F&I reporting is crucial for understanding the big picture of how your stores are doing, identifying problems before they spiral, and keeping your team motivated.
Measuring and tracking F&I performance is the best way to understand where you’ve been and where you’re headed. But internal data isn’t enough. You also need benchmarks to determine how you’re performing relative to competitors in your brand, region and the automotive industry as a whole.
What exactly should your F&I goals be? In this article, we’ll tell you which metrics to track and provide benchmarks based on aggregated data from more than 6,000 dealerships in partnership with F&I solutions provider StoneEagle.
Digging into the F&I performance metrics
The three key F&I performance metrics every dealer should be tracking are PVR, PPD and product penetration.
To understand the benchmarks in this infographic, it’s important to realize that every dealership has its own way of doing F&I reporting for automotive. Some sales departments include and sell F&I products in the initial payment quote, some administer their own F&I products, and some include processing fees or accessory sales in these numbers.
PVR
When it comes to PVR — the gross income you make on each vehicle sold — the nationwide average is around $1,700-$1,900, and trending upward. Average PVR also varies by region and OEM.
The last few years have been unique for PVR in car sales compared to pre-pandemic statistics, and numbers are likely skewed by low inventory. In 2019, the average PVR reported in our Dealer Performance Scorecard survey was just $1,214. In 2021, the average was $1,923.
If you’re having trouble understanding how your PVR compares to the competition, working with a partner with broad industry knowledge can help.
PPD
The benchmark for PPD, or the average number of F&I products sold with each deal, is between 1.3 and 1.7 products. PPD has seen steady growth year over year despite the volatility of the marketplace. This is because dealers have remained committed to refining processes and because consumer confidence in F&I products is higher than ever.
PPD can also fluctuate based on deal type. Finance and lease deals will have higher PPD, while cash purchases are sometimes seen as low-opportunity deals for F&I. However, with the right processes, this doesn’t have to be the case.
To really understand your PPD numbers, it’s best to segment data by deal type (finance, lease, used, and EV) and by individual F&I managers.
Product Penetration
The benchmark for product penetration, or the percentage of deals in which an F&I product is sold, will vary based on location and brand, but industry averages for key F&I products are: Service contracts (46%); GAP (45%); and prepaid maintenance (17%).
Ancillary products like appearance and theft protection may have lower penetration, but remain popular with certain customers.
These benchmarks include data from dealers that build certain F&I products into deals as well as from those who don’t. Consider how your dealership is reporting when comparing your performance to benchmarks.
With these metrics on hand, you can identify specific opportunities for training, performance improvement, and new products.
More dealership performance factors that impact F&I
Beyond these core metrics, here are a few other factors to consider when tracking and measuring F&I performance:
Product performance and profitability
F&I performance is heavily impacted by the products you offer. Your F&I menu shouldn’t be a static solution. It’s important to continually reevaluate the F&I products you sell based on the data you collect. You might find that certain products aren’t delivering profit for your business or value for your customers, and decide to seek out other options.
Customer Satisfaction (CSI)
Another important metric, though one that’s more difficult to benchmark, is customer satisfaction (CSI). This metric goes past revenue to measure indicators of the things that make a dealership sustainable in the long-term: customer loyalty, customer retention, and reputation.
It’s likely that your OEM conducts regular CSI surveys once a customer makes a purchase, which can shed light on key touchpoints that may be opportunities for improvement in your dealership.
Training and process optimization
If your F&I performance metrics are consistently below benchmark, it’s likely that talent and processes are important factors. Luckily, a full-service F&I partner can provide effective training and proven processes to optimize your program and boost your numbers.
Where do you go from here?
The benchmarks provided in this article are a good starting point. To figure out more specific benchmarks that make the most sense for your region, brand and dealership size, there are a few resources to turn to:
- External data like industry reports
- Internal data, which may be out of scope for smaller operations
- Industry partners
Partnering with the industry experts at JM&A Group is the best way to track and understand your F&I performance. We aggregate data from dealers nationwide and segment it by factors like location and OEM. We also set up clients’ data processes, and recommend targeted training and improvements to help them reach their goals.
Measuring and tracking F&I performance is the first step toward optimizing your F&I business. At JM&A, your success is our success, and we work alongside you to help improve your performance with measurable, results-driven support.
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