July’s F&I Income Gain Was a Volume Story

Dealers processed more transactions than in June, while F&I PVR edged lower and a sharper decline in front-end gross reduced total gross per deal.

By Gregory Arroyo

July delivered the kind of improvement that looked better across the dealership than it did on the average deal. Dealers completed more transactions and generated more monthly F&I income than in June, but F&I profit per vehicle retailed (PVR) edged lower, front-end gross fell sharply, and total gross per deal declined.

Average deal count increased 3.1%, lifting average monthly F&I income per dealer 2.6% to $224,448. The increase in volume more than offset a roughly $10 decline in F&I PVR. The split continued a pattern seen each July since 2022: deal counts and monthly F&I income increased from June, while front-end and total gross per deal declined.

This insight comes directly from StoneEagleDATA’s latest report, powered by transaction-level data representing more than 50% of the automotive retail market. StoneEagleDATA delivers The Complete Picture of how sales conditions and F&I execution shape dealership profitability.

Inside the Average July Deal

Compared with July 2025, dealerships generated essentially the same monthly F&I income despite processing 3% fewer transactions. Higher F&I PVR helped offset the volume decline, adding about $59 per deal to reach $1,970, its highest July level since 2019.

The average deal was less profitable overall, however. Front-end gross declined by about $110 to $479, nearly twice the $59 increase in F&I PVR, leaving total gross about $51 lower at $2,449 per deal.

The increase in F&I PVR did not come from dealers selling more products. Products per deal declined from 1.56 to 1.52, while penetration rates across the five major product categories remained within about one percentage point of their July 2025 levels.

Instead, dealers generated more income from each product sold. Average income per product sold rose across all five major categories. Tire-and-wheel income recorded the largest increase at 8.9%. Service-contract, GAP and paint-and-fabric income rose approximately 4%, while prepaid-maintenance income increased 1.2%. Results across the other seven products tracked by StoneEagleDATA were mixed.

Financing also changed the shape of the July deal. Customers financed nearly $1,600 more on average than they did a year earlier. That increase came with a $21 rise in the average monthly payment to $698, while the average finance term remained near 66 months. For dealers, the higher average amount financed provided a larger base for finance reserve, which increased 3.9% to $902.

July by the Numbers

• Deals per Dealer: Average monthly deal count increased 3.1% from 110.54 in June to 113.93 in July. Compared with July 2025’s average of 117.44 deals, volume declined 3%.

• F&I PVR: F&I profit per vehicle retailed decreased by about $10 from June to $1,970. It was approximately $59 higher than in July 2025 and reached its highest July level since 2019.

• Front-End Gross per Deal: Front-end gross averaged $479 in July, down 10.7% from June and 18.7% from July 2025.

• Total Gross per Deal: Total gross averaged $2,449 in July, down 2.7% from June and 2% from July 2025.

• Products per Deal: Products per deal were unchanged from June at 1.52, down from 1.56 a year earlier.

• Total F&I Income per Dealer: Average monthly F&I income reached $224,448 in July, up 2.6% from June and essentially unchanged from the $224,384 recorded in July 2025.

F&I Product Penetration Highlights

• Vehicle Service Contracts: Penetration remained at 44%, unchanged from both June and July 2025.

• Guaranteed Asset Protection: GAP penetration held at 39% in July, unchanged from June and up one percentage point from a year earlier.

• Paint and Fabric Protection: Penetration was 19% in July, down one percentage point from both the prior month and a year earlier.

• Prepaid Maintenance: Penetration held at 16% in July, matching both the prior month and the year-earlier rate.

• Tire and Wheel: Penetration held at 10% in July, matching both the prior month and the year-earlier rate.

That’s The Complete Picture. Brought to you by StoneEagle. Your one true source for benchmarks and data that help drive success for your business.

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