Pub. 14 2015-2016 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 3 , 2 0 1 5 12 new jersey auto retailer How to $ell More F&I BY JAN KELLY S uccess in the F&I department depends upon three main factors: people, place and process. I am often asked when does the F&I process begin? My reply is always the same, the process begins with the first encounter with the customer, whether it be online or at the dealership. Value in the F&I products and services must be seen throughout the buying pro- cess. The current push is to have customers buy and drive within one hour of arriving at the dealership. When I read that mantra I wonder if those who are advocating that position realize the mountain of docu- mentation that is required to sell a vehicle and secure the financing, not to mention providing the customer with a professional orientation of the vehicle’s computer capa- bilities. With the increase in computing power in today’s vehicles there is also a greater need for pre-paid maintenance and service contracts. So I think we can all agree, the process takes time. When I am asked “how much time,” I reply, “As much as we need and not a second longer.” The time spent depends largely upon the level of the customer’s knowledge. Have they completed their research? How tech savvy are they? What is their credit rating? What is the customer’s budget for the purchase? PEOPLE When a person is in sales they natu- rally want to produce more. While the finance and insurance position is paperwork-intensive, it is still a selling position. Therefore, the first thing is to staff the department with personnel who like to sell, in addition to being detail- oriented. If personnel in the Sales Busi- ness Office view themselves as glorified secretaries, and NOT sales people, that attitude hinders productivity A dealership must foster a team effort between sales and the “sales business of- fice” (F&I). The sales business manager should be supportive of the sales depart- ment and work to secure financing on each deal. The difference between a good month and a great month is the gift of getting the credit-challenged cus- tomers approved with the lenders. Often these deals do not have any finance in- come, what they do have is the gratitude of the customer AND the sales person. This can build greater support of the ancillary products when opportunities present themselves.