EV Surge Shows AI Steadied Softer Q3
Finance-and-insurance provider StoneEagle released its third-quarter StoneEagleData F&I Benchmark Report, which tracks deal performance across more than half of the automotive retail market.
The report found electric vehicles accounted for about 6% of franchised dealer transactions in the third quarter. Nearly 60% of EV deals were leases, reflecting how dealers continued to use leasing to support affordability during the final months of the federal EV tax credit.
Total gross per deal also trended lower, driven by a sharp drop in front gross as dealers discounted vehicles to close deals.
“EVs drew a lot of attention this period, but they were only a small slice of what we measured,” said StoneEagle CEO Cindy Allen. “The data shows dealers leaned on leasing to help consumers into EVs, while consistent F&I revenue helped offset softer front-end results.”
Third-Quarter Highlights
Results showed steady F&I performance across key metrics. Deal counts rose nearly 3% year-over-year, and total F&I income per dealer increased almost 12%. F&I profit per vehicle retailed increased 8% year-over-year, while average products per deal rose 2.5%. Those gains helped limit total gross per deal to a 2.1% decline despite a 26% drop in front gross year-over-year.
- F&I profit per vehicle retailed: Averaged $1,933 per deal, up from $1,923 in the second quarter and $1,786 a year earlier
- Products per deal: Averaged 1.56 products compared with 1.57 in the second quarter and 1.52 a year earlier
- Average monthly F&I income per dealer: $222,677, up from $219,266 in the second quarter and $199,876 a year earlier
- Average front gross: $560 per vehicle, down from $839 in the second quarter and $761 a year earlier but still roughly 30% above pre-COVID levels.
- Total gross per vehicle: Averaged $2,493, down from $2,762 in the second quarter and $2,547 a year earlier
Product Performance, Mix
Product performance was steady, with service contracts and gap coverage continuing to anchor F&I revenue. Ancillary offerings held at roughly one-third of product-driven F&I revenue. Overall, product sales represented just over 60% of total F&I revenue for the quarter.
- Vehicle service contracts: Held steady at 44% penetration compared with 45% in the second quarter and 44% a year earlier
- Guaranteed Asset Protection: Reached 38%, consistent with the second quarter and up from 36% a year earlier
- Paint-and-fabric protection: Averaged 20%, up from 19% a year earlier
- Prepaid maintenance: Held at 16%, unchanged from both the second quarter and a year earlier
- Tire-and-wheel protection: Averaged 10%, matching both the second quarter and a year earlier
“F&I product providers continue to refine their offerings, and we’re seeing that show up in the data,” said Colin Snyder, general manager of StoneEagle’s Automotive Retail Solutions. “The data points to continued interest in bundled product and appearance packages when they’re presented clearly and consistently.”