Contributing Author: John Stephens, Senior Vice President, Dealer Services, EFG Companies
As dealerships look into tightening operations and shortening the time it takes to buy a car, one of their biggest challenges is shortening the time spent in the F&I office. After all, there’s a lot to do there. There’s getting all the information to present to lenders, finding the right lender for the customer, working with the lender to secure the loan, discussing F&I products, signing paperwork, the list goes on. However, there are some very simple things dealerships can do to shorten this process.
First, let’s look at F&I compliance. This is probably your number 1 hurdle when it comes to shortening the F&I process. Although, it doesn’t have to be. For example, knowing that F&I managers are required to present 100% of your F&I products to 100% your customers 100% of the time, consider the number of products you have on your menu. Is it more than 6? Are you using the quantitative approach of including as many products as possible on your menu with the hope that one or two stick?
How often do you see customers watching the clock during the F&I product presentation? The best way to maximize your opportunity for profit and the customer’s time is by stepping back and analyzing your target consumer base. Then tailor your menu to achieve the best possible product penetration with a qualitative approach of outfitting it with between 4 and 6 products that match the wants and needs of your consumers. This alone makes your F&I managers’ jobs easier, faster and more pleasant for your consumers.
