August 1, 2021

Score another one for offering more F&I products online

Another day, another industry survey of U.S. dealerships that indicates offering finance-and-insurance products online has proved profitable amid the ongoing coronavirus pandemic period.

Dealerships believe a more diverse lineup of F&I products with different coverage tiers helps sell those products to digital retailing customers, according to a new study from F&I provider Protective Asset Protection. The survey comes in the wake of numerous auto lender, F&I product provider and automotive finance software company studies that claim the exact same thing: offering educational and transactional tools for the F&I office online increases sales and profitability of those products.

In a survey of 500 F&I and dealership executives across the U.S. in March, dealership respondents indicated customers are looking for more customization with F&I product coverage. Forty-four percent of respondents said the ability to adjust products to a customer’s needs is most important when it comes to selling F&I products online. Forty-one percent said customers self-selecting F&I products and coverage options is another priority online.

The survey strengthened industry claims that more F&I product information is accessible online than ever before, and consumers are responding to the increased transparency.

Forty-five percent of dealers now make F&I product information available online, and 35 percent incorporate financing options or loan applications into their digital processes. F&I product selection and pricing is available online at 33 percent of respondents’ dealerships.

Customers want to read about F&I online ahead of dealership visits. The more information they have, the more empowered they are when making a decision about how to protect their vehicle purchase. Enough said.