What “F&I” means
After you agree on a car, you meet the finance manager, sometimes called the business manager. Their job is to finalize the contract, arrange the loan and offer optional products: a service contract, GAP, tire and wheel, key replacement, paint and interior protection, theft deterrent and more.
Dealers often earn as much here as on the car itself, through product margins and dealer reserve on the rate. Prices on products are usually negotiable, and almost none are required to get a loan.
How it shows up at the dealership
Expect a menu with three or four packages, the most expensive first, priced per month. Products may be described as “required by the bank”; ask the lender, not the store, if in doubt.
Worked example · illustrative numbers, not a quote
A typical F&I menu, priced per month
| Service contract | + $49/mo |
| GAP | + $14/mo |
| Tire & wheel and key replacement | + $22/mo |
| “Platinum” package total | + $85/mo · about $6,100 over 72 months |
Priced as an example at 7% for 72 months. Products can also be bought elsewhere or later, sometimes for much less.
What to do
- Decide in advance which products, if any, you want, and what you’ll pay.
- Ask for each product’s total price, not the monthly amount.
- Read every page; ask for paper copies if the screen moves too fast.
What to say
“I’m not buying any products today. I’d like the contract with the price, tax, fees and my rate only. If I want a service contract, I’ll decide later.”
Also called: finance and insurance, finance office, business office, the box.