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.
Once you have a strong F&I menu in place, it’s time to focus on training your sales force and F&I team to work as a cohesive unit. The F&I director needs to be involved in the structure of the loan from the moment the customer says, “I want to buy this car.”
While it might seem strange at first, it’s important to include the F&I director early on in the sales process. The F&I director can easily conduct an initial customer interview to obtain all the information needed to structure the loan. At this time they can also answer questions and begin gathering the information needed to present the F&I products in the most efficient way possible, as far as terms and coverage options are concerned. Before giving the floor back to the sales representative, the F&I director should also set the time line for the customer on how long the rest of the process will take. Trust me – that simple fact alone can make a world of difference.
Once the sales representative has resumed discussions with the customer, the F&I director can step away and secure the loan. The important part here is to reduce or eliminate downtime for the customer by finishing out the necessary paperwork and securing the loan while they are working out details with the sales team. The customer’s clock on how long the F&I process takes doesn’t start until they get into the office, so it’s important to get everything possible done before their clock starts.
With the customer in the office and their loan secured, all that’s needed is to review the terms of their loan and the F&I product menu. Because of their initial conversation, the F&I manager should have all the information needed to efficiently and effectively review the F&I products and their benefits with the customer and achieve maximum product penetration while still remaining compliant.
With almost 40 years of helping dealers achieve their profit potential, EFG Companies knows how to equip your team with the right training, products and marketing support to take your beyond expectations and maximize your profitability. Contact us today to find out how.