NewsApr 16th, 2018

Protective Asset Protection Reveals Latest Dealer Survey on Vehicle Service Contracts/F&I Offerings


Chesterfield, MO April 16, 2018 — Protective Asset Protection, a provider of F&I programs, services, and dealer-owned warranty programs, announced today results of its latest survey addressing dealer concerns and opportunities with F&I product offerings. Behind financing, additional F&I offerings represent the second-largest opportunity for margin growth for dealers (57.6%). The online survey was presented to approximately 1,573 dealership owners and professionals between March 5-9, 2018.

The results show that the majority of dealers are concerned with falling auto sales, as well as dealership consolidation and administrative challenges to their current roster of F&I products. More than three quarters (78.8%) of dealers surveyed said their current F&I products don’t offer enough margin for the dealership, and nearly half (48.5%) said their current F&I offerings are too much of an administrative burden. A significant number of dealers said they sell a vehicle service contract on 15% of all new vehicle sales.

While 36% said they sell a vehicle service contract on 25% of used vehicle sales. Dealers also said the top three barriers to selling vehicle service contracts include inadequate coverage (66.7%), price and customers not seeing the value each at 63.6%. Ideally, 63.6% of dealers said they would like to have more control over claims adjudication for their F&I products, and another 57.6% said they would like to have control over branding their own F&I products.

Training remains critical, as 54.5% said more training is needed to sell F&I products, and 51.5% said more education is needed to help sales staff when handing customers over to the F&I office. “Margin opportunities will remain a central concern for dealers in the coming years, especially as sales pressures increase for both new and used vehicles,” said Rick Kurtz, Senior Vice President - Distribution Protective Asset Protection.

“Many of these dealers will rely on F&I offerings to make up this margin, but they’re saying they want their own F&I products they can offer to their customers to increase margins further, help with the overall branded experience, and improve customer satisfaction.”

About Protective Asset Protection

Protective Asset Protection provides vehicle protection plans, GAP, and credit insurance through vehicle dealerships. Protective Asset Protection has been serving dealers for more than 55 years and currently provides products and services to automobile, marine, RV and powersports dealers. Protective Asset Protection is part of the financial services holding company, Protective Life Corporation.

For more information about the Protective Asset Protection call 800-323-5771, or visit

About Protective Life Corporation

Protective Life Corporation provides financial services through the production, distribution and administration of insurance and investment products throughout the U.S. The flagship subsidiary, Protective Life Insurance Company, was founded in 1907. Protective’s home office is located in Birmingham, Alabama. As of December 31, 2017 the Company had assets of approximately $79.6 billion. Protective Life Corporation is a wholly owned subsidiary of Dai-ichi Life Holdings, Inc. (TSE:8750, “Dai-ichi”). For more information about Protective, please visit

Media Contact

John Sternal, Merit Mile for Protective, 954-592-1201

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