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ReprintsHow best to improve F&I? More training, dealers say
Better training was the No. 1 choice for improving F&I this year among dealerships responding this month to an informal Automotive News online survey.
And it's no wonder. In addition to finance contracts for loans and leases, F&I managers have to stay on top of a changing menu of products, plus a long and growing list of legal disclosures.
For example, the Federal Trade Commission this year started enforcing the Red Flags Rule, aimed at preventing identity theft. Meanwhile, dealers have said throughout 2011 that F&I products are more important than ever to overall dealership profitability. Those factors add to the F&I manager's workload and the need for more training.
Half of the 143 dealership respondents to the nonscientific multiple-choice survey answered "Better training for F&I managers" to a question that asked: "What did you do this year to improve your F&I results?" That was far and away the most popular answer. Respondents had to choose only one answer.
The next-most-popular choices were: "New rewards/compensation system for employees" and "Improved menu presentation technology," such as iPads. Those responses each got about 19 percent of the total.
Only about 6 percent of the respondents said they started selling service/maintenance contracts in the service lanes, making it the least favorite choice among dealerships to improve F&I results. That's surprising because several of the big publicly traded retailers said that they were pushing hard this year to sell more F&I products in the service department, especially extended-service contracts.
Dealerships' top and bottom choices could be related. Larry Dorfman, CEO of F&I vendor EasyCare, said separately that training is an important part of launching F&I sales in the service department.
Said Dorfman: "The challenge is in the training."
You can reach Jim Henry at autonews@crain.com.
