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.

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.