Approximately 10 years ago, I was on one of my last long rides before selling my motorcycle. I stopped at a small roadside diner to fuel up and grab a quick bite.
While I was sipping my coffee, I noticed an RV parked nearby. The hood was up, tools were scattered, and two kids sat on the curb, looking disappointed. Their air conditioning had failed in the middle of a summer trip, leaving the family scrambling for parts and a repair shop.
Instead of exploring new places and making memories, they were stuck dealing with unexpected repairs and surprising costs.
Watching that scene unfold reminded me just how quickly an adventure can turn into a headache when things go wrong, and how critical it is for RV owners to have the right protection in place before they hit the road.
A Major Investment Worth Protecting
The RV lifestyle is all about freedom and adventure, but RVs are among the largest investments many families make. According to RVIA data, the average new motorhome costs over $150,000, with high-end Type A models exceeding $500,000. Towable RVs often cost from $30,000 to $80,000 or more.
Beyond the initial purchase price, RV ownership entails hidden costs, including storage fees, routine maintenance and unexpected repairs. Annual maintenance and upkeep often range from $1,000 to $4,000, but major repairs such as engine failures or roof replacements can easily top $10,000.
Many buyers underestimate these potential expenses. As a result, when faced with large repair bills, they often dip into emergency savings or cancel trips altogether. Offering comprehensive protection products to consumers becomes a true value-add rather than an afterthought.
Dealerships have an opportunity and a responsibility to educate buyers about these risks. When positioned correctly, protection products are not just an upsell; they are an essential part of responsible RV ownership. Dealers who prioritize F&I protection product sales are more likely to earn long-term loyalty and repeat business.
Why Payment Flexibility Matters
According to the National Automobile Dealers Association (NADA), F&I products can contribute up to 40% of a dealership’s total profit. Despite this, many RV buyers hesitate when faced with large upfront costs. Payment flexibility helps break down the objection of upfront costs, making protection products more accessible.
Payment flexibility refers to offering consumers multiple payment options. Buyers can roll F&I products into their RV financing or use third-party lenders to finance the products separately from the primary loan. Separate financing is especially valuable for cash buyers or consumers who prefer to keep their main RV loan balance lower but still protect their RV.
Some finance partners now offer terms up to 84 months, which can significantly reduce monthly payments. The option to spread costs over time enables buyers to focus on the value and security the products provide rather than the immediate price tag.
According to Cox Automotive’s 2023 study, nearly 70% of buyers said they would be more likely to buy additional F&I products if they could finance them in smaller monthly installments.
Moreover, nearly 25% of RV buyers pay cash for their units, based on RVIA data. Cash buyers often assume they must cover protection costs entirely out of pocket, but third-party financing enables them to secure critical coverage without impacting their cash flow. For cash buyers, providing payment flexibility can be the deciding factor between accepting and declining F&I products.
Payment flexibility not only drives sales but also reduces cancellations. When customers commit to affordable, manageable payments, they are less likely to cancel later, protecting dealers’ revenue.
More Products, More Profit
The F&I product range available to RV buyers provides ample opportunities to build value and drive margin. Extended service contracts remain the cornerstone, covering high-cost repairs on major systems and components, often achieving gross margins above 50%.
Tire and wheel protection plans are another top performer. RVers frequently travel to remote or rough roads, and tire failures can be dangerous and expensive. The protection packages are typically priced between $1,500 and $2,500 and are perceived as practical safeguards rather than luxury add-ons.
Paint and fabric protection plans help keep RVs looking new and maintain resale value. Roadside assistance plans ensure help is always a call away. Key replacement and windshield protection plans continue to rise in popularity. New keys can cost upwards of $500, and windshields often exceed $2,000.
Dealers should bundle these offerings whenever possible.
For example, combining extended service, tire/wheel and roadside assistance into a single package simplifies buyers’ decision-making process and increases overall product penetration. According to a 2022 Protective Asset Protection survey, bundled packages resulted in 18% higher acceptance rates compared with individual offerings.
Highlighting lifestyle benefits makes these products even more appealing. Rather than focusing purely on repairs, emphasize buyers’ ability to continue their adventures uninterrupted. Many families see RV trips as their primary vacation each year. Tying F&I products to the promise of uninterrupted family experiences can transform buyers’ perspectives.
Margin Impact in Detail
While front-end RV sales typically yield roughly 15% gross margin, F&I products can achieve margins over 50%. Even small increases in product penetration deliver significant returns.
For example, a dealership selling 300 RVs per year that achieves an extra $3,000 per RV in F&I gross profit will add $900,000 annually in profits. Over five years, that represents $4.5 million, fueling business growth, improved service operations and stronger team compensation from selling one or two F&I protection products per RV.
Flexible payment options play
a critical role in unlocking this potential. When buyers feel financially comfortable, they are more open to adding higher-value products, and they are less likely
to cancel those products later.
Additionally, keeping customers engaged with F&I products builds long-term retention. Buyers with active protection plans are more likely to return for service, buy aftermarket parts and eventually upgrade or trade in their RV with the same dealership. An ongoing relationship with the consumer generates a steady revenue stream and supports a strong referral network.
Framing Makes the Difference
Presentation is key to successful F&I sales. Introducing products early in the sales process helps buyers see them as essential ownership components rather than optional extras.
Framing product costs in relatable terms—for instance, “less than a cup of coffee a day”—makes protection feel accessible. Using real-world examples of expensive repairs, such as $3,000 slide-out motor replacements or $4,000 refrigerator failures, enables buyers to visualize potential financial risk.
Dealerships that position their team as advisors rather than salespeople see greater success. When buyers feel the dealership is truly invested in their long-term happiness and safety, trust and acceptance naturally increase.
Integrating Training and Technology
A successful F&I program relies on well-trained, motivated employees. According to a 2023 NCM Associates report, dealerships with ongoing F&I training saw 20% higher product penetration rates than those without.
Effective training programs focus not only on product knowledge and compliance but also on communication skills and building buyer trust. Employees must be confident in presenting products and answering detailed customer questions without resorting to high-pressure tactics.
Technology enhances these efforts. Digital tools such as eRating and eContracting streamline the process and eliminate paperwork bottlenecks. Tablet-based presentations provide an interactive experience, enabling buyers to review options and ask questions comfortably. Transparency and clarity build trust and ease customers’ commitments to additional products.
Creating a dealership culture that embraces consultative selling and prioritizes customer experience ensures a higher success rate and strengthens team morale.
Profit Potential for Dealerships
Focusing on F&I payment flexibility is among the most powerful strategies for boosting dealership profitability and driving long-term growth. Younger buyers, in particular, expect tailored financing options and a seamless purchase journey. According to a 2023 RVIA report, nearly 40% of new RV buyers are under 45 and accustomed to spreading out payments for major purchases.
Dealerships that embrace these expectations position themselves as market leaders. Beyond immediate margin improvement, dealers build stronger relationships, achieve higher retention rates and foster long-term brand advocates.
Helping customers protect their investment is not just about boosting revenue—it is about delivering on the freedom and adventure RV buyers crave. The family stuck at the roadside diner could have continued their journey worry-free if they had the right protection plan.
By prioritizing payment flexibility and integrating the options into a thoughtful F&I strategy, dealerships help ensure customers spend more time exploring and less time worrying. A strong, flexible F&I program is good for business and every family dreaming of open roads, starry nights and unforgettable memories.
Brenda Cline-Kereakes is the chief operating officer at Line\5, bringing extensive leadership experience across the RV and other industries. A recognized F&I training and development expert, she has coached countless dealership teams on best practices for profitability, compliance and customer satisfaction.
