F&I (Finance and Insurance)
The dealership department responsible for vehicle financing, loan processing, and selling aftermarket products.
Definition
F&I stands for Finance and Insurance. It is the department within a dealership that handles the financial paperwork for a vehicle sale, arranges loans with lenders, and offers value-added products like extended warranties, gap insurance, and wheel protection. F&I is a major profit center for dealerships, often contributing significantly to the overall gross profit per unit.
Related Terms
Front-End Gross
The profit made on the sale of the vehicle itself, excluding finance and insurance products.
Back-End Gross
The profit generated from financing, warranties, and other products sold in the F&I office.
Digital Retailing
Tools that allow customers to complete part or all of the vehicle purchase process online.
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