As dealerships face increasing pressure on profit margins, finance and insurance (F&I) departments are stepping up as key revenue drivers. Adam Marburger, CEO of Ascent Dealer Services and host of Training Camp, joins us on the latest episode of Inside Automotive to share insights from the 2025 NADA Show and outline the strategies dealerships need to adopt to stay competitive. Marburger discusses margin compression, the importance of ongoing F&I training, and the transformative role AI is playing in dealership operations.
The automotive industry remains resilient despite disruptions, as seen at NADA 2025, where attendance was reportedly down by 31% due to a major snowstorm. However, dealers who attended were focused on critical industry trends, particularly margin compression. Marburger noted that while new car sales are increasing, profit margins are tightening, putting additional pressure on F&I and fixed operations to compensate.
According to Marburger, while new car sales are increasing, dealership profits are not what they once were. “There’s more pressure on F&I this year than in a very long time,” he said, emphasizing that dealerships must lean on fixed operations and F&I to compensate for shrinking margins. He suggested that a strong F&I department should aim for $2,000 per vehicle, though luxury brands may push that number higher.
One of Marburger’s key recommendations for dealerships is a commitment to consistent training. He stressed that many F&I managers receive initial instruction but lack ongoing coaching, leading to stagnant performance. Marburger distinguished between trainers, who make occasional visits, and coaches, who maintain deep engagement with F&I professionals, ensuring their development aligns with dealership goals. His company employs a hands-on approach with in-store visits, virtual meetings, and one-on-one coaching sessions to ensure continuous improvement.
AI is another game-changer in the F&I space. Marburger revealed that he has partnered with a company using AI-powered tools to analyze F&I transactions in real time. This technology records audio from deals and provides detailed transcripts, allowing managers and coaches to assess what was said, identify missed opportunities, and refine their strategies.
Further, Marburger notes that many industry leaders at NADA were discussing AI’s impact, though its full application remains unclear. As dealers look ahead to the second quarter, Marburger urges them to focus on daily training, clear communication, and ensuring that their F&I partners are fully committed to their growth.
“There are stores aout there… There are dealers that are desperately seeking training from their providers, and they're not getting it. And it’s criminal.” – Adam Marburger.
