Dealership Corridor
EFG Companies, the innovator behind the award-winning Hyundai Assurance program, today announced the launch of its virtual F&I model, Simplicity Finance and Insurance. With Simplicity Finance and Insurance, dealers can expect to generate upwards of more than $1,000 PRU, get more paper bought, increase product penetration, and make F&I compliance a non-issue.
Can you remember the last time you walked into a fast food restaurant and they filled your drink order? It was a short few years ago when the restaurants started handing you a cup and you dispensed the ice and your drink of choice. The shift happened as consumers demanded a better, quicker experience. Now, order kiosks are being introduced to eliminate further wait time.
While established dealership vendors have built iPad and Docupad platforms to improve the overall customer experience in the transition to F&I, this segment of F&I technology is about to burst with robust competitive offers. Startups are now beginning to appear on the scene with full online financing capabilities. In addition, manufacturers are now investing in online financing technology.
In December of last year, AutoNation launched its first online financing offering, allowing customers to value a trade-in vehicle, determine payments and apply for credit.
In June, CarMax, Inc., the biggest U.S. used car dealer, announced the rollout of a new online financing initiative to help customers pre-qualify for financing before entering the dealership.
In October, Automotive News reported on a dealership in California that was using Express Storefront, an online-buying platform from Roadster that allows shoppers to select a vehicle, get approved for credit, sift through F&I options, and set up vehicle delivery.
Even Equifax is dipping their toe in the online financing product market. This past month, John Giamalvo, the vice president of dealer services at Equifax, spoke at the National Remarketing Conference, discussing his company’s soft-pull tab that allows customers to get a free credit report without affecting their credit. In his presentation, Giamalvo stated that he sees growing evidence that car shoppers are ready to do more of the financing process online.
Also in November, a partnership between Drive Motors, RouteOne and Dealertrack made headlines with a collaboration that resulted in an online checkout feature for dealership websites. The feature allows customers to structure their deal online before finalizing and taking delivery of the vehicle. This creates a 24/7 sales funnel, where customers submit their information at any time of day or night. The information automatically populates into the dealership’s Dealertrack and RouteOne platforms, saving an enormous amount of time in the store.
Overcoming objections is quite possibly one aspect of the F&I office that is focused on the most. Classes abound on this topic. Dealers, in tune with their teams, provide one-on-one coaching sessions on this alone. After all, the more successful an F&I manager is at overcoming objections, the better their numbers, resulting in increased profit for the dealer.
I’d posit that many training courses/one-on-one sessions start something like this:
“The vehicle service contract is too expensive. Go.”
