F&I sales can boost repeat business

Donna Harris covers retail issues for Automotive News
Many dealers tell me they are restructuring the way they pay F&I managers to encourage product sales over interest rate markups. Michael Brown, the vice president of operations for the Atlantic Auto Group of West Islip, N.Y., has that in mind and more.

Brown, who oversees the group’s 14 East Coast dealerships, says he also rewards F&I managers for selling products that help boost repeat business. So they earn fatter commissions on extended service plans that can reel customers back into the dealership for service than they do selling, say, a theft recovery system, such as Lojack.

Says Brown: “Lojack is a good product, but we want to focus on products we feel are more important because they bring the customer back.”