A Revved-Up September from Advanced Dealer Solutions
Welcome to your September edition of Advanced Dealer Solutions Insights!
As we head into Q3, the auto retail landscape continues to shift in compelling ways—underscoring why strategic protection and expert support have never been more essential.
1. F&I Profit Per Vehicle (PVR) Is on the Rise
Foggy market signals are clearing: dealers are seeing stronger F&I performance. Nationwide, the average F&I PVR—the gross income on each vehicle sold—now ranges between $1,700 and $1,900, and continues to trend upward. For context, luxury-focused groups such as Penske and Lithia are exceeding this, with an average F&I PVR of $1,880. This means F&I remains a pivotal profitability driver—now more than ever.
2. Negative Equity Pressures Mounting
We’re seeing a growing wave of underwater trade-ins: in Q2 2025, 26.6% of new-car trade-ins carried negative equity—the highest recorded since Q1 2021. And the financial sting is sharp: the average amount owed on these upside-down loans was $6,754. That debt isn’t small change—it’s thousands deep, and it’s impacting consumer behavior and dealership dynamics alike.
3. Loan Terms and Interest Trends
Financing patterns reveal some key shifts:
New vehicles: average loan term is about 68.6 months, with interest rates near 6.7% annually.
Used vehicles: these come with an average term of 67.2 months and much higher interest—about 11.9%.
These numbers illustrate the delicate balance buyers face between manageable payments and long-term cost—even as negative equity and extended financing converge.
Why This Matters—And How Having The Right F&I Partnership Can Make a Difference
These trends highlight rising complexity in auto finance—challenges that can easily overwhelm the average buyer. That’s where having a true professional on your side becomes invaluable. Our team of Account Specialists and Account Executives successfully navigate these challenges each and every day. They know how to develop your team so you can continue to enjoy increased sales and profits.
Understanding deal structure and how to maximize the lender calls
Utilizing bi-weekly payments to accelerate pay-downs and reduce negative equity
Enhance F&I penetration through tailored product placement and client education
By working with a true income development specialist—us—you preserve your credibility, protect your margins, and deliver stronger client outcomes, even in turbulent market conditions.
Now, more than ever, dealers need expert guidance—and our risk-management team offers exactly that edge.
Happy selling (and protecting those profits)!
—The Advanced Dealer Solutions Team
Please contact us if you or your team are unprepared or underserved. We promise the 15-minute conversation will be worth it!
Events we will be attending:
F&I Product & Reinsurance Conference
NADA 2026
