FYI: F&I At NADA New Orleans 2005
F&I took center stage at NADA 2005. F&I Menus were everywhere. Service contract providers had them; so did computer companies. One menu an F&I director shared with me listed service agreements as only the first choice. The remaining 3 choices did not have a place for a service agreement and the F&I director seem puzzled when he confided that his service agreement production fell to below 30% when they implemented the menu in his store. I suggested to him that when a product’s presence is diminished on a menu the message sent to the customer is that the product is neither reliable nor valuable. McDonald’s still sells French fries because they ask customers to buy them. They did not remove them from their menu.
Some dealers believe that menus sell F&I products. My friends, menus do not sell anything. It is the enthusiastic presentation of F&I products by F&I representatives with faith in their products that creates the customer’s desire to buy. The menu is used most effectively as a summary and closing tool.
F&I issues were clearly on the mind of many dealers at the convention. Ethics, compliance, and proper representation were the themes of many presentations. FTC attorneys were exceedingly helpful in answering questions. With the legal spotlight still focused on the F&I department, full disclosures and complete documentation will be on the line in 2005. Dealers must instill a code of ethical conduct and insist upon full compliance from F&I personnel.
Take full advantage of F&I training and your state association meetings to dial in to what it takes to become 100 percent compliant with federal regulations. Use the FTC outreach program and download publications from to stay informed. Evaluate your current practices and correct questionable activities immediately. Document the steps you are taking and monitor your progress. Your dealership’s profitability and reputation are riding on it.
Dealer Marketing Magazine, March 2005 Issue, p. 7