JM&A’s latest Dealership Performance and Profitability Trends report finds F&I gross profit per vehicle retailed, penetration rates and products per deal improved in the first quarter.

At the 1,700-plus U.S. dealerships JM&A tracks, F&I PVR dipped by 0.4% from December to January, then improved by 2.3% in February and ticked down by 0.1% in March. That puts F&I income “well ahead” of Q1 2025, which started with an 0.5% decrease in January before registering consecutive 1.6% gains.

Penetration rates for service contracts and GAP and products per deal all improved on a year-over-year basis.

Front-end gross is trending upward after improving by 8% in March. But analysts say front PVR remains significantly lower than in Q1 2025.

“As front‑end margins continue to face pressure, the strength and stability of F&I performance remain critical to overall dealership profitability,” the report states. “In a market shaped by ongoing affordability constraints and evolving buyer behavior, F&I continues to serve as a key lever, helping to offset tighter vehicle margins while supporting a customer‑focused sales experience.”

Read the full report at JM&A