7 Tips For Maximizing F&I Profit

by Myril Shaw, Dealer Profit Services

Are your F&I results everything you would like them to be? There are always ways to improve your results. Here are seven tips which can help you drive your results to the levels that you would like. 

 1) Advertise your Finance capabilities and make your website sticky. Make sure every customer-facing message, from print-ads and in-store signage through to and especially your website advertises your financing capabilities. You would be surprised at the number of potential buyers who are unaware that you can be a “one-stop shop.” Your mission is to make them aware that you have “competitive financing available” early and often. Get them the message before they go to their local bank or credit union, before they draw down their home-equity line or sell stocks or bands. Remember that 90% of cash buyers are using liquid cash. 

 Make sure that you are using soft credit pull technology on your website to have the “Get Pre-qualified.” This technology allows for a full bureau pull based strictly on their name address and phone number and has no effect on their credit score. They can print a certificate that says, “Congratulations! You are pre-qualified…” with your store named. Now you have solid lead to call and set an appointment with. It also makes your website more interesting and sticky. 

Use attractive and engaging inventory photos on your site. Use 360-degree photography inside and outside your unit. Your customers will love it and it will distinguish you from the competition. (Use this link to take a look…http://spins.spincar.com/poweryachtsinternational/smntf165f516.) 

 2) Make sure that every conversation, every advertisement, every sign in your stores leads with payment and never with the price. Payment plants the Finance message. It also helps to answer the question, “Can I afford this?” Think about the car folks – you’ll never see an ad that says “Get your new Nissan for only $21,000.00”, all you see is “Low payments of $199.00 per month.” Be a payment store and your F&I will benefit. 

 3) Sales sells the units and tees up conversations about extended warranties and other protective products. Sales never formally presents the products and certainly NEVER talks about cost or payment. Make sure that brochures and props regarding these products are highly visible in and around all the units on display. Ensure that when the customers ask your sales team about these products they know this answer, “Gosh, I’m not an expert on those products. Our Delivery Coordinator will go over all of that with you." 

 4) 100% Turnover to Finance must be the rule in your store. Every customer needs to see the Delivery Coordinator. No checks or cash on the sales floor. Yes, even cash buyers see the Delivery Coordinator. Some Cash buyers will convert to finance. All buyers, whether cash or finance MUST get a complete presentation of the Optional Protective Products. This is not just a finance revenue increasing trick – although ensuring 100% turnover will increase revenue. Your place your store in legal jeopardy if you do not present your cash buyers with the same protective options as your finance buyers. Increase revenue and protect yourself with 100% turnover. 

 One other tip to help this process. As soon as your salesperson has met the customer, they should introduce that customer to the Delivery Coordinator with the message, "Once we have decided which unit is right for you, you will be Bob (or Betty) again to go over details." 

 5) Train your Delivery Coordinator to be "aggressive, but graceful in retreat.” You will rarely get more than what you asked for the first time. It is much easier to have a conversation that starts with, “Your monthly payment will only be $299.00 per month and that includes your 8 year engine warranty, interior/exterior protection and GAP Waiver” and then back-walk from there than it is to have a conversation that goes, “You monthly payment for the base unit is $249.00 per month, no we can add an 8 year warranty, interior/exterior protection and GAP for just an additional $50.00 per month.” Start with what is best for you and the customer and walk it back as needed. 

 Also, remember and train your Delivery Coordinator in the “Hippocratic Oath of F&I – First, do no harm.” Selling a unit is the first priority – without that, no one makes any money – that said, there is no reason not to be able to gracefully get that unit sold while starting at the top. 

 6) Make Closing/Delivery easy. Send the customer a checklist ahead of closing that tells them what they need at Delivery. This list includes Driver’s License; Full down-payment; insurance binder with the lienholder information; any unique requirements at your store. Include the Optional Protective Product Disclosure (“Sign To Decline” showing what protective products the customer has accepted and what they have declined) in the package of documents that they sign at closing – and make sure that it gets signed. 

 7) Finally, survey your customers. Email all of them after the transaction is complete. Understand what is working and what is not working from the customer point of view. Remember, your customer service goal is continual improvement. How do you know what they are thinking if you don’t ask. If you rigorously train in and manage these seven tips, your F&I profits will thank you!

Dealer Profit Services, LLC can help. Whether you want someone to take over your F&I and just drive profit to your store, help you some of the time, need some quick advice or just provide F&I Training/Consulting, we are here to help you. Contact us anytime at info@dealerprofit.com or give us a call at (470) 326-0966.