The Entrepreneurial Advantage

Having honed my skills at a leading national corporation before transitioning to an independent firm, I've gained a comprehensive understanding that uniquely allows me to offer expert insights on the stark contrast between large F&I corporations and entrepreneurial F&I agencies. While both have their merits, independent agencies far surpass the corporate behemoths in our ability to offer personalized services that large corporations simply cannot match. Think of it in similar terms to public owned versus family-owned dealerships. The family-owned stores have a lot more at stake pending their own independent success.

Here’s a look at how the entrepreneurial side of the business delivers more value to our dealers.

Nimbleness Plus Better Customer Service

Being nimble is an inherent advantage that smaller agencies often tout, but the real differentiator lies in customer service. Independent F&I agencies, like Vanguard Dealers Services, have goals and objectives that are aligned with their dealers, as opposed to corporate conglomerates pursuing their own agendas. In an independent setting, you’re not a cog in a large machine acting on directives sent down through file and rank; you're a consultant and a true partner.

Freedom from a One-Path Approach

Big national companies usually offer a comprehensive training program, but once you're out in the field, there's little room for individual or customizable flexibility. You sell what the corporation wants you to sell, often sidelining what's best for your clients. It's the Jerry Maguire story rehashed: the focus is on what benefits the organization, not the dealer.

Customized Service and Local Understanding

One distinct edge independent agencies maintain is the ability to offer account managers who are committed to servicing the dealers. These are not mere placeholders, but rather partners intimately familiar with the dealers' businesses who are located in close proximity to the dealership. On the other hand, large corporations often deploy representatives who are not local, hence lacking a nuanced understanding of dealer-specific challenges.

Multiple Customized Solutions Over Pigeonholing

In my years of working for large F&I corporations, it became clear that they were more about cost-benefit analyses for themselves, and less about providing transparency or truly meeting dealers' needs. As independent agents, we can collaborate with these giants for administrative and claims processing, as appropriate, but we are not restricted to their product lines. This flexibility allows for greater creativity in customizing unique business plans tailored for individual dealers.

The Stakes are Higher and So Is the Reward

For independent agencies, every single dealer counts. If we lose a dealership, the impact is significantly greater compared to an agency-direct model used in larger corporations. In such environments, sales representatives still get their salaries and perks regardless of performance or losing a store. This is not the case for independent agencies, where livelihoods are directly tied to the satisfaction and retention of clients. Simply put, within an independent agency, if the dealer wins, the agent wins.

A New Paradigm for Dealer 20 Groups

Further, in dealer 20 Groups, where best practices are shared, an independent F&I agent can bring something unique to the table, serving as a subject matter expert rather than just a corporate salesperson towing the company line. It's an opportunity for the 20 Group to go beyond conventional wisdom, cookie-cutter products, and explore options that could better serve dealers.

Conclusion

The importance of choosing an F&I agency that understands your dealership’s specific needs cannot be overstated. Independent agencies offer a personalized, more flexible approach that focuses on what’s best for the dealer, what’s best for the dealer’s customers, rather than the bottom line of a large corporation. It's about true partnership, where the stakes are high, but the rewards are even higher.

The entrepreneurial F&I agencies are the ones pioneering the way toward more transparent, dealer-centric approaches. And that's a trend any dealer should want to be a part of.

Are you considering utilizing an F&I agency for your dealership? Make sure to contact Jamie Tax today at jtax@ezvds.com or through LinkedIn to learn more.