The competitive used-vehicle market is prompting some dealerships to change the way they sell F&I products to buyers of high-mileage cars.
Vehicles with more than 80,000 miles will account for at least 20 percent of monthly used-vehicle sales at many franchised dealerships, say some dealers and vendors of aftermarket products. That's a huge increase from four years ago, when sales of high-mileage vehicles were less than 5 percent of a typical dealership's mix.
Traditionally, many F&I managers have believed that buyers of high-mileage vehicles do not want or cannot afford aftermarket products. So some managers make little effort to pitch F&I products to those buyers.
But times have changed. The growing segment means dealers must get better at selling finance and insurance products on high-mileage vehicles. The alternative means forfeiting profit.
Dealers say those customers will buy products such as roadside assistance, tire-and-wheel protection, windshield treatments or other limited coverage. The trick is having the right processes, they say.
"Some F&I managers push off high-mileage customers onto their assistant. Those assistants only go after the finance reserve on it and no F&I product is sold," says Mark Krejci, president of Continental-National, a brokerage firm in Tampa, Fla. He works with about 100 dealers.
He adds: "They get lazy and it's too much of a challenge to deal with."