said.

“Additionally, the growing importance of wealth-building programs, such as dealer-owned warranty companies and reinsurance options, offers dealers new avenues for financial growth and stability,” he went on to say.

The entire report can be downloaded here.