F&I products, also known as Finance and Insurance products, are additional products and services that are often offered to customers when they are purchasing a vehicle, typically through a dealership.
These products are designed to provide financial protection, enhance the ownership experience, and address various risks associated with owning and financing a vehicle.
Extended Warranty or Vehicle Service Contracts
These contracts extend the manufacturer’s warranty and cover the cost of certain repairs and maintenance beyond the original warranty period. They provide peace of mind to vehicle owners by reducing the financial burden of unexpected repairs.
Guaranteed Asset Protection (GAP) insurance covers the difference between the actual cash value of a vehicle and the remaining balance on a loan or lease in the event the vehicle is totaled or stolen. It helps prevent the owner from owing money on a vehicle they no longer possess.
Credit Life and Disability Insurance
These insurance policies can help cover loan payments in the event of the borrower’s death or disability. They ensure that the loan doesn’t become a financial burden for the borrower’s family in such situations.
Tire and Wheel Protection
This coverage typically includes repair or replacement of damaged tires and wheels due to road hazards like potholes or debris. It can save owners from expensive repair or replacement costs.
Paint and Fabric Protection
These products aim to protect the vehicle’s exterior paint and interior fabric from damage caused by environmental factors, such as UV rays, bird droppings, and stains.
Anti-theft products and services can help deter theft and assist in the recovery of stolen vehicles. They may include VIN etching, tracking systems, and vehicle immobilization devices.
Key Replacement Insurance
This insurance covers the cost of replacing lost or stolen vehicle keys, including electronic key fobs, which can be expensive to replace.
This may include treatments such as rustproofing, undercoating, and paint sealants to protect the vehicle’s appearance and resale value.
Lease Wear and Tear Coverage
For leased vehicles, this coverage can help avoid additional charges at the end of the lease term by covering certain wear and tear items that may exceed the allowable limits specified in the lease agreement.
Dealerships typically offer F&I products as part of the vehicle sales process. Customers can choose to purchase these products to tailor their ownership experience and provide additional protection against unexpected expenses. However, it’s important for consumers to carefully consider whether these products are necessary for their specific situation and to understand the terms, costs, and benefits associated with each F&I product before making a decision.