F&I managers have challenging roles. Aside from boosting a car dealership’s performance, they also need to keep up with changes in legislation, technology, regulations and customer expectations. For things to be simpler for both dealerships and managers, the latter must follow the best practices for seamlessly building compliance into your F&I process.
Adhering to this set of processes will ensure the dealership follows regulations and also help the F&I department perform better.
Best Practices to Follow for F&I Compliance
F&I managers are aware of how indispensable their role is to the success of the dealership. However, the rapid changes and development in the industry can make their job very demanding. Here are the best practices to help them fulfill their highly multifaceted role:
1. Keep Unyielding Focus on Compliance Adherence
Despite the complexities involved in various state and federal regulations, compliance should encompass all parts of the F&I process. Considering that noncompliance penalties are disastrous, this best practice should be the topmost priority.
2. Conduct Training Regularly
F&I managers should keep their department on top of F&I trends with regular training. Setting up weekly training sessions provides an opportunity to solidify the team’s strengths and correct weaknesses. Every session should also include a compliance component as a refresher and ensure everyone adheres to the regulations.
3. Aim Toward Increasing Customer Satisfaction
F&I experts agree that customer satisfaction is vital in improving any dealership’s performance. Focusing on customer satisfaction is easier if your F&I manager keeps these key elements in practice when dealing with customers:
- Decrease customers’ perceived pressure by making them feel the dealership’s transparency and honesty.
- Prioritize on showing the value of F&I products offered to customers.
4. Regularly Audit the F&I Department
Reviewing is another effective way to ensure compliance in the F&I process. It helps ensure that transactions are always compliant with relevant rules and regulations. In addition, it can also aid in analyzing and evaluating performance metrics. Experts advise on using a multi-tier audit approach, such as:
- A daily review conducted by the billing clerk
- Monthly review from the office manager
- Quarterly review from an independent compliance expert or dealer’s accountant
5. Make Use of Technology
Customers today are more familiar with technology than before. The best way to make them comfortable faster is to use digital products when presenting information, whether through a computer screen or a tablet. Compared to using the traditional four-column paper menu, menu programs on these devices can help speed up the F&I process. Faster and easy processing always leads to higher customer satisfaction.
6. Implement the 300% Rule
Always present 100% of your products, 100% of the time, to 100% of your customers. To make this even easier to implement, add all of your F&I products to your dealership website. This way, all customers who visit your site can see all the product information anytime.
Follow these Best Practices to Improve your Business
These six best practices for F&I compliance will help your dealership adhere to regulations and increase customer satisfaction at the same time. When you work with a financing company with expertise in F&I compliance, you add another layer of assurance that your business always follows regulations.
Contact Vantage Finance today to boost your dealership’s performance.
