Glossary
F&I (Finance & Insurance Office)
The dealer office that handles loan paperwork and sells add-on products.
F&I is where dealers earn 40-60% of their profit on a deal. Common upsells: extended warranties (200% marked up), GAP insurance (300% marked up), paint protection, fabric protection. Almost everything sold here can be bought cheaper outside.
Related terms
Dealer Markup (ADM)
A charge dealers add above MSRP, common during shortages or on high-demand vehicles.
Extended Warranty
A vehicle service contract that pays for certain repairs after the factory warranty expires.
GAP Insurance
Guaranteed Asset Protection — pays the difference between what you owe and your car's value if it's totaled.