Trading Profit Today for Loyalty Tomorrow

by Jamie LaReau
for Automotive News
Sept 2015

Dealer David Johnson likes profit. But he truly values customer loyalty. 

That's why for nearly 10 years Johnson recoiled from the hard-sell tactics commonly used in finance and insurance and accepted F&I results that were slightly below where they should have been. 

Johnson understood that "the odds of bringing someone back in as a loyal, long-term customer means you might sacrifice some short-term profit," said Greg Kos-tern, business director for Johnson Automotive in Raleigh, N.C. 

But when Kostern proposed trying a technique called conversational selling across the group's nine stores late last year, Johnson agreed. Now F&I products are described to customers first and the menu shown later, Kostern said. 

Becoming the Ideal F&I Manager

by Gerry Gould
for f&i showroom magazine
December 2011

Most F&I managers fall into one of three categories: those who need an advantage, those who take advantage and those who create an advantage. Most of us started out in the box as the first type. We needed a little boost or maybe even a presold product every now and then. But it’s what we did during that initial phase that determined our course in this business. So which type of manager do you think you are today?

Dealers Urged to Polish Fair Lending Practices as CFPB Rule Looms

by Hannah Lutz

for AutomotiveNews

August 2015

Dealers, learn your lenders’ fair lending policies and polish your own.

That’s legal experts’ advice to retailers looking to prepare for the Consumer Financial Protection Bureau’s final larger participant rule, which takes effect Aug. 31.

10 Tips to Maximize Your F&I Performance

by Don Geroni
AE-emagizine
October 2014

If your F&I performance is lagging, have you ever wondered why? Have you ever wondered what you are doing differently than the high performers? Do you use excuses to defend your less than stellar performance? If so, take a look at the following tips and if you aren’t practicing them, give them a try and watch your performance improve.

Creative License

by Rick McCormick
F&I and Showroom Magazine
August 2015

Everyone is looking for that magic trait that will guarantee success. But successful F&I professionals know that consistently producing at high levels requires a combination of great people skills, the ability to think on your feet, a good sense of humor and effective closing skills that move customers to buy. But there’s another trait that top performers have: creativity.

See, a creative F&I manager takes foundational truths and seeks ways to use them to make customers comfortable and F&I products come alive. These are individuals who embrace change, take risks, aggressively research the many facets of their job and are willing to unlearn old-school methods. If that doesn’t describe you, here are a few tips on how to change that:

How to Keep the F and I Office out of Trouble

by Jamie LaReau
for Automotive News
August 2015

Dealers' goals and those of finance and insurance managers tend to be at odds. 

Dealers seek high customer satisfaction and loyalty and long-term revenue. F&I managers are inclined to focus on short-term profits and maximizing opportunities to generate them. 

If F&I managers prioritize their aims instead of dealers', it could lead to serious problems in the F&I office, such as a slew of chargebacks on F&I products or even illegal practices, industry insiders say. To minimize that risk and ensure customers have a positive F&I experience, they say, dealers should: 

•  Design a process that prevents bad F&I practices and enforces consequences. 

•  Boost F&I education and training. 

• Scout top-notch hires who manage their own credit well.

•  Devise pay plans that shift the focus from commissions to customer satisfaction. 

New vs Used Customers - Identifying Their F&I Hot Button

by Rick McCormick
Agent Entrepreneur
March 4, 2015

We have seen major shifts in customer buying behavior since the great recession. In fact we have realistically seen more changes in their buying habits in the last five years than we have in the previous 25! One of the major shifts has been a record in the length of the average loan with a 27.62% increase of new car buyers going 73+ months during the first quarter of 2014 as compared to the same period in 2013. The used car buyer saw an increase of 25.73%. Consumers have spoken loud and clear as they recovery personally from a downturn in income and/or confidence in today’s economy. They still love their cars and are willing to stretch out their loans to have the vehicle they want. 

Time for F&I to Join Rest of Automotive World

by Brian Reed
WardsAuto
July 22, 2015

Think for a moment about how the typical car shopper goes about finding a vehicle in 2015.

They see a sleek commercial from a manufacturer – maybe on television, but almost as likely as a lead-in to watching Netflix online.

