NFDA’s F&I Working Group has discussed reports that some manufacturers may be planning to introduce a new approach to selling GAP Insurance. Under the reported model, customers who did not purchase GAP Insurance at the point of sale could be contacted directly by the manufacturer around 90 days after vehicle delivery and offered the product separately. It is understood this could apply to both new and used vehicle customers, regardless of whether they took manufacturer finance, with implementation potentially beginning from July depending on individual manufacturer plans. The Working Group noted that dealers had not been consulted on the proposed approach before its reported rollout and raised a number of important questions. These included the potential impact on dealer revenues, the risk of confusing customers who may already have discussed or purchased GAP Insurance, and how customer data would be used to support direct contact. Members also discussed wider considerations around GDPR, Consumer Duty, customer outcomes and whether the proposed sales model aligns with FCA requirements. It was noted that some manufacturers may be targeting customer take-up rates to around 15%. Members are encouraged to speak with their manufacturer partners if this approach is introduced and to review their own GAP Insurance and ancillary product sales processes, governance arrangements and customer communications. NFDA will continue to monitor developments through the F&I Working Group and keep members updated as further information becomes available.