Protective Asset Protection’s 2025 F&I Industry Report offers analysis of “a maturing industry landscape.”
The company said F&I across RV, automotive, marine and powersports was characterized by moderating growth, persistent affordability challenges and a strategic shift toward omnichannel customer journeys.
Protective Asset Protection Senior Vice President and Chief Distribution Officer Rick Kurtz said market headwinds are beginning to take a toll.
“While F&I sales growth remains resilient for most, the rapid expansion we saw post-pandemic has given way to a more nuanced reality,” Kurtz said. “Dealers are no longer just overcoming price objections; they are tasked with a fundamental re-education of consumers to demonstrate the vital value of F&I protection in a high-cost environment.”
The report emphasizes F&I product adoption’s growing importance in the RV industry. GAP coverage and extended service contracts offset lower front-end margins and protect consumers against rising repair costs and negative equity.
“Steady but lower sales volume requires maximization of F&I profit per deal,” the report said. “RV dealerships, which often see higher F&I profit per deal than auto, should leverage strong F&I execution and a broad product portfolio to counter lower unit margins.”
The report said GAP adoption rose as consumers financed over longer loan terms. In such instances, the report said GAP coverage is a key F&I product.
Extended service contracts are also seeing increased adoption as consumers hedge against rising repair costs.
Protective identified digital F&I adoption as a dealership expansion opportunity.
“Economic pressures are accelerating the adoption of remote F&I solutions,” the report said, “which allow smaller and mid-sized RV dealerships to access top-tier F&I talent and a wider product portfolio, enhancing profitability without increasing overhead.”
The report said F&I providers should tailor products specifically for increasingly popular used RVs. Such programs might include older RV mechanical breakdown coverage.
