Category: F&I

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EFG Companies F&I

The Importance of Product Knowledge

dealHave you ever had a finance manager or loan officer complain about being burned out?

We all know that dealerships and lending institutions alike are trying to find ways to lessen the burden  when it comes to selling consumer protection products. After rapid expansion of menu’s, F&I managers and loan officers are struggling to comply with the 100%-100%-100% rule and keep their penetration numbers up.

Whether your menu is large or small, product knowledge is the most obvious yet least recognized key to keep managers from being overwhelmed and generate success. In addition, it helps managers craft questions for the beginning of the process to better understand which products best fit their consumer’s needs. When based on product knowledge, these questions are the key to creating logic hooks that turn “no’s” into “yes’s.”

Furthermore, product knowledge:

  • Increases comfort level with the product presentation process
  • Makes it easier to present different angles or benefits based on the consumer’s needs
  • Hastens recovery from curve balls

Consider your product penetration rate in your dealership or lending institution. According to Auto Finance Magazine, the average penetration rate for consumer protection products sold in the United States is approximately 40%. What would you do to increase your rate?

With over 35 years in consumer finance, the experts at The Transcend Group, a division of EFG Companies, know how to train your team to consistently meet and/or exceed performance goals by focusing on filling consumer needs in order to sign more loans, increase margins and foster consumer loyalty.

We provide management consulting and advisory services in the areas of corporate growth strategy, innovation and growth processes, organizational transformation, and talent management and development strategies.

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EFG Companies F&I

2013 Pacesetter – EFG Client Star Family of Dealerships

Contributing Author: John StephensEach year, “F&I and Showroom” selects six F&I Pacesetters of the year based on their ability to balance performance with customer satisfaction.  These dealerships set the pace for the rest of the industry with their professionalism and integrity. This year, Star Dodge Chrysler Jeep Hyundai of Abilene, Texas was named as one of the six Pacesetters for 2013.

What sets this family-owned small-town dealership apart?

The Star Family of Dealerships generated maximum PRU and customer satisfaction by taking a customer-centric approach to training and presenting their F&I products with the help of EFG Companies.

In addition to annual compliance training at EFG’s headquarters in Irving, Texas, Star’s producers learned how understanding the customer’s needs and driving habits sets up the product presentation and benefit discussion, as well as providing a strategy for responding to customer concerns.

Hector Lebron, Account Executive, Dealer Services
Right: Hector Lebron, EFG Companies
Left: Jeff Zinsser, Star Family of Dealerships

Once back at the dealership, EFG’s client representative conducted onsite training, reinforcing the methods learned in the classroom. They also provided guidance and a sounding board to both the front lines and upper management. This continuous engagement ensures that the skills learned in the classroom setting stay sharp, generating a higher success rate and PRU with EFG’s dealership clients.

Since becoming an EFG client in 2010, Star has increased PRU from 105 units per month to over 200 units per month in 2013.

  • Average PRU for new vehicles: $1,500
  • Average PRU for used vehicles $1,250

This achievement would not have been possible if Star’s Dealer Principal, Mike Dunahoo, did not believe in treating everyone like family. This not only includes customers, but also employees. In fact, Star Dodge Chrysler Jeep was named “Best Dealership to Work For,” by Automotive News in 2012.

By pairing excellent training, products and engagement from EFG with Dunahoo’s passion for providing the best experience, Star significantly increased product performance to become a 2013 Pacesetter.

F&I and Magazine’s Pacesetters are nominated by dealership employees, general agents, F&I providers and dealership vendors based on their commitment to regulatory compliance, ethics, and to providing a customer-centric sales and F&I process.

Last year, two premier EFG clients were named 2012 F&I Pacesetters.

With EFG’s world class products like MAP and Drive Forever Worry Free (private labeled Maxwell Forever), Nyle Maxwell averaged two products per deal while maintaining a CSI score of 93.4 percent for financial arrangements in 2012. Maxwell also credited continual training from EFG’s Transcend Group for keeping his F&I sales high and his staff motivated and inspired.

The Robbins Auto Mall F&I team touted a 76 percent penetration with EFG’s MAP VSC, and 41 percent with our Signature Finish Appearance Protection products. Robbins attributed the connection between the F&I and sales departments as responsible for such great penetration levels. By placing Top Performers for Robbins Auto Mall and extensive training from the Transcend Group, the sales staff adequately presented F&I offerings at the right time to their customers.

Want to learn how EFG can help your dealership raise the bar? Contact us today!

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EFG Companies F&I

Is Your Gross Profit Not Where You Want It?

Your F&I Products could be the culprit.

Contributing Author: John StephensAs a dealership owner or general manager, you probably continually analyze your numbers and productivity to see how you can increase profit. You consistently review how many deals your sales team closes in a month, your product penetration, web traffic, etc. When it comes to analyzing your F&I products, are you taking a strategic approach to analyzing their benefits for your dealership?

Strong F&I products do much more than sell. They:

  • differentiate your dealership in the market;
  • help build customer relationships;
  • are designed with the customer experience in mind; and,
  • increase service retention.

When evaluating your mix of F&I products, think beyond product penetration to how your products enhance gross dealership profit by creating a customer experience that fosters lasting relationships and repeat sales.

John Stephens CalloutWith over 36 years of developing innovative consumer protection products, EFG Companies knows how to structure your F&I products to get the best results. For example, our dealership partners love our Drive Forever Worry Free program. Why?

Drive Forever takes the approach of building customer relationships to increase gross profit. This is backed up by messaging tailored to a very specific market of people looking for used cars. The messaging and the brand speak to practicality and the necessity of protecting finances from the potential breakdown of the most expensive components on a used vehicle.

Drive Forever provides real protection and is structured to pay legitimate claims. While this means it’s not the cheapest product available, it is one of the more comprehensive and reliable products in the market. This provides dealerships a tangible payoff to their marketing efforts and messaging about being there for their customers. It goes from being lip service to that of tangible value to the customer and brand believability.

Lastly, Drive Forever directs customers back to the dealership for service appointments. When a customer’s vehicle breaks down, they are more likely to return to the dealership to facilitate the entire claims and maintenance process. This increases the likelihood of selling the customer another vehicle up to 80 percent.

Excellent F&I products help drive greater traffic to all aspect of your dealership. From sales through F&I to service, EFG knows how to structure your products to put your dealership in the best light with your customers, and thereby increase retention and gross profit.

To learn how our innovation, dealer engagement and focus on increasing profits can benefit your dealership, contact us today!