Ancillary products are additional F&I products beyond vehicle service contracts (VSCs) and GAP insurance, such as tire-and-wheel protection, key replacement, paintless dent repair, and appearance packages.
In the F&I office, ancillary products round out the menu and give customers more ways to protect their vehicle purchase. While VSCs and GAP insurance tend to be the highest-ticket items, ancillary products fill a critical role for independent used car dealerships because they are typically lower cost, carry strong margins, and face less customer resistance during the presentation.
For independent dealers, a well-structured F&I menu that includes ancillary products can meaningfully increase per-vehicle retail (PVR) without adding friction to the deal. Products like tire-and-wheel protection, windshield coverage, and key replacement are easy for customers to understand and often priced at a point that makes them simple add-ons. When bundled together in a package, these products can create a compelling value proposition that lifts overall F&I income per deal.
Ancillary products also play an important role in reinsurance structures. Because they tend to have lower claim frequency and strong premium-to-claims ratios, they can contribute to healthier reserves and better underwriting performance inside a dealer-owned reinsurance entity. Dealers who are strategic about their ancillary product selection can build a balanced book that performs well over time.
Find out how the right mix of ancillary products can increase your per-deal profit and strengthen your reinsurance reserves.