When was the last time you saw your F&I administrator? Did you receive a data-rich year-end report on product performance? Have they provided a schedule of 2025 training sessions for your employees? Are they delivering support to your management team? No – nothing?
In the last 5 years, the F&I industry has seen unprecedented consolidation of third-party administrators at unheard-of multiples. While those mergers and acquisitions likely made a bunch of money for some folks, no one is talking about the impact on dealers in terms of revenue and service. And let me tell you – that impact is significant!
We’re talking about potentially losing hundreds of dollars in revenue per unit sold. That revenue can be traced directly to F&I products and employee performance. Management support, in-store training, and reporting should be standard practice. When it’s not, you can literally feel the dollars being pulled out of your pocket.
Let me give you an example. Last year, the F&I provider supporting a large dealership group in Texas had been acquired, leaving the dealership with a level of service that was very different than what they were used to, prior to the acquisition. Issues piled up. Training lapsed. Revenue flew out the door. At year-end close, the management team was left without the current, solid data they needed to make critical business decisions for 2025. Needless to say, it was not an optimal situation.
You should not lose money at the hands of an absent administrator. You deserve better service, and your employees deserve current, relevant training to improve their performance. The good news is – you can make a change! In two simple steps, you can throw out the bad and bring in an administrator who is dedicated to your business.
Mergers and acquisitions are a given in our industry. But bad service shouldn’t impact your business. Stop losing money!
With almost five decades of industry insight, EFG wants to be your business partner in the retail automotive industry. Contact us today to learn more about how our team can help you achieve your dealership’s goals for 2025.