How to Raise Your PRU in One Simple Step

How to Raise Your PRU in One Simple Step

Every F&I department has metrics it must meet every month and in some cases, every day. Penetration levels per product. CSI scores. Chargeback rate.

The big one? PRU. Or…PVR. Call it whatever you like but that number is the single most important number to watch for every dealer, franchise or independent, when it comes to F&I performance. If that number is low, you really have NO F&I department.

Many factors go into the PRU (we’re going to stick with this acronym for now). How skilled are the F&I managers at key closing skills? Do they ask the right probing questions? Are they masters of the consultative sale? Are they matching the right product to the right buyer?

PRU or profit per retail unit is the key indicator of how much you are holding on the deal in pure profit. But if you are reading this and work in the F&I department, you already know this.

But ask yourself this question? Could your PRU grow as a result of something OTHER than better sales skills in the F&I office?


When was the last time your store took a look at the actual cost of your F&I products? Have you locked in with an administrator that has been there so long that you stopped looking at the costs long ago and just kept them because, well, they have always been with you? Probably.

Change is Good…Especially for the Bottom Line

Two things go into PRU, finance/lease reserve and profit on aftermarket products like GAP and VSC’s. Just like the bank gives you a ‘buy rate’ or cost for the rate, your aftermarket administrator has the same cost for their products. 

The argument can be made, therefore, that if you choose an administrator that offers a lower cost for VSC, GAP, tire & wheel, etc. you can effortlessly raise your dealership’s PRU just by making that one change.

It’s not to say, though, that quality training for the F&I managers is not helpful to raise the PRU. It can but that process can take some time.

Hiring experienced and highly successful F&I managers can raise PRU. But that takes time to find and vet them properly to make sure they are a good ‘fit’ for your store.

You can add more products to the menu and hope that raises PRU. But that is not always a positive thing…too many choices can overwhelm your buyer in a situation where they already don’t want to sit in F&I too long.

See the pattern here? Implementing any of those changes will not give you the immediate lift to PRU you need in an uncertain market like we have now dealing with COVID-19.

By changing administrators and finding one that has all the industry-leading experience coupled with solid financial backing, you can quickly and seamlessly raise that PRU by offering products with a lower cost. And that can be done without sacrificing the quality of those products.

So Why Wouldn’t You?

Why would a dealer continue to pay for higher cost back-end products at the expense of a lower PRU? No easy answer. Some dealers have entrenched relationships with their providers that may span a decade or more. Understandable…but not in tune with today’s market. 

F&I is under more pressure than ever to raise PRU and buoy the profits of dealerships that are struggling to make up for lost revenue in 2020 due to COVID-19 shutdowns. Dealerships have to take a hard look at ALL of their fixed costs to see what can be changed to bring in more money.

The easiest place to find that money is in F&I but only if your store has a reasonable fixed cost per product.

TruWarranty is ready to step up and be that solution. We understand long-term relationships and we value our own in the market as well. We get it. But we also know that it makes no sense to shortchange your PRU for the sake of loyalty or convenience when there is an alternative like us in the market who is ready to help you make more NOW.

Click here to reach out for more information about how we can help your store switch over to our HUGE product line for a smaller back-end cost to you. Watch those PRU’s grow…not tomorrow, not next month…now.