Kelly’s Korner – Time It Takes To Make (F&I) Case
Q. How can anyone present so many different F&I products to a customer with any degree of efficiency?
A. First, make sure sales personnel never again say to your customers: “Congratulations on your purchase! We’ll have you out of the finance office in 10 minutes.” Although these words are uttered every day in nearly every dealership I have encountered, they are the words that open the door for low F&I CSI scores.
The WWW Approach
Frankly, I do not understand what is happening in the F&I office when dealers report that it takes 2 hours for a customer to finish the F&I process. In most metro-area stores, sales personnel secure the credit application, the sales manager pulls the credit bureau and structures the deal. The finance manager then verifies deal information and sales figures, completes the F&I selling process and required documentation.
From the time the sale is completed, it should take no more than 7 minutes for the sales manager to notify the F&I representative that a customer is waiting and ask the manager to report to the sales office for the deal jacket. The F&I representative then meets the customer at the salesperson’s workstation. While verifying sales figures, the F&I manager employs Who/What/Where (WWW) questions with the customer to build rapport and gather information. “What will you use the vehicle for? Where do you travel? Who is going to be the primary driver?” With sales figures confirmed, the finance manager invites the customer to begin the data entry process and continues the WWW conversation as they walk to the F&I office.
When data entry is complete and verified with the customer, the F&I representative presents products as solutions to the customer’s needs identified in the WWW phase.
The Natural Order of Things
F&I products fall naturally into groupings such as: Mechanical Protection (MP), Appearance Protection (AP), and Equity Protection (EP). You can make a focused presentation using these 3 protection groups in 15 minutes.
MP Group
Many of you will have service agreements, along with some sort of prepaid maintenance programs complemented by road hazard to cover tires and rims. All items work in tandem to protect the customer’s budget from the rising cost of labor and parts.
AP Group
Everyone wants to keep their new vehicle looking as great as it does when they drive it home from the dealership. How can a normal person fight the ever-present hazards of the daily environment? The answer is protective coatings. The marketplace has exterior, interior, and now even window protection products that are easy to apply, easy to maintain, and easy to appreciate. The long-lasting shine of a good-looking vehicle eases the pen strokes of the monthly payments.
EP Group
A customer’s equity can be depleted without warning. When the down payment is low and sales tax and licensing fees are financed, an accident can leave the vehicle declared a total loss. When this situation occurs, there is usually a difference between the loan balance and the current market value of the vehicle. Who pays for the deficit? An injury or prolonged illness can also create a financial hardship for any family. Adding credit life and accident & health protection to the loan can provide peace of mind and greater security in a crisis.
A Focused Finish
When you employ Who/What/Where to understand what your customer needs and present your products in Maintenance, Appearance, and Equity Protection Groups, you give all parties plenty of time for proper disclosures on the costs and terms of the purchase.
Not enough time to make your F&I case? You may need to adjust your approach and act naturally.
“Kelly’s Korner”, OIADA Squeaky Wheel Newsletter, May 2005 Issue, p. 20