F&I Tips

F&I TIP

Keep videos short -- no feature presentations

10:03 am U.S. ET | Jan. 28, 2015
Dealerships that use videos to pitch F&I products or explain product features on an iPad need to keep them short, no more than a couple minutes. “People start out with these 12-minute videos. No way is anybody going to watch all that,” said David Putz, head of direct markets for Zurich North America Commercial, of Overland Park, Kan.... Read More »

 

F&I TIP

Stick to measurable goals in 2015

10:51 am U.S. ET | Jan. 21, 2015
“Make more money” sounds like a good aim, but it’s not an effective 2015 goal, says George Angus, head F&I trainer for Team One. Instead, realistically assess your current numbers. Pick specific, measurable goals, such as increasing penetration of one F&I product at a time, he advises. “The reality is that a dealer isn’t going to hit a switch and all of a sudden double their income per unit. It’s just not a realistic goal.”... Read More »

 

F&I TIP

Customers' spills provide great selling points

10:29 am U.S. ET | Jan. 14, 2015
Real-life examples illustrate the value of fabric protection, says Linda Benthien Flannigan, finance manager for Titus-Will Chevrolet-GMC-Buick-Cadillac in Olympia, Wash. One customer's child vomited red Gatorade all over the cream-colored interior of a Cadillac Escalade. To the customer's surprise, there was zero lasting damage. Same with the bloody nose of another customer's son. Those examples can help pitch new customers. “I have had customers come back and thank me,” she said.... Read More »

 

F&I TIP

Selling fabric protection? Skip the coffee

10:45 am U.S. ET | Jan. 7, 2015
When pitching fabric protection, don’t mention a specific stain, advises Kevin Grant, finance manager at Prestige Land Rover of Paramus (N.J.). F&I managers commonly warn customers that eventually they’ll spill their coffee, but that can backfire. Some customers respond: “That can’t happen to me. I don’t drink coffee.” Instead, Grant said, stick to a simple truth: Sooner or later, everybody spills.... Read More »

 

F&I TIP

Stress timely payments from the get-go

11:04 am U.S. ET | Dec. 30, 2014
Subprime loans often go bad when the consumer misses one of the very first payments. Paul McCarthy, F&I Director at Stevenson Automotive Group in Jacksonville, N.C., recommends F&I managers explain to subprime borrowers the importance of making each payment on time, maybe even a day or two early. This can help the individual improve his or her credit score, and the lender will appreciate it.... Read More »

 

F&I TIP

A rational ratio = F&I success

12:01 am U.S. ET | Dec. 23, 2014
What’s a good mix of F&I revenue? Paul McCarthy, F&I director at Stevenson Automotive Group in Jacksonville, N.C., says dealerships that rely on dealer reserve for 40 percent of their F&I revenue are “going to be in trouble.”... Read More »

 

F&I TIP

A picture perfect way to sell GAP

11:01 am U.S. ET | Dec. 17, 2014
To pitch guaranteed asset protection, use a visual to illustrate unexpected events, suggests Chris Shields, business manager for Mountain Valley Motors (Chrysler-Jeep-Dodge-Ram) in Blue Ridge, Ga. GAP pays the shortfall if insurance proceeds on a stolen or totaled vehicle aren’t enough to pay the owner’s loan or lease balance. Shields got his prop the hard way: “I show a picture of my wife’s totaled Mazda, when a huge tree limb fell on it right in our driveway.”... Read More »

 

F&I TIP

The power of a prop

11:09 am U.S. ET | Dec. 10, 2014
To show the benefit of interior fabric stain-proofing, Justin Gasman, finance director for McCaddon Cadillac-Buick-GMC in Boulder, Colo., uses a simple prop provided by the manufacturer of the coating: a small card with a line down the middle. One side is treated, the other untreated. A drop of oil wipes right off the treated side. Another drop soaks into the untreated side. Says Gasman: “Most people see the value in it.”... Read More »

 

F&I TIP

Why the need for GAP is real

11:35 am U.S. ET | Dec. 3, 2014
A common customer objection to GAP is: “I’ve never had a car stolen.” F&I trainer Ron Reahard suggests responding: “I’m glad to hear that. Auto theft is such a huge problem today, which is why virtually every new vehicle we sell comes standard with a security system from the manufacturer.” Emphasize to customers that if their car is stolen when new, they are at the greatest risk because their loan balance is at its highest, he adds.... Read More »

 

F&I TIP

Do-it-yourself maintenance? Not possible

11:06 am U.S. ET | Nov. 26, 2014
Explain the value of an extended service contract by comparing repairing today’s vehicles to fixing a computer. You can’t do it yourself, says Dina Wilson, finance director for Timbrook Automotive Group in Cumberland, Md. “You used to be able to access everything under the hood. Today, everything is computerized and harder to maintain,” she said at an industry conference. “If something goes wrong with your computer, you usually just have to replace it.”... Read More »

 

F&I TIP

Do customers balk at signing a screen? Easy does it

12:03 pm U.S. ET | Nov. 19, 2014
To ease customers into signing electronic documents, introduce a simple document for them to sign early in the F&I process, advised Mark Singleton, senior vice president at Reynolds and Reynolds Co. “Have them do a Department of Motor Vehicles form or an odometer form. It’s easy to do that upfront. The way the world works now, they have a fun demo ride, then they get turned over to the finance manager. ... It’s a turnoff.”... Read More »

 

F&I TIP

Pitch service plans one by one

10:25 am U.S. ET | Nov. 12, 2014
Present just one extended service plan at a time, and have a backup plan handy, F&I trainer Ron Reahard advises. Offering a range of plans at once creates confusion. Start with the best, most expensive plan. If the customer’s response is indecision or an objection, he says, offer the next-best, and so on.... Read More »

