Evolve F&I practices and exceed customer expectations.

Presenting F&I early and often.

To help evolve F&I practices and make sure dealers are in step with changing customer expectations, it’s important to present product offerings early in the sale and deliver a speedy transaction. When customers come into the dealership, they’re being asked to spend a lot of money. In a vehicle sale, time spent is not necessarily positively correlated with money spent, so the more time a customer spends at the dealership, the more frustrated they may become with the process. Making the purchase process as seamless as possible can help entice a customer to come back for future service or sales.

Customers today are going to come in with extensive research on vehicles and how much they are looking to spend on their monthly payment. But F&I products are not likely something that they have done an extensive deep dive on. It’s key to communicate these offerings early on by utilizing space on a dealership website to highlight F&I. This can help get customers engaged in the F&I discussion and provide them with specific information before they step foot in the dealership.

Another strategy is to encourage sales personnel to start planting seeds early. Whether it’s during an initial sales call, test drive or giving a tour of the service department, consistent conversations about F&I products can help address a customer’s specific needs. Once those needs are identified, it’s key that the sales personnel relay the information to the F&I manager prior to the product presentation – so they can deliver a curated, targeted menu of products the customer may be interested in. Avoid making the sales process feel like an overwhelming presentation of every available option in a suite of F&I products. Ultimately, the customer should be making the decision if what they are purchasing is of value to them.

Strategically approach affordability concerns.

In addition to a timely and efficient experience at the dealership, customers are looking for affordable payment options in an ever-changing car market landscape. As financing rates rise and supply chain challenges continue, average vehicle payments are very expensive. It’s helpful for lenders and dealers to work together, develop a strong relationship, and optimize payment structures for customers. For example, suggesting an increase in down payment may help lower the rate and meet the customer’s desired monthly payment.

Affordability and F&I are very much linked too, in that they focus on protecting a large financial investment. The F&I presentation could be an opportunity to lay out a scenario where a customer could incur a large repair cost that they may have to pay in full, if their purchase isn’t covered with a vehicle service contract. The same principle could apply to vehicle maintenance, the customer has the opportunity to lock in today’s labor rates and today’s costs instead of battling outside factors like inflation.

Expanding knowledge and offerings in the EV market.

EV’s are becoming more affordable, and with that, there is going to be an increase in adoption rate. Dealers can help provide information to customers during an EV discussion and training is key. It’s helpful that all personnel are informed of the latest industry trends and help educate customers throughout the purchase process. From a service department perspective, dealers can ensure that all certifications are up to date and personnel are prepared to service EV vehicles that come in for repairs and maintenance. If you’re offering these types of services, it can be valuable to sell and bundle EV vehicle service contracts during the original sale. VSC’s designed specifically for EV’s can help cover expensive technology repairs and additional wear and tear that may not occur on an ICE (Internal Combustion Engine) vehicle. These types of products and sales strategies can help provide additional value for customers and can help drive a profitable F&I department as the EV market continues to evolve.