The six largest public auto retailers ratcheted up their average finance and insurance income per vehicle during the second quarter.

The dealership groups' increase in F&I income helped overall earnings during a difficult quarter for vehicle sales. The revenues of some groups rose in the three months that ended June 30, although unit sales declined.

The retailers attribute the higher per-unit F&I income to longer loan terms and enhanced training of dealership F&I managers. The training concentrates on selling a full menu of F&I products and services.

Asbury Automotive Group surpassed $1,000 a vehicle in F&I income for the first time in the second quarter.

"We think that is sustainable," Charlie Robinson, Asbury's F&I vice president, told Automotive News. "We renegotiated a number of vendor contracts so that we are buying products cheaper."

Robinson said the trend toward 72-month vehicle loans has generated increases in sales of service contracts and guaranteed automotive protection, or GAP, coverage.

Customers who keep their vehicles longer want to extend warranty coverage, Robinson said. They buy GAP coverage because they have little equity in their vehicles, he added. GAP pays the difference between the loan balance and insurance payment if a vehicle is wrecked or stolen.

"GAP penetration is up a couple of percentage points," Robinson said. "The longer term gives (buyers) a bigger loan balance. It's a little scary."

Sid DeBoer, CEO of Lithia Motors Inc., cites "a renewed effort in training" to explain the rising income. Lithia typically has the highest F&I income per vehicle among the U.S. public dealership groups.

"We do all our own training in-house," DeBoer says. The company's F&I managers "do a full menu presentation to every customer."

Scott Smith, president of Sonic Automotive Inc., compares his company's F&I approach to that of a fast-food restaurant. Sonic reported the largest second-quarter increase in F&I income per vehicle among the public groups.

"It's very simple, kind of like asking, 'Would you like fries with that?' " Smith says. "Then following up with, 'Would you like to supersize that for 39 cents more?' to all of our clients. The secret sauce is in the menu presentation and our training."