Everyone benefits when customers purchase F&I products. It’s obvious to see that more money is made all around when customers purchase F&I products.
But more importantly, doors open to opportunities for repeat business when claims are paid and major problems are solved for customers.
So why aren’t product penetrations higher?
In this article, we continue to outline the next three most common F&I product profit leaks. We also offer a highly effective solution for each one of them.
F&I Product Profit Leak #4: House Deals — No Presentation
SOLUTION: Hybrid Sales/F&I Technology
Some customers never hear an F&I presentation at all, especially when business gets backed up.
The Desk Manager, salesperson or even an F&I Manager may start printing contracts without any F&I product presentations to keep customers happy and business moving. Another reason a customer might not receive a F&I product presentation is because they purchased their vehicle without ever coming to the dealership.
We provide you with the training and technology solutions to help ensure everyone is provided with a complete F&I product presentation without having to wait, be rushed, or even come to the dealer.
F&I Product Profit Leak #5: Lack of Trust or No Relationship
SOLUTION: An F&I Process Designed to Build Relationships
If a customer is in a hurry or indifferent towards the F&I Manager, it will cost the F&I Manager product sales.
Conversely, if the F&I manager builds good rapport with the customer, the F&I product presentation will go much better. The customer will want to believe what the Finance manager says and will be more willing to accept recommendations.
Generally, there’s not much time for Finance Managers to develop relationships with their customers and gain their trust. Therefore, F&I Managers need a specific plan and the skills necessary to develop meaningful relationships quickly.
F&I Product Profit Leak #6: Customers Don’t Understand the Value
SOLUTION: A Sales Process that Builds Value Before Sharing Pricing
Some F&I managers assume that because a customer bought a F&I product in the past, they understood the value of it. But that assumption can be costly. Just because a customer purchased a F&I product before doesn’t mean they understood the value of it. It also doesn’t mean they understood how to use it when they needed it most.
It takes thorough explanation to fully develop the value of a product so that price becomes less of an issue. And it takes time to provide that to a customer.
The College of Automotive Management offers a solution to help F&I Managers maintain control of this. Our solution helps Finance Managers gain the customer’s permission to take the time necessary to fully explain the benefits of each F&I product.
Train with the Industry’s Highest-rated Automotive Career Training Program
CAM employer partners prefer to hire CAM grads.
These are not the only reasons why customers don’t buy F&I products. But if all these problems were eliminated, you can imagine how high your produc penetration would be!
You will increase your income and the income of everyone around you when you partner with The College of Automotive Management. Call us at 888-857-4411 to learn more and to speak with the College about your career goals. We look forward to hearing from you!