Evolve F&I Practices and Exceed Customer Expectations

To help evolve F&I practices and make sure dealers are in step with changing customer expectations, it’s important to present product offerings early in the sale and deliver a speedy transaction. Customers today are going to come in with extensive research on the type of vehicle they’re getting and how much they are looking to spend on their monthly payment. But F&I products are not likely something that they have done an extensive deep dive on. Utilizing space on a dealership website to highlight F&I can help get customers engaged in the discussion, provide them with specific information and expedite the sales process before they step foot into the dealership.

Another strategy is to encourage sales personnel to start planting seeds early. Whether it’s during an initial sales call, test drive or giving a tour of the service department, consistent conversations about F&I products can help address a customer’s specific needs. Avoid making the sales process feel like an overwhelming presentation of every available option in a suite of F&I products. Ultimately, the customer should be making the decision if what they are purchasing is of value to them.

In addition to a timely and efficient experience at the dealership, customers are looking for affordable payment options in an ever-changing car market landscape. As financing rates rise and supply chain challenges continue, average vehicle payments are very expensive. It’s helpful for lenders and dealers to work together, develop a strong relationship, and optimize payment structures for customers.

Affordability and F&I are very much linked too, in that they focus on protecting a large financial investment. The F&I presentation could be an opportunity to lay out a scenario where a customer could incur a large repair cost that they may have to pay in full, if their purchase isn’t covered with a vehicle service contract.

The same principle could apply to vehicle maintenance, where the customer has the opportunity to lock in today’s labor rates and today’s costs instead of battling outside factors like inflation.

EVs are becoming more affordable, and with that, there is going to be an increase in the adoption rate. Dealers can serve as the trusted advisor during an EV discussion and training is key. From an F&I and service department perspective, dealers should ensure that all certifications are up-to-date and personnel are prepared to service EVs that come in for repairs and maintenance. If you’re offering these types of services, it can be valuable to sell EV service contracts during the original sale. VSCs designed specifically for EVs can help cover expensive technology repairs and additional wear and tear that may not occur on an ICE (Internal Combustion Engine) vehicle. These types of products and sales strategies provide additional value for customers and can help drive a profitable F&I department as the EV market continues to evolve.

The annual member golf event is now under the Clear the Air Foundation umbrella. It will be held at Blackstone Country Club on Monday, October 9th and will be free to dealer members. There will be an option to donate when you register in case you would like to further support the mission. There are many sponsorship packages available, and I welcome any referrals. Please reach out to me for a list of available packages. We plan on filling the field with 144 golfers yet again, and proceeds will support the foundation. Last year we raised $55,000, and I hope to exceed that this year. Golfer registration will open in July. I’m looking forward to another fun day!

The foundation has partnered with the Colorado Energy Office and Community Access Enterprise in support of the soon-to-be rolled out Vehicle Exchange Colorado (VXC) program. This program creates a pathway for an income-qualified individual to trade in an old or high-emitting internal combustion engine vehicle in exchange for a point-of-sale rebate of the purchase or lease of a new or used EV or PHEV vehicle.

You can learn more about the program here. I encourage all new car dealers to sign up here so you are ready to participate when the program launches in August. This program will drive sales and leases of new and used EV and PHEV vehicles as well as help us get more older vehicles off the road.

Finally, I was honored to receive the EPA Clean Air Access Award for Community at the EPA headquarters in DC. It’s the only award in this category in the country, and it provides the foundation with some well-deserved national recognition. Your continued support made this happen and I want to thank all my donors. It really does make a difference!