We’ve all heard pundits and analysts make predictions about everything under the sun. These days, the economy and political wrangling provide rich fodder. We at EFG also make predictions as part of our strategic guidance to our clients and partners, backing them up with nearly 50 years of experience, including 11 presidential elections, 22 Congressional elections, countless state and local contests not to mention the Great Recession and a pandemic. We’ve been there, done that.
All that to say, we recommend retail automotive dealers set a tone of operating with certainty and focus their efforts on F&I, training customer service best practices, and differentiating their dealerships based on the value provided. We have all experienced challenging markets like this, and volatility is nothing new in our industry. We know that when front-end margins shrink, back-end margins must expand.
Fortunately, dealers today have an ace up their sleeve! The new labor force in retail automotive is extremely well-educated and eager to be successful. But for the last four years, dealer sales and F&I teams have had an easy time of it, responding to an eager consumer with COVID cash. They lack the training or muscle memory for selling and generating revenue through consumer protection products.
Dealer principals now have a great opportunity. Invest in their people and get them trained properly to provide value-based, compliant customer service that drives sales and puts profits on the balance sheet!
Opportunities abound to deliver value
Retail automotive has become increasingly complex, with consumers facing a bevy of decisions. Should they buy an expensive new vehicle with a high interest rate and long-term loan, or should they try to find a slightly more affordable used vehicle that meets their needs, with an equally high interest loan? Is a lease an option? What about buying an EV to take advantage of the tax benefits? And what is the best option to finance the vehicle? Once the vehicle is settled on, how should they protect their investment?
The answer lies in the skills of your dealership team. Make sure your team is trained to understand the unique needs of every customer as well as every step in the sales process – from initial buyer consideration to driving the vehicle off the lot. Selling a vehicle today is radically different than during the pandemic with a slew of new compliance requirements that must be followed or risk expensive fines and penalties. Dealers must also have the right portfolio of protection products that keep that new or used vehicle on the road – and meet the customer’s needs.
As you make your strategic plans for a profitable, successful second half of the year, we strongly encourage you to control what you can, operate with certainty, and invest in the one thing that is sure to deliver value – your team.
Our proven team of EFG trainers and F&I experts can help your dealership understand the best options for you – and your customers. At EFG Companies, we’re more than an F&I provider, we’re your business partner in the retail automotive industry. Contact us today to learn more about how our team can help you achieve your winning strategy.