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. 

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.

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

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.”