Running a successful dealership requires more than having a good location and a lot full of vehicles.
It even takes more than having a top-notch sales staff and a great website.
Those things definitely help, but you can’t afford to overlook the importance of in-house financing, too. Understand how to properly set up your in-house Finance Department and you’ll enjoy a much greater chance of reoccurring success, year after year.
3 Steps for Setting Up In-House Car Dealer Financing for Your Dealership
Fortunately, plenty of other dealerships have successfully set up Finance Departments before. So, if you just follow these three steps that are proven to work, you can expect the same results.
1. Decide Which Financing Products You Want to Offer Your Clients
There are a number of different financing products you can offer clients at your dealership, so the first step is deciding which ones you’ll provide. If you’ve worked at dealerships before, you’ll probably have a pretty good idea which make the most sense based on the market you serve.
Once you begin contacting providers, they’ll be able to help with this choice too. Ultimately, you’ll have to decide, but their advice can go a long way toward ensuring you’re able to consider all of your options.
2. Pick a Lending Partner
In the past, most dealerships worked with a single local lender. This limited what they could offer in terms of financial products, but the majority of dealerships didn’t have many other options.
Today, that’s changed. Instead of working with a single lender, you can work with a lending partner like Vantage Finance. Vantage is not actually a lender. Instead, Vantage is a virtual finance company that connects auto dealerships with lenders that match each dealership’s unique needs and each of your customer’s unique needs.
Most importantly, this gives you more control over your customers, as you can finalize the sale and financing and deliver the vehicle without letting the customer leave “to get their money” with a Bill of Sale in hand and the ability to shop your deal against all of the other dealers between your store and the bank or credit union they are headed to.
3. Optimize Your F&I Department
Finally, F&I departments are far too valuable for independent dealers to not make them a constant focus of optimization.
Depending on your dealership size, this may mean hiring an experienced F&I manager to head your department and help it grow. Over time, you might find ongoing personnel sales and compliance training, technology updates and the introduction of new finance products will improve your bottom line profits.
Keep in mind that your F&I department won’t just help drive sales and increase your profit margins, it’s also a central means of improving customer satisfaction. That’s vital for improving your dealership’s reputation through word-of-mouth, but it will also help your online reviews. So, optimize your F&I department and you may see greater lead-generation and conversions.
Get Started on Your In-House Car Dealer Financing
In-house car dealer financing is essential to the success of your business. It’s also more than just a box to check, though. Set up your department ASAP and then get busy optimizing it, and you’ll soon find yourself profiting from this vital offering.