Next, they hit a third-party or dealer website, read reviews and compare features and pricing with similar models. Then, they figure out what their current trade-in is worth, check interest rates and calculate their monthly payment.

They walk into the dealership well-educated and with confidence. And, more often than not, they will sign on the dotted line to buy or lease a new vehicle.

But, a key element is missing from the online shopping experience, and it’s one that represents a significant opportunity for F&I departments. According to a recent study of 500 car shoppers by MakeMyDeal, 63% of customers would be more likely to purchase F&I products if they had the option to learn about them before finalizing their vehicle purchase.

Marketing and Selling Cars to Milennials

by Erik Radie

for DrivingSales.com

June 24, 2015

99 percent of consumers expect their car shopping experience to be a ‘hassle’ (according to the recently completed Consumer Experience survey by Driving Sales). That’s pretty clear systemic incitement, pointing to the fact that nearly every step in the purchase funnel has room for improvement including how we market to consumers. In the spirit of eating this elephant one bite at a time, let’s focus on how we can shape our marketing to face the now largest segment of our population, the Millennials. Born from 1981-1997, they will overtake the Baby Boomers this year in total population and range in age from 18-34. Attracting and retaining this population of consumers will pave the way for a successful future for those willing to address them on their terms. Here are 3 relatively simple changes that will positively impact the attraction of the Millennial audience. 

What's Next in Credit Compliance

by John Stevens

Wards Auto
June 22, 2015

As the Consumer Financial Protection Bureau continues to increase pressure on compliance regulation, the market is wondering what will come next. Will more lenders implement flat rates? Will the CFPB find a way to extend its influence into the F&I space? Will Congress step in and impose restrictions on the CFPB?

With so much up in the air, both dealerships and lenders are waiting to see what is in store.

Excel-erate the Experience

by Gerry Gould
June 2015
F&I  and Showroom

There’s no doubt that the greatest obstacle to success in F&I and CSI is the time it takes to complete the F&I portion of the car-buying process. From relying on technology to experimenting with hybrid sales/F&I managers, there have been endless suggestions, discussions and debates on how to meet this ongoing challenge.

After all the trial and error, the end result is often the same: Customers still complain that it takes too long to complete a vehicle purchase. In fact, according to a 2014 customer-experience study conducted by Autotrader, customers spend an average of 61 minutes in the F&I office — more than two-thirds of the ideal 90-minute transaction time consumers desire. But the blame shouldn’t fall squarely on F&I, as the sales team can disrupt the flow to F&I by failing to follow a specific set of steps that lead to a successful handoff.

Keeping Top Performers

by John Stephensfor Wards AutoMay 29, 2015

Dealership employment grew 3.4% and topped 1 million people last year, with median weekly earnings of $976, according to the National Automobile Dealers Assn.’s 2014 Dealership Workforce Industry Report. However, turnover is still taking a toll on dealership overhead, with an average rate of 36%.

So, how do you address dealership turnover? What can you do to avoid losing employees?

Being Productive at Work? It's a Key to Your Success

by Joe Verde
ae-Emagazine.com
May 6, 2015

Great question, because being more productive is your key to success. There are primarily two things that control your productivity at work each day:

1. Your activities (what you do)
2. Your skills (how well you do them)

Your daily goal is to stay busy doing productive things your entire shift. Continuous activity keeps your momentum going, and that means more success.

Conquering the Curveball

by Rick McCormick
F&I and Showroom
April 2015

Growing up in the same town as Los Angeles Dodgers Pitching Coach Rick Honeycutt, whose assortment of breaking balls made him one of the best middle relief pitchers in Major League Baseball, I know hitting the curveball is one of the toughest things to do. About the only way you can develop any consistency hitting “old Uncle Charlie” is to practice your technique and study the pitcher’s habits.

F&I's Core Principle

by Rick McCormick
F&I Showroom
January 2015

After nine years of traveling and working with F&I managers from coast to coast, I have discovered that top performers share a common characteristic. And it’s not charisma, personality, talent or people skills that set them apart.

The answer actually has to do with what motivates top performs to continue selling, even after the customer utters “No” several times. See, they committed to a core principle on which they operate, one that affects how and, more importantly, why they do their job. It’s what determines their level of success.

