Survey confirms rising appeal of online researching & shopping for F&I products
The latest industry survey by Protective Asset Protection sought to get a better understanding of growth patterns for online research and sales of vehicle transactions and F&I product offerings at dealerships across the U.S.
The provider of F&I programs and services conducted the online survey in August with more than 300 dealership executives participating.
According to most respondents, about 25% of their customers shopped for one of their vehicles completely online this year.
Protective indicated dealers around the country continue to review the right strategy for shoppers to research and purchase F&I products online, along with their vehicle research and selection.
According to the survey, 68.5% of dealers polled said they are likely or definitely a proponent of enabling customers to research their F&I options online.
In a separate question, 89.2% of participants said they are likely or definitely a proponent of enabling customers to purchase their F&I options online. Those dealers believe that having F&I options online will help customers take the time they need to make the right decisions, which can help lift F&I sales.
Most dealers — 58%, to be exact — also agreed that offering F&I product sales online as part of the retail transaction would be the most impactful way to improve their F&I product sales.
In addition, Protective discovered 49% of dealers said access to a more diverse set of F&I product options would also help improve their F&I sales.
Among dealers who offered F&I product sales online over the past 12 months, 67.2% said they’ve actually seen a moderate increase due to their online F&I options.
Asked what would help dealers sell more F&I products in the future, 49% said offering F&I products that could assist customers with vehicle affordability issues.
Regarding top products, 61.4% of dealers said they’re selling GAP coverage, followed by 61% selling pre-paid maintenance and 55.2% offering limited warranties and certified limited warranties.
Protective noted 49% of dealers said covering electrical components was the most frequent reason consumers cited for selecting F&I protection products, followed by 46% who said covering advanced technology features and 45% who said the need for emergency roadside services.
“The decision to include F&I options as part of the online research and shopping process is being closely monitored and considered by dealers and dealer management nationwide,” said Rick Kurtz, senior vice president and chief distribution officer of Protective Asset Protection.
“Similar to enabling more online vehicle research and shopping, it’s only a matter of time before a majority of the F&I selection process is also online. That said, it’s interesting to see the increase in F&I sales from those dealers polled who are already including F&I in their online shopping offerings.”