Though there was a drop in the average number of deals, finance and insurance (F&I) offices still saw an increase in profits and averaged $1,989 in F&I profit per vehicle in the first half of 2026, according to a new report from StoneEagle.
Driving the news: The price of new vehicles increased to around $50,000, and the percentage of deals with financing terms stretched to 72 months was 31% (Cox Automotive) and 84 months at nearly 14% (JD Power).
At the same time, negative equity on trade-ins hovered around 30% (JD Power) and down payments dropped to 13% (Cox Automotive).
StoneEagle pointed out that affordability pressures have cut front-end gross from their peak of $2,746 per deal in January 2022 to $532 in June 2026.
Zooming in: In the F&I office, dealers have been able to make up ground, with StoneEagle CEO Cindy Allen noting “F&I generated nearly eight out of every 10 gross dollars per deal,” across six months.
Profit per vehicle increased 5.7% year-over-year to the $1,989 figure.
The average monthly F&I income per dealer rose 2.6% to $217,705, though the average number of deals dropped 4 per month to 109.
“The cost of the vehicle is increasing. You’re seeing some extended terms being offered to customers… So when you add all that together, what you see is this increase in value for these protection products,” Allen told CDG News.
Vehicle service contract lead products: The average age of vehicles on the road hit 12.8 years last year, according to the Bureau of Transportation Statistics.
As consumers hold on to vehicles longer, they appear to be putting more of a premium on getting extended warranties, with vehicle service contracts maintaining a 45% penetration.
Prepaid maintenance, with consumers being able to lock in maintenance costs, was at 16%.
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GAP protection increases: The percentage of buyers purchasing GAP increased 1% year-over-year to 39%.
With the increased cost of vehicles and the negative equity on many vehicles, GAP was the second most likely add-on to be purchased and 18% more than the next item.
“With the longer term, there is more risk that the consumer has a total loss happening at a point where they have little equity,” Allen explained. “A component of protecting that consumer’s budget is protecting it through GAP should something happen that’s a total loss. Again, people are seeing value in this.”
Bundles below 10%: Dealers sold 1.55 products per deal.
StoneEagle’s first-quarter report showed the bundled packages at 7% penetration.
Allen noted that the bundle remains a good way to introduce options and lead to consumers picking the products that match their needs and affordability.
Bottom line: Allen pointed out that F&I directors are pulling multiple levers to help consumers with affordability and also provide sufficient coverage for their investment in vehicles. She suggests dealers leverage their technology to find the right solutions for consumers, building on the strong increases from the first half of the year.
“I think we’ll continue to see strength in F&I revenue that dealers are securing in their dealerships,” Allen said.
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