F&I really does not stand for funny and irrelevant – or flinching and imploding. F&I really does stand for fabulous and incremental. Making it so on your bottom line is up to you.
The other side of F&I is protecting yourself and your customers from fraud, identity theft, and other forms of compliance failure. These can cost both your customers and you far more than you could ever make…they could cost you your dealership.
So, let’s start with making F&I fabulous. The attitude has to be “aggressive and graceful in retreat”. You will never get more than what you ask for the first time. You must always look for the maximum reserve. You must always offer all potential products. You must always be able to walk that back.
Set clear targets for your team. Not every deal will be the same, but you should be averaging over 7.5% F&I Profit on the amount financed. You MUST be hitting 100% Turnover on all deals – which means that cash or finance, all your deals go to your finance office. They may not be able to convert to finance, although 10% of the time they can, they can always sell protective products.
Look, you are not taking value, you are offering value in F&I. Your team needs to know this, or you need a team that does.
Your F&I Sales should, in the end, represent about 50% of your overall net profit. If you are missing that it is time t take another look.
Then there is the other side.
Fraud is a huge issue today and you have to be on the lookout. There are two sides that could significantly impact your dealership. One side is people’s identities being stolen so that the people buying your stuff are not really them – a pretty big problem – and then there is the other way where people with stolen identities from your dealership (through stolen identities- copied IDs, copied Apps, or other copied info) are buying things. Neither of these cases are good for you.
It is good to Fraud Proof your store by taking the steps needed to at least give yourself the “best practices” protection from the CFPB.
Make money, protect your money – that is what we are all about.
That is what we do!
Dealer Profit Services - Come Visit - Upcoming Schedule
National Marine Lenders Association - Platinum Sponsor - Attending - Sept. 19 - 21, 2021
IBEX - Attending - Sept. 28 - 30, 2021
Boating Industry Elevate Summit - 2021 Leadership Council Member - Top 100 Sponsor - Table - Nov. 8 - 10, 2021
RVDA Conference and Exhibition - Associate Member - Speaker - Nov. 8 - 11, 2021
MRAA Dealer Week - Education Champion Sponsor - Booth - Hospitality Events (all nights) - Dec. 6 - 9, 2021
Dealer Profit Services - Driving Profit Through Fun and Inspiration
Dealer Profit Services, LLC can help you achieve F&I excellence - no matter where you are in the development and/or maturity of your store or stores F&I success model. As the industry's best Finance Solutions Provider and the only one to take your customer to Fun and Inspiration with a Free and Idyllic lifestyle through F&I, thus driving industry-leading levels of F&I profit, Dealer Profit Services can and will equip you with what you need to take that next step in your F&I success - regardless of what that next step might be. Whether you want someone to help you take over take over your F&I and with our experienced personnel just help you drive profit to your store, provide help to you some of the time, need some quick advice, or just provide F&I Training/Consulting, we are here to help you. If you are not fully equipped with all of your Compliance Manuals and Training, Dealer Profit Services can do that too. Contact us anytime at info@dealerprofit.com or give us a call at (470) 326-0966.
