Issue No. 4 | April 28, 2026

Intelligence for F&I agents, administrators, and dealership finance professionals.

THE VEHICLE MARKET NUMBER: 45%

Only 45% of new car buyers purchase a VSC at the point of sale, per NADA industry data cited in Colonnade Advisors’ March 2026 whitepaper. At an average selling price of $48,205 and a Q4 monthly payment of $767, a meaningful share of buyers are already at the limit of what they can finance when the F&I presentation happens. That structural ceiling on desk attach rates remains in place.

What has changed is how the other 55% are being reached. That population leaves the dealership without coverage and becomes the DTC market, which is now growing at a 12.3% CAGR. With 296.5 million vehicles on U.S. roads and only 44% carrying any VSC coverage across the eligible fleet, the DTC channel is not working against the dealer. It is converting demand the desk could not close, at a later point in the ownership cycle.

THE F&I ANGLE

Colonnade identifies dealer remarketing as one of the five structural growth drivers in the DTC channel. Dealers with known customers and vehicle histories can offer coverage to buyers who declined at the original point of sale, at a lower acquisition cost than cold DTC outreach. The vehicle history is known and the relationship already exists.

That makes the 55% figure more than a data point. It is a qualified, targetable cohort. In a market where 58% of vehicle owners cannot absorb a $1,000 repair out of pocket and average loan terms have extended to 69 months, the case for coverage does not weaken after the customer leaves the lot. It strengthens.

The structural tailwinds driving DTC growth, including repair costs rising at more than twice the rate of general inflation, an aging fleet averaging 12.8 years, and consumers holding vehicles longer as replacement becomes less economically viable, all point toward sustained demand for protection products across the ownership lifecycle. The F&I desk captures the front end of that cycle. Remarketing captures the rest.

FROM THE BLOG

Colonnade’s March 2026 whitepaper outlines the structural drivers behind DTC VSC growth, including repair cost inflation, an aging vehicle fleet, and extended ownership cycles. This week’s post walks through those trends and how they are shaping demand across the channel.

THE DESK STAT

55%. That is the share of new car buyers who leave without VSC coverage. In a store doing 114 cars per salesperson, that is 63 households per person per year leaving with a vehicle and no coverage. How many of those customers are already in your system?

Until next Tuesday —

Reply here and tell me if remarketing to prior customers is part of your current strategy.