Finance and insurance (F&I) managers make very good money but also have one of the most demanding roles within any dealership. Business success and customer satisfaction depend on the expertise and skills of F&I managers and the entire department. Your idea is that with great responsibilities come the higher salaries, but did you ever wonder how much F&I managers earn? You can find out more about their salary below.
F&I average salaries
Average salaries for managers working in F&I departments vary, and although one would easily assume that highest-paid positions are for people working in New York City and other metropolitan areas, the reality is different.
According to the National Automobile Dealers Association’s 2016 Dealership Workforce Study regions with the highest F&I manager compensations were Texas, Oklahoma, Louisiana, and Arkansas. The average compensation for F&I managers in these states was $154,071 which marked a 2% increase compared to a year before.
The study reported that the lowest average compensation rate of $119,334 was recorded in Illinois, Indiana, Michigan, Ohio, and Wisconsin. Surprisingly, states with the lowest F&I manager salaries were better than states with highest salaries in one thing – more dealerships handed out company-provided cars to their managers.
About 13% of all F&I managers earned more than $200,000 in 2015. Other reports show that finance and insurance managers usually make $106,658 a year while car sales executives report $68,456.
It is considered that $57k is a low salary for F&I manager while the average base pay in this industry is $79,135. The average additional cash compensation is $14,282, and it usually ranges from as low as $5204 to $37,556.
If you have ever wondered how much dealerships earn on extended warranties and other add-ons the average sum is $1600 per car for the best practitioners. The most significant deal of F&I profits comes from the sale of service contracts, tire and wheel protection, pre-paid maintenance, GAP, just to name a few.
F&I pay plan
Well-crafted pay plans compensate F&I managers based on their productivity. In order for the plan to work for both a dealership and an F&I manager, it needs to motivate, reinforce commitment to customer satisfaction, and allow managers to grow and get rewarded for hard work. Good pay plan should have characteristics such as simplicity, allowing managers to earn more money if they generate profit for the dealership, and it needs to be fair. Aspiring F&I managers need to consider these factors before agreeing to a payment plan within a dealership or if they’re looking for a job in this industry.
Finance managers are well-paid regardless of the industry (auto or RV), but the height of salary varies. F&I managers can start with a relatively lower salary and work they way up, depending on their location, pay plan, and other factors.