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StoneEagle: F&I Holds Strong as Dealers Navigate Q1 Normalization

First quarter of 2026 reflected a return to normal seasonal buying patterns after tariff concerns accelerated vehicle purchases in early 2025.


RICHARDSON, Texas, May 21, 2026 — StoneEagle, a provider of automotive technology and data intelligence solutions designed to drive F&I, sales, and service performance, today announced the release of its first-quarter 2026 StoneEagleDATA F&I Benchmark Report, providing The Complete Picture of deal performance across more than half of the automotive retail market.


The first quarter of 2026 extended one of the strongest F&I PVR performance stretches in StoneEagleDATA, with F&I offices averaging $1,986 in F&I profit per vehicle retailed (PVR) — up nearly 8% year over year and roughly 50% above 2019 levels. Stronger per-deal performance helped push average monthly F&I income per dealer 3% above Q1 2025 levels, reaching $211,266. This was despite 4.4% fewer deals per dealer than a year ago, as retail activity returned to more typical seasonal patterns.


“The first quarter showed that dealership F&I performance remained historically strong even as retail activity settled back into more traditional seasonal patterns,” said StoneEagle CEO Cindy Allen. “Even with fewer deals moving through the average dealership, F&I income still increased year over year as dealers relied more heavily on F&I to help balance affordability pressure and lower front-end gross, reinforcing F&I’s role as the foundation of stability and profitability for dealerships.”


First Quarter 2026 Highlights

Affordability pressures continued compounding inside the first quarter’s average car deal, with nearly one in four financed purchases stretched to 84 months or longer. The average amount of negative equity carried into new-vehicle purchases rose 36% year over year to $8,728, while average down payments declined 14% to $3,993. Together, the trends showed how the average vehicle transaction is carrying substantially more weight than it did just a few years ago.


The pressure continued shaping dealership profitability through the first quarter, with average front-end gross falling 21% from January 2025 to $539 in March 2026. That’s still roughly 33% above 2019 levels but more than 50% below the post-COVID peak reached in 2022.


Key Q1 2026 performance metrics include:

  • F&I profit per vehicle retailed (PVR): Averaged $1,986 per deal in Q1 2026, up from $1,841 in Q1 2025.

  • Average products per deal (PPD): Averaged 1.57 products per deal, up from 1.54 in Q1 2025.

  • Average monthly total F&I income per dealer: Averaged $211,266 in Q1 2026, up from $205,175 in Q1 2025.

  • Average deal count per dealer: Averaged 106 deals per dealer, down from 111 in Q1 2025.

  • Average front-end gross per deal: Averaged $539 in March 2026, down from recent post-COVID highs but still 33% above January 2019 levels.


Ancillary Products Gain Share

Vehicle service contracts (VSC) and guaranteed asset protection (GAP) continued anchoring F&I performance in the first quarter, while ancillary products expanded their contribution to dealership profitability. StoneEagleDATA benchmarks showed ancillary products accounting for roughly one-third of total F&I product revenue, up roughly 19% since 2020.

  • VSC: Maintained a 45% penetration rate in Q1 2026, up from 44% in Q1 2025 and nearly 5% since 2022.

  • GAP: Maintained an approximately 40% penetration rate in Q1 2026, up from 38% in Q1 2025 and more than 6% since 2022.

  • Paint-and-fabric protection: Reached a nearly 20% penetration rate in Q1 2026, up from 19% a year earlier and nearly 76% above 2020 levels.

  • Prepaid maintenance: Held above a 16% penetration rate in Q1 2026, consistent with Q1 2025 and up nearly 11% since 2020.

  • Tire-and-wheel protection: Maintained an approximately 10% penetration rate in Q1 2026, in line with Q1 2025 and up roughly 9% since 2020.

  • Bundled product packages: Reached a nearly 7% penetration rate in Q1 2026, with penetration increasing more than 94% since 2020.


“As consumers finance larger balances across longer ownership cycles, products tied to vehicle protection and negative-equity exposure are becoming a more important part of the F&I conversation,” said StoneEagle Chief Product Officer Colin Snyder. “VSC and GAP continue anchoring dealership F&I performance, while broader product attachment trends reflect how financing conditions are reshaping the overall product mix.”

 

About StoneEagle

StoneEagle is the automotive industry’s premier source for data intelligence and technology innovation, delivering insights and connected solutions that power smarter decisions and better outcomes across F&I, sales, and service. Backed by more than 35 years of proven expertise, StoneEagle continues to redefine how the industry leverages data to streamline operations, elevate customer experiences, and accelerate growth. StoneEagle — Powering Your Innovation.

 
 
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