A stronger retail market — and higher stakes for F&I

After several uneven years, retail vehicle demand has rebounded: multiple industry trackers show retail new-vehicle sales rising year-over-year through 2025 (for example, J.D. Power projected a ~7.8% increase in new-vehicle retail sales for August 2025 versus August 2024, and other industry trackers reported mid-single-digit retail growth in recent months).

That recovery is good news — but it raises the bar for dealership finance & insurance departments. F&I gross profits have climbed back toward historic highs, with industry reports noting gains in average F&I gross profit per vehicle in recent quarters. At the same time, customers are more digitally informed, compliance scrutiny has intensified, and dealers are expected to deliver faster, more transparent, tech-enabled F&I experiences. These trends mean F&I is no longer a back-office afterthought — it’s a core profit engine that must be modernized, measured, and managed.  

New expectations for F&I — three things dealers must get right:

1. Technology + transparency — buyers expect a digital, seamless F&I presentation and clearer product value-explanations; dealers that adopt modern F&I platforms win higher penetration and better compliance.  

2. Training & process discipline — effective, modern F&I selling requires continual training and consistent processes to protect margin while staying compliant.  

3. Data & pricing agility — rising new-vehicle prices and shifting term/credit dynamics mean F&I pricing must be dynamic and driven by real data, not habit.

   
   

Why dealer reinsurance is showing up in more conversations

Dealer reinsurance lets a dealer capture more of the underwriting profit and investment income tied to F&I products by issuing or reinsuring certain warranties and protection plans through an affiliated reinsurance vehicle. Properly structured, it can improve underwriting economics, increase retained premium reserves, and give dealers more control over claims handling and product design — though it also brings regulatory, capital, and governance considerations that require specialist advice.  

If your operation is seeing stronger retail traffic, now is the time to tighten F&I operations and evaluate whether a reinsurance structure (or improvements to your existing F&I program) could meaningfully improve cash flow and after-tax returns. Need help benchmarking your F&I PVR, designing a modern F&I presentation, or evaluating dealer reinsurance options? Advanced Dealer Solutions can run a complimentary diagnostics review and map practical next steps tailored to your showroom and goals.

—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

ADS is proud to sponsor Live2Lead Cleveland

Live2Lead is a leader development experience designed to equip you and your team with new perspectives, practical tools, and key takeaways from renowned leadership experts like John Maxwell and more. You’ll breathe new life into your leadership during this information-packed event. Join us for another amazing Live2LeadCLE!

Introducing our Risk Management Solutions

Being a dealer makes you unique, and not just in the fact that you are an elite entrepreneur, but your risks are entirely different than other businesses. Having worked with dealers on their insurance needs for over 30 years, we are keenly aware of the specific coverages dealers need, how to maximize your insurance dollars, and provide the best service to your entire team.

Click here to read the press release.

Registration Now Open for AFIP Boot Camp

Join us for our next regional onsite two-day boot camp! Click the button below to register.

What our Customers are Saying

Each month we’re featuring a testimonial from one of our customers so that you can hear in their own words about their experience with ADS.

Charity of the Month – Susan G. Komen

Help end breast cancer. Our mission is to save lives by meeting the most critical needs in our communities and investing in breakthrough research to prevent and cure breast cancer.

Apple Cider Pork Chops

This apple cider pork chops recipe makes a 15-minute weeknight dinner with deep, rich apple flavors that everyone will love. Not only are these apple cider pork chops tasty and quick for a weeknight, but they will also use up that jug of apple cider you have leftover in your fridge.

Shareworthy News Items

Honda CEO Toshihiro Mibe praises Ivan Espinosa’s performance reviving Nissan, report says

Why the Hertz-Amazon deal poses threats to auto dealers

Auto dealerships face growing loyalty crisis as customers fail to return

U.S. auto market faces pricing pressures, softening demand in Q4

The Biggest Winners and Losers in Auto Sales in Q3 2025

Auto Market Weekly Summary