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    • Extra News
September 23.2025
2 Minutes Read

Resilient F&I Profits Amid Market Fluctuations: Key Insights for Dealership Owners

Infographic on auto F and I trends showing Q2 2025 vs. Q2 2024 data.

F&I Metrics Up Amidst Industry Challenges

In the rapidly changing world of auto dealerships, finance and insurance (F&I) departments are proving to be a financial lifeline. Recent data from StoneEagle reveals that F&I profit metrics have increased in the second quarter of 2025, defying the downward trend seen in front-end dealer gross profits. Despite an alarming 26% drop since January and a stunning 40% decrease from the 2024 peak, average F&I profit per vehicle climbed to $1,924, reflecting an encouraging 5% rise quarter-over-quarter and an impressive 8% year-over-year increase.

The Resilience of F&I Sales

Dealerships are adapting to the pressing challenges of consumer affordability and high trade tariffs, relying on F&I profitability to stabilize their financial health. Average monthly F&I revenue surged to $220,640, demonstrating a robust rise of 8% compared to both the previous quarter and the same time last year. This uptick indicates that while gross profit per vehicle hovers at $2,625—up 10% year-to-date—F&I departments remain crucial profit drivers amid volatile revenue landscapes, emphasizing their resilience in maintaining dealership stability.

Product Trends Show Strength

Notably, the distribution of F&I products illustrates evolving consumer preferences. Service contracts now account for 45% of F&I sales, marking a year-over-year increase. Gap coverage and paint-and-fabric protection also witnessed growth to 38% and 20%, respectively. These figures highlight shifting consumer behaviors, as more buyers become aware of the added value these products offer in protecting their investments, especially in a market where vehicle prices are expected to fluctuate due to trade tariffs.

Future Predictions for F&I

As we look towards the future, the trend toward enhanced F&I sales is set to continue. With the average dealer leveraging more products per deal—from 1.54 in Q1 to 1.57 in Q2—it is evident that dealerships are increasingly motivated to educate themselves and their customers on the value proposition of F&I products. Industry leaders suggest that investing in automotive training, such as automotive classes online or specialized auto sales training, will equip dealership teams with the necessary skills to optimize F&I offerings and secure higher customer satisfaction.

Actionable Insights for Dealership Owners

For dealership owners and general managers, embracing the evolving landscape of F&I is critical. Implementing an automated online course for F&I training could vastly improve staff competence in effectively pitching products while addressing common misconceptions about F&I contributions to overall vehicle sales. Establishing an automotive training center or car training day could provide valuable, hands-on experiences for staff, ultimately leading to improved customer interactions and satisfaction.

In conclusion, as the automotive industry navigates through financial uncertainties, investing in F&I and ongoing education will be paramount. For more info call: (860) 707-9125.

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09.23.2025

Spotting Synthetic ID Fraud: Essential Steps for Automotive Dealerships

Update Understanding Synthetic Identity Fraud in the Automotive SectorSynthetic identity fraud is an emerging threat that car dealership owners need to be aware of as it poses significant financial risks. The unique nature of synthetic identities—created by blending real and fake information—makes them particularly hard to detect. According to TransUnion, the cost of synthetic identity fraud has already resulted in a staggering $3.3 billion lost among U.S. lenders. This alarming trend has momentum, evolving methods that fraudsters use to create seemingly legitimate identities.Identifying the Telltale Signs of FraudOne of the most effective strategies for combating synthetic identity fraud begins with awareness. TransUnion highlights specific characteristics that can help dealership owners identify potential frauds. For instance, a high percentage of synthetic identities lack vehicle registrations or known family connections, which raises their risk profile significantly. A staggering 30% to 50% of synthetic IDs fall into this category, indicating they’re far more likely to be fraudulent. Furthermore, examining the absence of open bankruptcies can present a unique opportunity for dealers to distinguish between legitimate identities and synthetic profiles.Implementing Advanced Data Assessment TechnologiesIn today’s digital age, relying solely on traditional methods to assess identity is no longer sufficient. TransUnion suggests leveraging sophisticated data-assessment technologies to enhance fraud detection capabilities. Using automated online courses and training programs can equip dealership owners and their staff with the necessary skills to spot fraud early. Dealers can also consider enrolling in automotive classes online to gain insights into the latest automotive sales training methods that incorporate advanced fraud detection techniques.Anticipating Future Trends in Auto Sales FraudThe landscape of fraud, particularly in auto financing, is expected to become even more complex as synthetic identity fraud continues to evolve. Understanding trends in auto F&I (Finance and Insurance) will be crucial for dealership owners looking to safeguard their businesses. With the rise of digital business cars and subprime loans for cars, the potential for fraudulent identities to enter the market could increase. Therefore, continued vigilance and investment in education about these emerging threats will be vital.Actionable Steps to Protect Your DealershipAs dealership owners consider how to protect their businesses from synthetic identity fraud, taking proactive steps is essential. Engaging in regular training, such as car training days for staff, can help build awareness on the identifiers of synthetic identities. Additionally, employing automated tools to support customer verification will enhance the security of your financing processes. Remember, the more informed your team is, the better protection you can provide against potential fraud.For further information on how your dealership can protect itself against synthetic identity fraud, call us at (860) 707-9125.

