Finance and Insurance closing % and average gross profit?

Roger Page
The goal i have set for my team is $1200 on backend gross that includes Gap, Warranty, and Finance. What is industry average and above average?
Tom Vann
Good question, Roger! Here are some industry numbers specific for Used Cars... GAP 38% (although we average 58%!) - Some states control markup of GAP SERVICE CONTRACT 45% (lead by 3yr/36K, with 4yr/48K next) - average client pays $2100 for SC which averages $610 profit FINANCING 78% (we average 84%...7% cash...9% handled their own Fi) LIFE & DISABILITY 15% At least 45% of your clients should buy products from you (outside of finance dollars) You still have options to sell other products, too... Anti-theft Tire & Wheel Appearance Upgrades Key Replacement Windshield protection The percentages on these products floats a LOT depending on how much Spi-Fi business you do and vehicle product mix. Cheers! Tom
Christopher Murray
Roger, Tom has given you good targets and I hear many of those same penetration goals so I feel you are off to a good start. The "delivery" system you use will be critical to achieving your goals. Menu selling is the state-of-the-art in our industry and there are no shortage of companies all too willing to sell you theirs. A piece of advice: The Menu is really a way of forcing you, the professional, to present all of your products and services to all of your customers all of the time.....the 300% rule to some, no matter, just focus on a consistent presentation to every person you sit with!
James Klaus
If you don't want to use the traditional 4 column menu check our George Angus. It is a different way to do finance that is great! Again google George Angus and watch your per copy go up up up!
Christopher Murray
James is right in that you need to pick out an up-to-date method of delivering the information to your customers.
Tom Vann
Roger, here's another resource that works on the TOP TIER of F&I. They are called "The Vision of F&I" and they offer Hybrid Menu Selling systems. The head guy is Ron Martin. Here's a page link... I have no affiliation with these guys but I used their hybrid system for YEARS! before these guys we averaged only $690/copy. Afterwards, we floated between $1050 and $1450. Tom

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