Now is the time, more so than ever, to increase efficiency, productivity and performance in the F&I Department. Vehicle sales are down and predicted to fall more in most markets and auto categories. F&I income is more critical today, when considering 75-80% of F&I income falls to the bottom line and vehicle margins are continuing to soften across the country.
“The divergence deepened in July as overall auto sales fell 7% from a year earlier to 1.42 million vehicles, according to Autodata.”
Decreases in sales, the need to increase incentives to turn slow moving inventory, specifically passenger cars, all lead to shrinking bottom lines for auto dealers. The need to increase efficiency and profitability elsewhere is paramount for dealers. Diversifying income streams throughout the dealership is vital for dealers and is an effort that will pay off in the long run. The F&I Department can be a powerful tool for dealers to hedge against changing car trends and economic challenges.
“And the average length a new vehicle sat on a dealership lot in July was 76 days, the highest in that month since 2009, according to Edmunds.”
Top tips for F&I efficiency and profitability:
1- DIVERSIFY: Having a diverse and well stocked F&I toolbox is vital to the ongoing financial health of a dealership. Automotive Assurance Group, a leader in the F&I industry helps dealers optimize their F&I departments and maximize the profitability of every deal.
2- LEARN: Ongoing training in the F&I department is crucial. Learning not only about the ins and outs of each product but the best presentation and sales methods. Learning how to answer questions accurately and communicate value for the customer.
3- COMPLIANCE: Compliance check-ups are vital. Following the laws and avoiding potentially costly fines is a necessity.
4- PLAN: Discuss long term goals and wealth building strategies with your F&I experts and build a plan to achieve your long term goals.
Automotive Assurance Group has been helping dealers achieve their maximum potential for decades. Contact us today to learn how our customized strategies can assist you in reaching your goals.