Category: F&I

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Compliance F&I

Are You In Control of Your Profit Potential?

Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies

 

Contributing Author: Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies

If you’ve been paying attention to industry news, you probably know about the Federal Trade Commission once again setting its sights on add-on products. While large industry players expected this on the heels of the CFPB’s increased oversight into auto lending practices, many dealerships looking to make up for lost dealer reserve with the sale of F&I products are looking to tighten up their policies and procedures.

If you haven’t already begun re-evaluating your compliance procedures, now is the perfect time! While there are many elements to consider as you review your current policies and procedures for your existing product offerings, there is an upside. When sold in a compliant manner, F&I products provide dealers the ultimate control in their profit potential.

This being said, applying compliance standards and scrutiny to your policies and procedures is growing in importance.  A recommended starting point, as you evaluate your product offering, is to ask a simple question:  Do your products’ benefits fulfill a real and mathematically calculable customer need? 

Starting with this premise, here is a checklist to perform due diligence:

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F&I

Automotive News – Consistent F&I Pricing Key to Compliance

Jim-Henry

 

Contributing Author: Jim Henry, Automotive News Special Correspondent

As regulators scrutinize auto lending practices, companies in the F&I space have made compliance with state and federal rules a priority too.

F&I product administrator EFG Cos., of Dallas, is one such company. About a year ago, it appointed Karen Klees to fill the new role of compliance specialist. Klees recently amended her title to certified consumer credit compliance specialist after completing the Consumer Credit Compliance Certification Program from the National Automotive Finance Association.

Klees explained to Automotive News Special Correspondent Jim Henry how she would put her training to work at dealerships in 2015.

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The talk at auto finance industry conferences centers on compliance as the growing arena in the CFPB era. Is that your experience, too?

Everyone I’ve come into contact with recently has identified … stresses they are under from the Consumer Financial Protection Bureau and other regulators. It’s been a huge kind of coordinating task.

At the same time, the industry says it didn’t just discover compliance, right?

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F&I

Tips to Shorten Time in the F&I Office

Contributing Author: John Stephens

 

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.

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