Staying up to date with the Finance and Insurance field is demanding. Look at it this way: F&I conferences are a yearly investment that reaps benefits in worker productivity and competence. These conferences also provide a venue for networking, promoting brand recognition through product placement, and learning about relevant new technologies.
Car dealerships are faced with disadvantages in today's fast-paced market. The belief that car purchasing can be a painfully long process is based on many old traditions at car dealerships that persist today. Faster sales can be accomplished by improving in three different areas. Each of these areas is based on building strong relationships and effective communication strategies:
Many benefits accrue from partnering with a focus forward Finance and Insurance (F&I) provider when you are in the auto dealership business. With better-managed sales and F&I departments, you can expect high F&I profits for all your vehicle sales. Your company also retains customers due to high CSI and enjoys a reduced employee turnover.
Being an F&I Manager has never been easy—and the younger generations are making it more difficult than ever. Dealerships are becoming a last resort for Generation Z, who grew up through the recession of the late 2000s. Burdened by student loan debt and inflation, these younger customers often feel that dealerships are a relic of a previous era. Here's 5 ways to get them engaged and interested in the car buying and F&I process.
Is Your Dealership Up on All of the Industry Trends?
To stay ahead of the competition, it is critical that a dealership is keeping up with the latest news and trends in the industry. Automotive News reported the trends to watch throughout 2019. As the article states, "many shifts in the automotive finance space that occurred in 2018 will carry over to this year?" How can you stay on top of all the industry changes, keep your dealership growing, and stay profitable?
Topics: Brand Awareness
Changed to Speed Up Your F&I Sales Process with 3 Simple Steps
SPEED IS KEY
According to a study done by Autotrader, the average dealership takes 61 minutes (or the time it takes to learn 20 foreign words and phrases) to complete the finance and insurance portion of a sale. The study also concludes that customers are happiest when the entire process, from walking into the dealership to leaving in a new car, takes only 90 minutes total.
As with most auto dealerships, your service and parts department is possibly your company's lifeblood. In a previous report, the National Dealership Association revealed that service and parts accounted for 46% of the gross profits at the average dealership. If your Financial and Insurance (F&I) Department isn't a close second as far as profits are concerned, there is no better time to consider Dealer Reinsurance than now.
The two most important aspects to think about when purchasing a motor vehicle is how you will finance it and how you will insure it. The F&I Business Manager comes in handy when your customers have decided to purchase a certain car. They are the person customers are handed to by the sales department, and their responsibility is explaining to them the available financing options and how each works. The characters of the Business Manager, therefore, determine whether a deal will go through or fall through at the last minute. Here are the qualities which make an excellent F&I Business Manager.
COMPETITION IS FIERCE
With 2019's economy in full swing, consumers are out in force looking for great products and even better customer experiences. This is especially true for car dealerships as online markets pop up and offer the consumer the ease of car shopping from their couch.
No one wants to wait for hours to close a car deal. While sales representatives want to sell more vehicles within a short time window, customers want to get their car as soon as possible. However, negotiations, the exchange of documents and upselling F&I functions often take a lot of time. As long as you can learn how to eliminate the wasteful parts of the sales process, everyone goes home happy.
Topics: F&I Profits