Auto dealerships are among the hardest-hit industries after the widespread COVID-19 containment efforts. Many dealerships had to close or limit their operations to online sales. The virus crisis also meant less showroom foot traffic for those that stayed open. Due to post-COVID-19 impacts on dealership sales and F&I departments, it is now prudent for dealers to adopt contactless transactions today or soon. Despite a decrease in in-person foot traffic, F&I products still have a role to play in educating buyers during research, transaction and post-sale. This requires preparing your business for the future today.
Future-Proof Your Sales and F&I Processes
Millennials and Generation Z are now getting married, purchasing homes and starting families. COVID-19 helped speed this up, leading to increasing demand for vehicle ownership all over the world. Many are now willing to purchase a car in the next six months.
So, how do you optimize your dealership sales and F&I processes to the preferences of these customers?
Investing in Digital Tools
Only 32% of car buyers were ready to purchase online before COVID-19 but now over 61% are open to that idea. To meet the expected growth in customer expectations, dealers should invest in digital retailing.
The best digital retail solution is one that includes critical features such as:
- Allowing your customer to learn more about your available F&I products
- Giving the customer options to save and retrieve deals in your showroom or online
- Speeding up the purchase process by integrating your site and CRM
Streamlining the Financing Process
The purchase process in some dealerships can involve up to eight people. They can include the salesperson, BDC agent, floor manager, internet salesperson, F7I manager and more for a single transaction.
Leverage technology to reduce your customer’s wait times. Moving them along the F&I process stream ensures an expedited purchase, eliminates wasted printed paper and increases transparency.
A few tools for streamlining the sales process include:
- Using mobile CRM to transition your online customers to the showroom
- Offering a digital F&I product menu that includes video features and presentations
- Mobile vehicle appraisal tools
Create a Customer-Centric Process
There will probably be over 245 million American licensed drivers by 2025, meaning an extra 3 million vehicles on the road each year. However, COVID-19 has shown that great prediction must not encourage complacency.
A big percent of your current car buyers consider customer experience as an important factor. This means that businesses that do not align their sales and F&I processes risk losing car shoppers to the competition. Virtual options are the key to success as small and mid-tier lenders become big forces in the automotive lending industry through integration through technology.
Are you ready to improve your independent auto dealership’s F&I department? Contact Vantage Finance and let us help you.