The car buying process can be overwhelming, especially if it’s your first time. There are many things to consider – from choosing the right car to selecting the best financing option. And then there’s the F&I menu. There are a lot of things that you should know about the F&I menu.
Most people need to learn more about this particular aspect of car buying and selling. However, I’m going to break down all the necessary information you’ll need to make any purchase easier for yourself. So, let’s take a look at what we can expect from the F&I menu.
What is the F&I menu?
The F&I menu is a document that lists the different finance and insurance products that are available to you. It’s presented to you after you’ve chosen the car you want to buy and are ready to start the financing process.
What should you know about F&I Menu?
When you’re in the market for a new car, it’s essential if you’d like to add on a few extra features, such as an extended warranty or gap insurance. That is the F&I (finance and insurance) menu, and it’s important to know what’s available before you make any decisions.
However, the F&I menu is typically presented after you’ve negotiated the price of the car and are ready to sign the sales contract. That is when the dealership will try to make money by selling you additional products.
In addition, some of the most common items on the F&I menu include extended warranties, gap insurance, and paint/fabric protection.
Here’s what you need to know about the F&I menu:
What are the different types of products on the F&I menu?
There are a few different types of products that you’ll find on the F&I menu, including:
Extended warranties: An extended warranty is a service contract that helps cover the cost of repairs or replacements after the manufacturer’s warranty has expired.
Gap insurance: Gap insurance covers the difference between the amount you owe on your car loan and the actual value of your car if it’s totaled in an accident or stolen.
Vehicle service contracts: A vehicle service contract is an extended warranty that can help cover the cost of repairs or replacements for specific parts of your car.
Paint and fabric protection: Paint, and fabric protection helps guard against stains, fading, and other damage.
What are the benefits of each type of product?
Each type of product on the F&I menu offers different benefits. Here’s a closer look at the benefits of each type of product:
Extended warranties:
An extended warranty is a type of service contract you can purchase for additional costs. It provides coverage for repairs or replacements beyond the standard warranty period.
Benefits:
- It can save you money on repairs
- Give you peace of mind
- Can be transferred to a new owner if you sell the car
Gap insurance:
Gap insurance is a type of insurance that covers the difference between what you owe on your car loan and the car’s actual cash value in the event of a total loss.
Benefits:
- It can save you money if your car is totaled
- Give you peace of mind
- It included in your car insurance policy
Vehicle service contracts:
A vehicle service contract is an extended warranty that you can purchase for an additional cost. It provides coverage for repairs or replacements beyond the standard warranty period.
Benefits:
- Save your money on repairs
- Can be transferred to a new owner if you sell the car
- Can be purchased for used cars
Tire and wheel protection:
Tire and wheel protection is a type of insurance that covers the cost of repairs or replacements for your tires and wheels.
Benefits:
- It can save you money on repairs
- It included in your car insurance policy
Paint and fabric protection:
Paint and fabric protection is insurance that covers the cost of repairs or replacements for your paint or upholstery.
Benefits:
- It can save you money on repairs
- It included in your car insurance policy
What should you consider before buying an F&I product?
Before you buy an F&I product, there are a few things you should consider, such as:
Budget: It’s important to consider how much you can afford to spend on an F&I product.
Needs: You should only buy an F&I product if you feel like you need it. Consider your driving habits and the likelihood of needing repairs before purchasing an extended warranty or gap insurance.
Coverage: Make sure you understand the ultimate coverage under the product you’re considering. Read the fine print, so you know what you’re getting.
The bottom line
The F&I menu is a document that lists the different finance and insurance products that are available to you. Understanding each product and how it can benefit you is important before deciding. Consider your budget, needs, and coverage before buying an F&I product.
