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.

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. 

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.

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.

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 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

Delays Drive Dealership Customers Crazy

by Steve Finlay
WardsAuto
March 14, 2014

Dealership selling of finance and insurance products comes down to the “V” word: value.

So says F&I trainer Ron Reahard of Reahard and Associates. “Unfortunately, the process at some dealerships is designed to add value for the dealership, not the customer.”

F&I managers are most effective when they convey an impression of professional helpfulness. They stumble when customers sense a hard sell.

“Does the customer feel you are trying to help or sell?” Reahard says. “The process has to help them, or they’ll do everything to avoid it.”

Is Retail Automotive Shifting Towards Online Purchases?

DrivingSales News
November 12, 2014

(Click Here to go to the original article, and view the 2 minute video)

Is it possible for a customer to get in and out of a dealership in under an hour? We discussed this matter previously as Sonic Automotive was undertaking this tall task. Sonic even reportedly targeted a 45-minute transaction; a number that has proven difficult to reach. Next up is AutoNation. In an interview with CNBC, AutoNation CEO Mike Jackson said, “They don’t want to drag themselves from store to store for selection discovery, price discovery and they want a real car and a real price, online.”

3 Phone Training Strategies That Apply to Every Department at Your Dealership

by Laura Cummins
for DrivingSales.com
October 20, 2014

What do your sales department and service department all have in common? The phone. Though each department is very different, talking with prospective or current buyers on the phone is a crucial part of how they do business. As the dealer, do you think your employees’ phone skills are up to par? If your answer is yes, the chances are you aren’t looking at the data. Dealerships are actually losing more than $400,000, just because of poor phone skills alone!

Wait for It...F&I Pros Offer Tips on Doing It Right

by Steve Finlay
Wards Auto

A dealership finance and insurance guy beefed to fellow F&I folks about waiting more than two hours for another store to complete paperwork and deliver his newly leased vehicle.

The soft-boiled eggs hit the fan when he registered that complaint among compatriots. Many of them said he had a lot of nerve.

Some rapped him for buying from a competitor. (He responded the other dealership had the vehicle he really wanted.)

Mostly they thought his griping about waiting was way out of line. Of all people, he should know unforeseen factors – from paperwork problems to credit issues to a customer crush on a busy night – can hold things up, they said.

Think Like a Customer

by Rick McCormick, Agent Entrepreneur Magazine

What do Starbucks, Apple, Fed-Ex and Dollar General all have in common? Each company had a crossroads moment when their business was in decline and the future was uncertain. Also each company had a turn-around that was based on an intentional effort to make changes that were based on what the customer thinks and wants.