In the F&I office, there are only two options: profits or a defined purpose to genuinely help customers. Yes, everyone wants to increase profits and grow their income. However, the driving force behind how and why we do it dramatically affects our level of success in three distinct areas. Let’s review each one.

What Slump?

by Marv Eleazer
for F&I Showroom
March 2015

In response to a reporter’s question about a hitless streak, Yogi Berra, the oft-quoted New York Yankees legend, once said, “Slump? I ain’t in no slump. I just ain’t hitting.” Yes, Berra was known more for his one-liners than his athletic prowess, but you have to wonder if the Hall of Fame catcher just didn’t want to admit he was in a slump. Having suffered through more than a few slumps myself — some so bad I couldn’t give my products away — I’d understand if he did.

The CFPB's Encroachment in the F&I World

by Brian Casey
AgentEntrepreneur
February 4, 2015

When Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, both the auto dealer and insurance industries were at the table to be sure they were carved out from the jurisdiction of the now powerful Consumer Financial Protection Bureau, better known as the CFPB. As is frequently the case, however, legislative exemptions are usually not wholesale in nature, and later interpretations of law can whittle them back from their ostensibly intended purposes. This may indeed be the fate for some insurance and insurance-like products sold to consumers who purchase and finance such products in connection with the purchase or lease of an automobile.

Passing the Compliance Test

by John Lovin

F&I Showroom

February 2015

The Consumer Financial Protection Bureau (CFPB) has not wavered in its belief that policies that allow dealers to mark up the interest rate on retail installment sale transactions creates a fair lending risk, with Toyota and Honda’s captive finance companies being the latest finance sources to be targeted. The attention dealer reserve is getting has caused some finance sources to limit rate participation, while others have eliminated dealer markups altogether.

This bureau’s activities have left dealers with a lot of unanswered questions: Is the CFPB coming after dealers next? If so, how can a dealership protect itself? If finance sources are pressured into eliminating rate participation, how will dealers make up for the lost revenue? Let’s examine these questions individually.

5 Things the Best Salespeople Never Do

by Ken K.
-The Sales Side
November 20, 2014

If you’ve worked more than one sales job then you’ve had more than one top sales rep as a co-worker. There is one (or more) in every organization. Usually their numbers are insane while everyone else is wondering how they did it. Well the best salespeople all have some things in common, and it’s usually not something they’re born with. Here are five things that the top sales reps at a company never do:

Control the Process and Make the Sale

by Joe Verde
for Agent Entrepreneur
January 8, 2015

I get this question a lot from salespeople, “Why do you say we have to be in control if people already know what they want?”

Because 86% don’t buy what they said they wanted and too often, salespeople assume their prospects won’t slow down and let them do their job just because they come on the lot and say, “We know we want a white X-40 SUV with 3^rd row seating – do you have one and how much is it?”

Since selling is a process, if you’re going to sell a lot of cars and make a lot of money, then you’re going to have to learn how to control every step of the process, which includes slowing things down and learning how to direct the conversation.

Rumors of the F&I Managers' Death Have Been Greatly Exaggerated

by Michael Esposito
January 13, 2015
DrivingSales.com

For several years there has been some banter concerning the demise of the F&I Manager position. A focus on the need to speed up the car-buying process and improve customer satisfaction will inevitably lead to the demise of this role in the dealership, or so it's said. In the words of Mark Twain, I believe the rumors of the F&I Manager's death have been greatly exaggerated.

5 Questions Successful Salespeople Ask Themselves Everyday

by Ken K.
January 8, 2015
theSalesSide.com

It’s great to be a successful salesperson. You make a lot of money, your management gives you more leeway and perks that others don’t get, and you become a person who is confident that they've mastered their craft. But just like anything else, the most successful people don’t get there without a plan and a process, and that usually involves constant planning, analysis, and adjustment. You can only get so far on natural ability, to be the best you need to always be critical and  keep a running dialogue going with yourself. That’s why successful salespeople usually ask themselves these five questions:

5 Trends to Watch in 2015

by Jim Henry
Automotive News
December 30, 2014

Here are five F&I trends worth watching as 2015 unfolds:

1. Political pushback on the Consumer Financial Protection Bureau (CFPB)
2. Stricter limits on dealer reserve
3. Lenders remain abundant
4. Captives step up oversight
5. Growing push to shorten F&I times