09.21.2025

Auto Thefts Decline Nationwide: How Hyundai and Kia Still Lead in Incidents

Update Understanding the Decline in Auto Theft Rates As the automotive landscape in the U.S. shifts, recent statistics reveal a significant decline in auto thefts, with a remarkable 23% drop year-over-year in the first half of 2025, bringing the total to over 334,000 thefts. This trend marks a return to pre-pandemic levels and indicates a concerted effort from law enforcement agencies and organizations like the National Insurance Crime Bureau (NICB) to tackle the surge in vehicle thefts that peaked during the COVID-19 pandemic. Spotlight on Hyundai and Kia Interestingly, even as overall theft rates decline, Hyundai and Kia vehicles remain prime targets for thieves. Four of the top ten most stolen vehicles in America are from these South Korean automakers. The NICB reports that models produced between 2011 and 2022 are particularly vulnerable due to inadequate standard antitheft features. Despite these issues, steps have been taken to address this vulnerability; free software upgrades launched in early 2023 have resulted in a reduction in theft rates for these models. The Stories Behind the Numbers While many auto thefts are individual crimes, a significant portion is orchestrated through organized theft rings. Such complexity calls for advanced measures in crime prevention. The NICB has increasingly turned to data analytics to develop strategies to counter these thefts, partnering with law enforcement and private sectors. This multifaceted approach aims not only to resolve theft incidents but also to prevent future occurrences. Comparative Data: National Theft Rates The NICB indicates that the national average theft rate has significantly decreased from around 127 thefts per 100,000 residents to 97. Such data emphasizes the positive impact of coordinated efforts among various stakeholders in curbing auto theft. However, state-by-state analysis shows all states, except Alaska, reporting declines, indicating a nationwide improvement in vehicle security. Moving Forward: The Road to Safer Vehicles For car dealership owners and general managers, understanding these trends is crucial. Not only do they reflect a changing market and consumer awareness, but they also underline the importance of incorporating advanced automotive training programs focused on safeguarding vehicles. By emphasizing security features in auto training classes, dealerships can better inform customers about protecting their investments. As auto sales training evolves, digital tools and online courses play a pivotal role in the education of both staff and consumers. Understanding how to integrate vehicle security features into sales practices could be a game-changer for many dealerships. The evolving auto finance landscape, including subprime loans and their connection to vehicle theft, may also influence future purchasing decisions. To stay ahead, dealerships must engage in continuous learning about emerging trends. For more information on how to enhance your understanding of vehicle security trends and auto finance options, don't hesitate to contact us at (860) 707-9125.

09.21.2025

Traffic Fatalities Fall: What This Means for Auto Sales and Safety

Update Traffic Fatalities: A Notable Decrease Despite Increased Miles Recent statistics from the National Highway Traffic Safety Administration (NHTSA) reveal a promising decline in U.S. road fatalities, showing a decrease of 8% in the first half of 2025, even as vehicle miles traveled rose significantly. With over 17,000 lives lost in these six months, the road safety improvement is notable but still highlights a persistent concern. An Encouraging Trend with Caveats According to NHTSA Chief Counsel Peter Simshauser, this substantial drop—the steepest since 2008—can be attributed to collaborative efforts among state and local partners, particularly law enforcement, aimed at enhancing road safety. While the reduction in fatalities is welcome news, Simshauser emphasizes the continued commitment needed to further decrease these numbers, which remain unacceptably high. Understanding the Data: A Closer Look at Fatality Rates As Americans drove 12 billion more miles last year, the fatality rate has dropped to about 1.1 deaths per 100 million miles, marking a 9% year-over-year decrease. The statistics show that 38 states along with Washington, D.C., and Puerto Rico reported lower fatalities. However, 11 states experienced increases, suggesting a varied landscape of road safety across the country. Seasonal Risks: Anticipating the Fall Despite the positive trajectory, the NHTSA cautions that the upcoming fall season could present challenges. A report by Carfax highlights that autumn is typically the most dangerous time of year for drivers, with an increase in crashes due to reduced daylight hours and adverse conditions such as slick roads and deer encounters. Car dealerships can play a pivotal role during this season by keeping safety features in mind when marketing used cars, particularly given that the demand for such vehicles often increases in fall. Implications for the Automotive Business Given the improving yet volatile road safety landscape, car dealerships and general managers should consider how these factors might affect customer behavior and preferences as they approach the fall. Training in automotive safety standards and vehicle features that enhance driver awareness could be beneficial. Promoting advanced safety technologies may also empower consumers to make informed decisions when purchasing new or used cars. The Future of Road Safety: Need for Continued Awareness The decrease in traffic fatalities is a step in the right direction, but industry players must remain vigilant and proactive. Whether through automotive classes online or traditional in-person training, equipping staff with knowledge on safety innovations can reinforce a dealership's commitment to customer safety. Moreover, understanding common car loan terms and financing options can help customers manage their investments wisely as they consider purchasing used or pre-owned vehicles. Stay Informed and Prepared As seasonal safety challenges loom, staying informed about the latest in auto safety and trends will empower dealerships to better serve their clientele. For more info call: (860) 707-9125.

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