Gen Z Expectations Are Changing. Are Dealers Ready?

Dealers built the relationship, so they should own the rewards.

The 80% satisfaction rate in CDK's 2025 F&I Shopper Study appears to be good news, but a closer look reveals that this number masks two critical problems. First, customer satisfaction doesn't equal dealer profitability. While buyers walk away satisfied, and dealers celebrate their scores, most of the long-term profit from F&I products flows upstream to administrators and reinsurers. The transaction ends. The commission clears. And the recurring F&I revenue that should fund dealership growth goes somewhere else entirely.

Second, that satisfaction rate crumbles with younger buyers. Over one-third of Gen Z customers describe their F&I experience as "overwhelming." As this generation becomes the core customer base, satisfaction is no longer enough. Dealers who can't simplify their processes while capturing more of the profit they generate will lose on both fronts.

Building Customer Loyalty While Capturing Dealer Profit

When customers have a positive F&I experience, 88% say they'll return to the same dealership. The F&I Manager shapes whether customers become one-time buyers or lifetime clients.

Buyers are purchasing more F&I products than ever — extended warranties are up 19%, maintenance plans up 8%. Yet, the opportunity isn’t in pushing more products per deal. Customers value protection and predictability, but they also value ease. That means the sweet spot lies in one to two well-matched F&I products that truly fit their needs, not wading through six or more products. The opportunity lies in selling the right products while capturing more of the profit generated.

Traditional F&I models create misalignment: dealers earn once at the point of sale while long-term profit flows upstream to traditional vendors. This structure incentivizes volume over fit, because there’s no upside in getting it right beyond the initial commission.

By considering new F&I cooperative models that share ongoing profitability, dealers convert one-time transactions into recurring income streams. Quarterly profit distributions create compounding advantages. The same sale that generates a commission today generates shared profit in subsequent quarters. This removes pressure to oversell because dealers win when customers win.

Through AutoTrust Protect, dealers earn profit at the point of sale and through quarterly distributions. That alignment shifts focus to customer fit, creating authentic trust and recurring income that stays with the dealer who earned it.

Ease Builds Loyalty and Enterprise Value

Younger buyers, especially Gen Z and younger Millennials, are the most likely to feel overwhelmed during the F&I process. Over one-third (34%) of Gen Z buyers described their experience that way. More than 70% of buyers who found the process easy said they would buy again from the same dealer. In contrast, only 16% of those who felt overwhelmed said the same.

For the next generation, ease equals loyalty. And loyalty builds enterprise value.

The data reveals a clear inflection point. Dealerships that can simplify the F&I experience without sacrificing comprehensiveness will capture the loyalty of the industry's most important emerging customer base.

The dealers winning this battle are investing in three core areas: structured training programs that build F&I confidence, data intelligence that personalizes the experience, and customer-first communication frameworks designed to remove complexity from product selection. When these elements align, ease becomes a measurable competitive advantage that compounds over time through repeat business and a stronger reputation.

Through the AutoTrust Dealer Alliance, members gain access to training, development, and data insights that simplify the F&I experience. With stronger presentations and customer-first education, every interaction becomes more professional, more confident, and more profitable for both dealer and customer.

Turning Insights Into Action

CDK's findings confirm what AutoTrust was built to solve. Increase dealer profitability while increasing customer satisfaction. With customized training that make the F&I process effortless, not overwhelming, repeat customers with recurring profitability is a winning strategy for dealers.

The next era of F&I won't be about doing more. It's about doing it smarter. With AutoTrust, dealers own the experience, earn the rewards, and win the future.

Own. Earn. Win.

Reference: https://www.cdkglobal.com/insights/new-report-shows-shifts-fi-trust

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