Tag: Finance & Insurance

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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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EFG Companies F&I

Is Your Product Administrator Holding You Back?

Hollis Goode Blog HeadshotWe’ve all heard the phrase “I don’t want that product. I had something like it and they never paid the claims. It’s a rip-off!”

Over the years, product administrators have gotten a lot of criticism from consumers about their policies around claims adjudication. Meanwhile, dealerships have come to realize that the customer service provided during the claims process can have significant impact to their customer retention levels. For this reason, smart dealers are becoming more circumspect around who they choose as their F&I product administrator, as that company’s customer service directly affects dealership profitability.

Now is the time to pay attention to what makes a product administrator reputable and dependable, especially since those proof points can even help overcome consumer concern in the F&I office, as well as increase customer retention.

Proof points to pay attention to include everything from consumer reviews to the company’s BBB rating, but what really sets a product administrator apart is transparency. When evaluating whether your product administrator is holding you back, consider whether they provide information on:

  • the number of claims processed quarterly and annually;
  • the percentage of claims paid;
  • how quickly claims are paid;
  • the average call time;
  • the call abandon rate; and,
  • the average availability of a service provider or claims adjuster.

With this information in hand, you have a better picture of whether their processes reflect positively back on you, and have the data necessary to reinforce the positive experience that consumers can expect.

In addition, remember that because your dealerships sold the products, your customers will associate their claims service experience with your dealership. A good experience could cement their loyalty and cultivate return business, whereas a bad experience could send the customer elsewhere when shopping for their next vehicle.

Also, consider your personal dealings with your product administrator. Do they simply come by every once in a while to drop off collateral and leave, or do they make themselves available to you on your schedule? It’s a good bet that if the administrator is a good business partner and is actively engaged with your dealerships, then they will provide a similar customer experience level to your customers. The hallmarks of client service for a good product administrator include:

  • working with you to determine which products best match your market and competitive set;
  • being nimble in developing products that can accomplish business goals by meeting consumer needs;
  • being available by phone or email at any given time, including working the F&I desk when necessary;
  • providing training and one-on-one coaching with your F&I and sales managers on the benefits of the products, how to sell them, and how to overcome objections;
  • staying up to date on compliance and providing training, audits and strategies for dealerships to stay in compliance with both current and new regulations with a dealer services team that is 100% AFIP certified; and,
  • not only providing product sales sheets and brochures, but also information on the company’s administration practices.

With almost 40 years of experience in innovating and administering agile consumer protection products, EFG Companies knows how to set your dealership apart from the crowd. Our unmatched client engagement empowers our business development team to truly learn the ins and outs of your business, including the unique challenges you face. Meanwhile, our high-integrity claims administration model combines efficiency, responsiveness and reliability, resulting in:

  • superior customer service with a team of claims adjusters that are ASE certified and have an average of 15 years of experience;
  • 95.88% of claims calls answered within 90 seconds;
  • A claims call handle time benchmark at 5:30 minutes, while the industry average is 10 minutes;
  • 96% of all claims paid by corporate credit card within one hour of receipt of invoice.

Instill customer confidence and drive sales today! Contact EFG to unleash our profit potential.

Categories
Economy F&I

Post-recession consumers are primed for F&I products. Are you taking advantage of this trend?

Gabe-Aldrete-Blog-HeadshotWe have a paradox! More consumers are returning to the dealership to get out of their old vehicles; yet, there are more decade-old cars on the road today than since the depths of the recession in 2009.

If you’ve been following the news for the past two years, or even just the past month, there is not a doubt in your mind that the economy is improving and consumers are returning to dealerships. Both new and used car sales are up, and lenders across all credit tiers are seeing an uptick in loan volume.

According to the latest “Automotive Market Trends” analysis from Experian, the percentage of vehicles on the road predating the 2001 model year has reached its highest level since 2009. In fact, vehicles in that age group made up more than 28.3 percent of all vehicles on the road. To put this in perspective, before the recession, in 2008, that age group only made up 22.1 percent of vehicles on the road.

It’s understandable that during the worst of the recession, consumers held off on making big purchases like vehicles. With mass layoffs and companies filing for bankruptcy left and right, everyone was concerned about jobs and economic stability.

But now that the economy is expanding, shouldn’t consumers be trading up for a newer model?

According to Melinda Zabritski, Experian Automotive’s senior director of automotive credit, “While the growth in early model vehicles on the road is slowing, getting the most out of the vehicle they purchase still appears to be top of mind for consumers.”

Everyone knows that after the recession F&I managers were faced with a more informed and demanding consumer. But what few have taken into consideration is that this could be a good thing. With consumers hyper-vigilant about stretching their dollars, and getting more value from the companies with which they choose to do business, dealerships and lenders have the opportunity to create lasting relationships by aligning with their needs.

The consumers sitting across from the F&I manager know what it takes and the difficulties involved in maintaining older model vehicles. Imagine talking to a consumer who has dealt with three or more costly vehicle repairs within a single year. While they are concerned with current-model dependability, they still expect to keep their vehicles longer than historically normal.

By structuring your F&I products to meet their current needs, you can significantly enhance your dealership’s brand and generate lasting consumer relationships. Picture the relief on a consumer’s face when you tell them that your powertrain warranty will cover some of the most expensive repairs that could have set them back for months with their previous vehicle; or your vehicle service contract comes with roadside assistance so they’ll never be stranded again.

With their relief also comes increased profits for your dealership as well as the opportunity to build a lasting relationship for repeat business. With almost 40 years of experience in structuring successful consumer protection products, EFG Companies knows how to leverage consumer trends to successfully impact your business. Find out how today!