 

F&I TIP

The wrong words can kill a sale

11:29 am U.S. ET | Nov. 5, 2014
Don’t use the words “cash down,” says Peter Velau, president of the training division at Southwest Dealer Services. “The customer thinks that’s bad. The word [term] itself is a negative in their head.” Instead, he advises managers selling F&I products: “Explain it just as ‘You’re buying this.’”... Read More »

 

F&I TIP

Why you shouldn't dis credit unions

10:24 am U.S. ET | Oct. 29, 2014
Negative statements about credit unions are “an absolute credibility killer,” says George Angus. Customers believe in their credit unions. “It's like a cult,” says Angus, the veteran head trainer for Team One Group, of Scottsdale, Ariz. Instead of fighting credit unions, sign up with as many of them as possible, he advises.... Read More »

 

F&I TIP

Embrace Gen Y's pride in exclusivity

11:06 am U.S. ET | Oct. 22, 2014
To sell to Gen Y customers who think of themselves as unique, Gen Y consultant Jason Dorsey recommends F&I managers practice saying: “You have a unique situation. I'm going to get you something special that's one of a kind.”... Read More »

 

F&I TIP

Would you sell your F&I products to an expert?

12:01 am U.S. ET | Oct. 15, 2014
If you don’t believe in your F&I products enough to pitch them to an industry expert, stop selling them, advises Matt Nowicki, vice president of retail software at IAS. When he buys a car, he says, F&I managers see where he works and assume he won’t buy an F&I product, so they don’t offer him any. That's wrong, he says. "If you're selling a product you don’t believe in, please stop."... Read More »

 

F&I TIP

Unethical behavior can kill job opportunities

10:41 am U.S. ET | Oct. 8, 2014
Don’t cut ethical corners and expect to live it down, warns F&I trainer Tony Dupaquier. If a lender decides an F&I manager can’t be trusted, their career could be toast even if they change jobs, he said during an Automotive News webinar. “You go to another dealership ... one of the first places they call is the finance company.”... Read More »

 

F&I TIP

How high-tech vehicles can sell service contracts

9:57 am U.S. ET | Oct. 1, 2014
F&I managers should exploit customers’ concern about complicated technology to help sell extended service contracts, said F&I trainer Rick McCormick at last month’s Industry Summit in Las Vegas. He pointed to this year’s J.D. Power Initial Quality Study, which showed an increase in “things gone wrong.... Read More »

 

F&I TIP

Do your F&I products fit your market?

10:05 am U.S. ET | Sept. 24, 2014
Make sure your F&I products are right for your market, customers, vehicles and deals, Steve Veldkamp, a trainer with Great Lakes Cos., a Kalamazoo, Mich., dealer-services concern, told the Industry Summit conference in Las Vegas this month. They found a dealership in Michigan’s Upper Peninsula that was selling theft deterrent products. But how many cars were stolen in the U.P. in the prior year? Five. Actually, two, says Veldkamp.... Read More »

 

F&I TIP

Learn what the legal terms mean on F&I contracts

10:24 am U.S. ET | Sept. 17, 2014
F&I managers must be intimately familiar with the fine print in the service contracts and other F&I products they sell. If they’re not, and they have to testify in court, it could be a disaster, Dave Robertson, executive director of the Association of Finance & Insurance Professionals, advised dealers at last week’s Industry Summit in Las Vegas “Get your people to read the very documents -- the binding legal documents -- they’re asking your customers to sign.”... Read More »

 

F&I TIP

Salespeople need guidance on credit rules, too

11:10 am U.S. ET | Sept. 10, 2014
F&I managers must train sales staffers on federal rules governing consumer credit, trainer Ron Reahard says. Some don’ts are obvious: Don’t inflate a customer’s income to help the customer get a loan. Others are less so. For instance, customers must be told they don’t have to provide information on child support or alimony if they’re not using that income to help them get credit.... Read More »

 

F&I TIP

A longer list of lenders pays off

10:40 am U.S. ET | Sept. 3, 2014
The current trend in F&I offices is to use a short list of lenders, usually led by a captive finance company. But staying active with many lenders enables a dealership to find financing for just about anyone, argues Adam Marburger, finance director at AutoCenters Nissan in Wood River, Ill. “I’ve got a list of about 40 I do business with,” he said. “Of course, it’s like anything else: 10 of them probably get 90 percent of the business.”... Read More »

 

F&I TIP

Hiring enough F&I staffers saves money long term

9:16 am U.S. ET | Aug. 27, 2014
A dealership should hire more help if F&I managers have to handle more than 75 booked deals a month each, says John Malishenko, COO of Germain Motor Co. in Columbus, Ohio. Hiring costs money, but the dealership loses in the long run if F&I managers are short-handed, he said this month during the free Automotive News webinar, “Read More »

 

F&I TIP

Understanding female customers’ F&I acumen is key

9:38 am U.S. ET | Aug. 20, 2014
Finance managers shouldn’t try to guess how much an unaccompanied woman knows or doesn’t know about buying and financing a car, says Anne Fleming, president of women-drivers.com. Instead, she says, “Touch base and reaffirm as you go through the various discussions from the term to financing to extended warranties. Make sure you understand what she understands.... Read More »

 

F&I TIP

Verify customer data, keep copies

9:21 am U.S. ET | Aug. 13, 2014
To avoid trouble with lenders, dealerships should verify all information submitted by customers on a credit application, especially income, employment, time in residence, job description and housing expense, F&I trainer Gil Van Over says. Dealerships should also retain two copies of the credit application: a copy of the information the customer submitted, and a printout, signed by the customer, of the application the dealership sent out to lenders online.... Read More »

 

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