"Our 2025 report underscores a new phase for the automotive industry where market headwinds are beginning to take their toll," said Rick Kurtz, Senior Vice President and Chief Distribution Officer for Protective Asset Protection. "While F&I sales growth remains resilient for most, the rapid expansion we saw post-pandemic has given way to a more nuanced reality. Dealers are no longer just overcoming price objections; they are tasked with a fundamental re-education of consumers to demonstrate the vital value of F&I protection in a high-cost environment."

Key Findings from the 2025 Report The report reveals a significant shift in consumer perception, with dealers suggesting a "perceived lack of value" for F&I products more than doubling over the last year—a change driven largely by the rising total cost of vehicle ownership rather than the products themselves.

While digitalization remains a priority, the narrative has shifted from a race toward fully online transactions to a more effective omnichannel model.

• Omnichannel Reality: Over 63% of dealers now offer online research options while still requiring an in-person transaction to close the deal.
• Moderating Growth: While 62% of dealers still reported an increase in F&I product sales, the segment experiencing high growth (over 10%) plummeted from 31% in last year's report to just 11% this year.
• Consumer Priorities: Despite budget pressures, consumers continue to prioritize protection for major mechanical components, technology features, and protection against total loss.

To navigate these changes, the report identifies three critical pillars for dealer success in 2026: early-stage consumer education, product innovation tailored for affordability and used vehicles, and the strategic adoption of technology

"The affordability crisis has become the defining challenge for our industry," added Kurtz. "To maintain momentum, dealers are successfully pivoting toward a blend of early digital engagement and more flexible, value-driven product offerings that protect the customer's significant investment."

Technological Opportunities and Wealth-Building The 2025 report also explores the untapped potential of Artificial Intelligence (AI), noting that while only 8% of dealers are currently active users, AI represents a massive opportunity to personalize offerings and counter value-perception hurdles. Conversely, wealth-building programs have moved from a conceptual opportunity to a practical standard, with 58% of dealers now participating in programs like reinsurance to diversify income and ensure long-term stability.

Specialty Market Landscape Beyond the automotive market, the report provides specialized analysis of the marine, powersports, and RV sectors as they deal with a period of post-pandemic normalization. The marine market is currently in an adjustment phase characterized by a softened market and an 11.19% year-over-year decline in registrations. In contrast, the powersports sector is experiencing a significant market correction, with new unit sales declining by over 13% while the used market remains a bright spot, showing a 2.04% increase in sales. Similarly, the RV industry is undergoing an inventory correction but shows signs of stabilization, with 2025 wholesale shipments projected to reach a median of 337,000 units.

Across all three specialty segments, the report emphasizes the growing importance of F&I product adoption—such as GAP coverage and extended service contracts—to offset lower front-end margins and protect consumers against rising repair costs and negative equity. To download the report, click here.

ABOUT PROTECTIVE ASSET PROTECTION
Protective Asset Protection has been providing Finance & Insurance solutions for the automotive industry for more than 60 years. We proudly serve thousands of dealerships and financial institutions throughout the U.S. and Puerto Rico with innovative F&I products, training, wealth-building programs and technology. Our portfolio of vehicle protection plans, GAP (Guaranteed Asset Protection) coverage, limited warranties and ancillary products provide opportunities to generate revenue with products that help drive customer retention and satisfaction. Protective Asset Protection is part of the financial services holding company, Protective Life Corporation. For more information about Protective Asset Protection, visit protectiveassetprotection.com.