Rising costs are reshaping how customers approach car buying, and F&I leaders must adjust their strategies to keep pace. On the latest episode of F&I Today, Paul Brown, Vice President of Ascent Dealer Services, said affordability pressure are not reducing the need for protection products. Instead, it is making them more essential.
Customers entering dealerships today are taking on higher monthly payments, often increasing by $80 to $150 compared to their previous vehicles. Combined with broader economic pressures, including inflation and rising living expenses, these increases are making buyers more hesitant to commit to additional costs in the F&I office.
Read the credit bureau, not just the score
According to Brown, the key to overcoming that resistance lies in a better understanding of how customers make financial decisions. Rather than relying solely on credit scores, Brown encourages F&I managers to analyze the full credit bureau to identify behavioral patterns.
Payment histories, loan structures and past financing decisions reveal what customers are comfortable with and how they are likely to respond to new financial commitments, says Brown.
By reviewing prior auto loans, dealers can track how a customer’s payments have evolved over time and gauge their tolerance for increases. Loan terms and financed amounts can also help managers infer interest rates and build a more complete financial profile.
“In the past two years, credit card balances for customers across the country, nationally, have gone up 24%.”
Beyond installment loans, Brown emphasized the importance of evaluating broader financial signals. National credit card balances have risen 24% over the past two years, a trend he said reflects how heavily consumers are leaning on revolving debt to manage everyday expenses. High balances relative to available credit, paired with low checking and savings balances, signal limited liquidity and help F&I managers anticipate how a customer will respond to additional financial commitments.
Position protection products
Customers with minimal savings are especially vulnerable to unexpected repair costs, making protection products more relevant than ever. Brown said dealers should frame these products as tools that convert unpredictable expenses into fixed, manageable payments rather than presenting them as add-on costs.
To improve product acceptance, Brown encourages dealers to rethink how they present pricing. He asserts that many customers budget according to how they are paid, whether weekly, biweekly or monthly. Reframing costs to match those habits can make a meaningful difference.
Presenting a $100 monthly expense as $25 per week, or breaking it down to a daily amount, often makes the commitment feel far more approachable. A service contract, he noted, can be presented as roughly $2 per day, less than a bottle of water, for complete coverage on a $60,000 vehicle.
Structure deals
Brown recommends presenting a 20% down payment request as standard bank guidance on every transaction, then using the customer’s response to guide the conversation. In most cases, buyers show greater flexibility with monthly payments than with large upfront commitments, and identifying that preference early helps F&I managers structure deals more effectively.
Simplifying the value proposition is equally important. Beyond basic coverage, Brown notes that service contracts carry trade-in advantages worth communicating. Customers who used a service contract to maintain their vehicle can negotiate from a stronger position at trade-in, and in some cases, remaining contract coverage can transfer to the dealership to address any outstanding repairs.
Ultimately, Brown said F&I success in today’s market depends on moving away from a transactional mindset toward a consultative approach. Dealers who look past the credit score, ask better questions early and communicate in terms that match how customers actually live and budget will be better positioned to close deals and improve customer satisfaction, even as economic pressures persist.
