The finance and insurance (F&I) manager is the unseen individual in a dealership. What do they do? And why do car buyers have to meet them before taking their new vehicles home? Read on to find out how F&I managers protect car buyers to these and more questions.
Who is an F&I Manager?
A meeting with the F&I manager occurs after the buyer finds a model they want and negotiates the price with a salesperson. An F&I manager also ensures all vehicles sold are delivered on time and in the proper condition.
How They Protect Car Buyers
The F&I manager sells products that are beneficial for car buyers. Their prices are negotiable depending on what your customer wants. Below are five common products sold to protect your buyers.
1. An Auto Service Contract
An auto service contract is the most common F&I product. It protects the car buyer from future repair and maintenance costs after the expiry of the new-car warranty. This can be purchased before the new car warranty expires. The warranty’s value primarily depends on how it gets used and how often. For a car that breaks down regularly, it is worth the investment.
2. Car Maintenance and Service Contracts
These are vehicle service contracts that lock in the price to prevent future escalation in parts or labor costs. This means the car owner will not hand over money to cover future service costs. Such a maintenance plan only applies to your specific dealership or branches.
3. Road Hazard Warranty
This warranty is helpful for the car owner who regularly uses roads with terrible paving. Chances of damage to the tire and wheel and the cost of replacing them are higher. Many tires come with a warranty that only covers tire defects and not damage. The amount charged depends on the wheel or the tires of the car.
4. GAP Insurance
Guaranteed Asset Protection (GAP) insurance covers the difference between the price for the new car and what would be covered by the insurance company should it be stolen or totaled in an accident. They usually include this package in new car leases.
5. Interior and Exterior Protection Plans
The sleek interior or exterior of a new car can show signs of damage in a short time. Car buyers feel at ease when they purchase protection products that help maintain the condition of their vehicles and reduce the overall repair costs. These plans also help ensure the vehicle’s value does not drop too significantly.
And Much More
These are only the tip of what an F&I manager does to protect your customer’s purchase. The manager will also protect your dealership from litigation, explains the benefits of products to buyers and makes sure you operate ethically, all while helping your car buyers feel secure in their purchase.
Vantage Financing can help your independent auto dealership with the F&I products that bring your car buyers peace of mind. Get in touch to learn more.
