A recent survey of auto dealers shows they’re adapting to address consumer affordability issues, and the finance-and-insurance department is understandably key.

While overall F&I sales are on the rise, according to the findings, affordability concerns affect those, too, and many consumers lack awareness about products, the annual Protective Asset Protection poll found.

More than 70% of responding dealers said their F&I business increased last year, 31% of them by more than 10%. Yet many consumers still have limited knowledge about F&I products, the survey showed, nearly 30% declining them due to lack of awareness.

Online F&I sales are a bright spot, representing a growing share of business. Some 20% of the 450 responding dealers indicated that at least 75% of customers bought F&I products online in the previous 12 months, and almost 70% said online F&I offerings have resulted in moderate to significant F&I sales increases.

Dealers recognize the importance of tapping the internet for business. Nearly 20% of poll respondents said they believe online consumer education about F&I products early in their vehicle shopping would increase sales. In its survey report, Protective recommended dealers boost their online efforts toward that end.

While general consumer affordability concerns present challenges for dealers, even in F&I sales, poll participants said they also see opportunities in increased used and electrified vehicle sales. “These trends provide new avenues for tailored F&I products,” the survey report says.

Still, dealers recognize the hurdle of inflated vehicle prices, interest rates and more, and many are adapting by offering a wider F&I product selection, emphasizing used-vehicle options, and offering solutions that help consumers overcome affordability challenges.

The product types most affected by consumer financial constraints include theft and tire-and-wheel protection and appearance products, the poll found, and Protective suggested dealers could tweak their product mix or pricing on those in order to address the challenge.

Protective conducted the survey in November.

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