Building a profitable F&I department, from Boating Industry.
Advice from leading dealers and providers on maximizing F&I
It can be one of the best ways to increase dealership profits, but a strong finance and insurance department isn’t often top of mind for many dealers.
But not putting the time and effort into your F&I department means you’re leaving money on the table, says Mike Hoffman, owner of Marine Center of Indiana.
Having a good F&I department is crucial to his dealership’s success. It means more money for the dealership, more deals closed and a better customer experience, Hoffman said.
From financing to extended service plans and warranties to GAP insurance there’s plenty of money to be made in F&I. The average Top 100 dealer, for instance, has a 67.2 percent gross profit margin on its F&I department, compared with 58.9 percent on service and 18.2 percent on boat sales.
