Is it possible for Finance & Insurance, and modern retailing to coexist?
Consumers of today expect and deserve a quick and contemporary (digital) car-buying experience. Although our industry has made enormous steps in that direction, there is still a long way to go. Particularly in terms of F&I.
The F&I procedure takes forever. While purchasing a car probably won’t ever be as quick as buying a few items at Target, it also doesn’t have to take hours. Our industry will be better able to move to contemporary retailing and draw in younger people if F&I is included in a simpler, more fluid procedure.
Just a reminder: Digital retailing tools and internal business procedures are combined in modern retailing to better serve clients online. The goal is to develop a customer experience where the dealership takes the lead from the consumer regarding how he or she wants to buy a car. It acknowledges that changing the way we sell to meet current client expectations won’t be possible through technology alone. Internal procedures must also adapt.
I discussed modifying internal sales structures to implement modern retailing in my previous blog.
I’ll discuss why the current F&I methods are ineffective for a modern workflow in this blog post and how to change them.
What’s wrong with F&I?
Why did we create the post of F&I manager? I’d contend that the hiring of salesmen without any training in relationship building led to the establishment of the F&I office. They teach them how to get the best deal on a car. After they’ve intimidated the customer, they switch them over to F&I, where it’s assumed the manager builds a rapport and convinces the customer to purchase further things.
F&I managers should be paid more, so the logic goes because they have connections to lenders and ties with customers. But what’s this? Customers despise the F&I department, and no financing company will stop working with them just because the F&I manager quits.
Why are we still using this procedure?
I think we still use the same procedure because we’re afraid to let go. Dealers don’t trust salespeople to offer menus, check that all the documentation is accurate, and make sure that all contracts are clean while they are in transit so that they will be paid quickly after the sale.
Although the existing system may benefit dealers, it makes it more difficult for consumers to purchase a car! It is illogical.
Consider this scenario: A customer finds a car they adore, haggles over a price, decides on a monthly payment, and then visits F&I to discuss add-ons that raise the monthly cost. Why spend so much time haggling over the price just to spend more time raising it again?
What is the substitute?
The alternative is to combine all components of a sale into a single solution, which minimizes paperwork and guides the consumer and salesperson through every step of the process.
It begins with a powerful CRM that precisely computes every facet of the contract, including the agreed-upon purchase price and license costs. The total monthly payment is then computed after the CRM publishes the transaction to a digital menu presentation tailored for the car and customer. After that, a platform for digital signatures receives the agreement. Because they are operating on a single platform with set next steps that cannot be skipped, they cannot make mistakes.
The process is shortened, clients are happier, and CSI is increased when you combine everything into one solution and eliminate the time-consuming and pointless F&I presentation.
How can salespeople be trained?
You can’t just hire a young worker from Starbucks and put them in this new sales position. Vehicle contracts are lengthy legal papers that are very detailed. This new position requires training for salespeople.
Teach the contract to the salespeople. Review the pages and make sure they understand its purpose and how to express it. After that, invite salesmen to all CIT and finance meetings.
Dealers must employ personality as well. I want solution consultants who are friendly, attentive to what clients want, and focused on serving them rather than the dealership. More F&I sales depend on possessing these traits since they assist in developing connections and trust with consumers. Individuals do purchase goods from individuals they trust, after all.
If we abandon the “box” and instead incorporate F&I on one sales platform with set procedures that cannot be skipped, F&I and contemporary commerce can coexist. There was a reaction when the industry mandated that we always show the financial menu to customers. A lot of good people left their jobs, but now every store does it. I anticipate the F&I office changing in a similar manner. There will be opposition. Good individuals to leave. It will eventually become the norm, which is excellent for our sector. The process of purchasing an automobile will be simplified by a contemporary, effective workflow. That’s what we all desire, right?
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