F&I Pay Plan Suggestions

Brandon Sloan

We are a small independent store that averages about 45-50 deals a month.  My F&I Mgr recently came to me about his compensation package.  

His current pay plan is-

•    3% Front Back Pack – No Doc less chargebacks  
•    12+ Service Contracts +$250    
•    20+ Service Contracts +$500
•    30+ Service Contracts +$1000
•    20+ Gap +$300 
•    30+ Gap +$500
•    40+ Gap +$700
•    10+ Tire/Wheel +$200
•    16+ Tire/Wheel +$350
•    20+ Tire/Wheel +$450

Product Penetration Bonus    
80% Product Penetration    $400 Bonus
90% Product Penetration    $600 Bonus
100% Product Penetration    $800 Bonus
110% Product Penetration    $1200 Bonus

Bonuses not retro

•    F&I Gross must be a minimum of $400 per copy for any bonus to be in effect.

We do a lot of subprime so I think this is a fair and aggressive pay plan.

Our F&I mgr has been with us just over a year now and over the last 90 days our backend #'s have improved we are now averaging about 600 pvr on the back and 100% product penetration, IMO could still use a lot of improving.  

My F&I Manager wants to be paid 20-25% of only backend profit and still receive product bonuses like in the pay plan above.  

I am not really sure how others are being paid so I am looking for suggestions. Thanks for the suggestions.






Amanda Gordon

Hey Brandon, does this person strictly do F&I? I know in Independent's they tend to wear several hats. That will give me a better idea if you don't mind.

Brandon Sloan

Mainly  They do fill in on the desk 1 day a week when the Desk Mgr is off.  They also help with the advertising.

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