An independent auto dealership’s finance and insurance (F&I) department is often perceived as tedious and restrictive by customers.
While it may be true in the past, a survey indicates that modern customers are now more likely to respond positively when approached by an F&I manager. That could be related to how the industry has changed to a more customer-friendly approach instead of pestering them with strict contracts.
The survey, which focused on buyer patterns and preferences, saw more than 40% of the respondents saying they would want to speak to an F&I manager to understand better the available products like gap insurance or service contract.
Respondents also indicated they’re open to speaking to the F&I manager through various channels, including online chat, texting, phone calls, or in-store. This doesn’t just highlight the important role of F&I managers and why dealerships should expand their services beyond what’s provided in-store.
How can you do that? We’ve compiled some of our best articles to help you understand the importance of F&I for an independent dealership and how F&I managers can help grow your business.
F&I Trends You Should Know About
While market fluctuations can make it challenging to predict the future, there are some F&I trends independent dealerships should know about to keep up with the industry. As we settle into a post-pandemic normal, dealerships realize the effects following the pandemic could affect how they conduct business in the long run.
Some of these trends include the shift in customers’ expectations. Customers looking for a new vehicle expect to walk away with more than just that. They’re looking for accompanying dealer finance services and customer services. There’s also a shift in shopping behavior as more customers prefer to research online before visiting the dealership. Some even prefer completing the purchase online without seeing the car.
That means your F&I department should improve your website and purchase platform to provide the same service online as in-store. Services like credit checks, loan approvals, and insurance purchases should be available online or by phone.
Offering these tools and services will allow your customers time to explore their options before stepping into your dealership. This will also help you close the deal faster.
How To Build Compliance in Your F&I Process?
Now that your F&I department is playing a more forward-facing role with the customers, your F&I manager needs to keep up with changes in technology, legislation, regulations, and customer expectations. For things to run smoothly and for your dealership to maintain customers’ trust, both you and your F&I manager should continuously build compliance in your F&I processes. Here are some best practices for building and maintaining compliance in your F&I processes:
Conduct Training Regularly
Your F&I department should always be up to date with F&I trends and regulations. Setting up regular training sessions can help keep them on track and ensure everyone adheres to the regulations.
Regular Audits
One way to ensure the F&I department remains compliant is to review the F&I process regularly. This can help your team analyze and evaluate their performance to see if they are compliant with relevant rules and regulations.
Focus on Customer Satisfaction
Customer satisfaction is essential in boosting your dealership’s sales numbers. Your F&I department should focus on building customer satisfaction by ensuring relevant and transparent services with no hidden terms or costs.
How Can An F&I Manager Help You Sell More Cars?
A good F&I manager can be an asset to closing a car deal. One of their main roles is ensuring your customer is confident buying from your dealership. Now that we know customers are more open to speaking to F&I managers, here are some other ways they can help you sell more cars:
Create Effective Menus
Menus displaying a detailed list of products and dealer finance services can help customers identify other items they’d like to buy. An F&I manager can help you create a descriptive menu that’s easy to understand so customers are comfortable speaking about the services they need. These menus can also ensure your entire dealership is on the same page about your offerings.
Improve Customer Buying Experience
An F&I manager can work closely with your sales manager to help you assess if a customer requires more information about the vehicle or auto dealer financing. They can simplify car jargon and technical terms and put them at ease when discussing the technicalities of their vehicle and finances. That doesn’t just speed up the transaction but also provides a pleasant and positive customer buying experience.
Improve Transparency
Customers trust a business that offers transparency throughout its business processes. They’re more appreciative of an honest F&I manager instead of someone only interested in telling the customer what they want to hear.
It’s also important to remember that customers are now more knowledgeable and have access to a wealth of information. Your F&I manager can help promote transparency in your processes and show honesty to the customer the minute they walk into the dealership.
How F&I Managers Protect Buyers
A good F&I manager is beneficial to your business and your customers. An F&I manager can help protect car buyers by advising them about the best contracts, insurance, and warranties for their vehicle. They’re there to assure the customer that their needs are taken care of and that they can trust the products and services offered by your dealership.
What To Look for In An F&I Manager?
If you’re on the lookout for an F&I manager, you’ll want someone with a positive attitude who’s committed to the craft and believes in helping the customer as best they can. While they need to help you boost sales numbers, their primary goal should be the customers’ needs.
A successful F&I manager will have certain qualities, including the right education and training, an eagerness to stay up to date with industry changes, and a commitment to being always compliant and transparent. You’ll also want an F&I manager who’s honest with you and can help you improve your F&I services.
A great F&I manager will also know to avoid the common auto service contract mistakes like being too defensive, overwhelming a customer with jargon and numbers, and separating the agreement from the vehicle.
How Vantage Finance Can Help
The goal of any dealership is to offer quality service and increase sales numbers. Whether you need to revamp your F&I department or want to form one in your new dealership, Vantage Finance can help provide worry-free, turnkey F&I options.
We are a virtual finance company that connects independent auto dealerships to a range of lenders that many may not have access to. While you can choose to hire your F&I department, we understand that finding the right people while running your business can be a struggle.
We can alleviate some of that stress by helping you take care of the selling of backend products, addressing and making proper disclosures, and closing payments. Our goal is to increase your sales numbers and improve your customer satisfaction.
We know your dealership is ready to improve sales and close more deals. Contact us at Vantage Finance, and we’ll protect your bottom line and customer buying experience.
Are you interested in closing more deals and improving customer experience? Contact us today and find out more about our worry-free turnkey F&I options.
