Author: Adam Ouart
Date: 8/12/2026
Powersports dealers have spent the last several years navigating inventory swings, economic uncertainty, changing consumer behavior, and margin compression. While many stores have adapted by focusing on operational efficiency and inventory management, a growing challenge continues to limit profitability: customers are making F&I decisions long before they ever sit down with F&I.
This shift is creating one of the biggest obstacles to increasing F&I product penetration in today’s powersports environment.
Industry data shows consumers are researching vehicles, financing options, ownership costs, and protection products online before they visit a dealership. At the same time, dealerships remain heavily dependent on F&I income to support overall profitability as front-end margins continue to tighten. External industry benchmarks indicate that powersports dealers are increasingly relying on F&I performance to drive overall revenue growth and profitability.
The question is no longer whether customers value protection products. The question is whether dealers are engaging customers early enough to help them understand that value.
Today’s powersports customer behaves differently than buyers did just a few years ago.
They arrive informed. They’ve compared prices online. They’ve reviewed competitor offerings and financing options. Many have already formed an opinion about warranties, maintenance programs, GAP protection, or service contracts before they enter the showroom.
The challenge is that the customer’s first exposure to those products might come from sources with misinformation. By the time the F&I presentation begins, some customers have already decided that protection products are “extras” rather than valuable ownership tools.
This creates an uphill battle for F&I managers. Instead of presenting solutions that enhance the ownership experience, they are forced to overcome misconceptions that formed days or even weeks earlier.
Many dealerships facing penetration challenges immediately look at pricing, product offerings, or compensation plans. While those factors matter, the root cause is often much simpler. The F&I conversation might be starting too late with the customer.
When protection products are introduced only during the final stages of the transaction, customers frequently perceive them as an unexpected expense.
Contrast that with dealerships that begin educating buyers earlier in the sales process. Successful dealers are integrating protection discussions into the entire ownership journey. They are helping customers understand rising repair costs, long-term ownership risks, maintenance requirements, technology replacement expenses, and the financial impact of unexpected repairs.
When customers understand these realities before financing discussions begin, the F&I office becomes a place where solutions are selected—not where products are sold.
This customer-focused approach aligns with EFG content emphasizing early education, consistent menu presentations, transparency, and needs-based selling. Customers who understand the value of protection products earlier in the process are more likely to make confident purchasing decisions.
Another major issue facing powersports dealerships is the disconnect between the online shopping experience and the in-store buying experience.
Customers increasingly expect transparency throughout the purchase process. Yet many dealerships still wait until paperwork begins to discuss F&I solutions. This creates a customer experience gap.
A buyer can find the vehicle they want online, review financing options, compare accessories, and calculate payments—but often receives little education about the products designed to protect that investment.
As consumer expectations continue evolving, this disconnect becomes more costly. Dealerships that incorporate ownership protection messaging into websites, digital communications, and sales conversations create familiarity before customers ever reach the F&I office. Familiarity builds trust, and trust drives penetration.
The encouraging news is that this challenge is solvable. Unlike interest rates, inventory levels, or consumer confidence, dealer teams can directly influence customer conversations.
EFG’s F&I training resources are optimized for powersports dealers, delivering one of the most powerful tools available for defending profitability in challenging market conditions. Dealers cannot control market pressures, but they can control how effectively their teams communicate customer value and ownership benefits.
Our consultative approach equips dealership teams to:
When every team member understands their role in the customer education process, F&I penetration becomes a dealership-wide initiative rather than an F&I department responsibility.
Many powersports dealers continue searching for ways to offset shrinking margins and improve profitability. The answer may not be finding another revenue source. It may be fully maximizing the opportunities already sitting inside every transaction.
Every unit sale creates an opportunity to improve the customer ownership experience through the right protection products. But those opportunities are only realized when dealerships move beyond transactional selling and embrace customer education as a core business strategy.
The dealers that win in today’s environment will not be those with the most aggressive presentations. They will be the ones that build trust first, educate early, and position F&I products as an essential part of ownership rather than an optional add-on.
Because when customers understand the value before they enter the F&I office, penetration does not have to be forced—it becomes the natural outcome of a better buying experience.
Key Takeaway for Dealer Principals: If your F&I penetration has plateaued, evaluate where customer education begins. The biggest profit opportunity in powersports today may not be a new product—it may be starting the F&I conversation sooner.
