Be an F&I Professional

The credit markets have been rocked and are on their heels right now, which is why every dealership needs a dedicated F&I professional to find all financing options available on a deal. Although, yes, there are a few “niche” lending places left on a regional basis, the general consensus is that finance companies are looking for only the cream of the crop.

I don’t believe there are any secrets to finding new finance sources right now; the key to getting deals bought and funded is to have real F&I professionals working the deals in your finance office. Finance companies have been pummeled and are very skittish. They only want a deal that is a no-brainer, thus F&I people need to make the deals look, smell and sound like no-brainer deals!

In our world of special finance, the deal too often is sent to the finance company in the wrong format. Everyone points a finger at the finance company and blames them, saying, “They’re not buying anything,” when actually the same finance company is buying deal after deal from the competition down the street. Why? The competitor down the road has processes and procedures to properly structure a deal, so F&I can get it bought and funded.

How many times does your store get a commitment from a customer to purchase (after the salesperson has spent three hours working the deal) only to pull a bureau and find the customer can’t qualify for the unit? This occurs literally on a daily basis. The dealership then has a couple of choices, none of which are good. They can skinny up the deal and submit the unit to the finance company and hope for a miracle, they can work for more down payment, or they can try to switch the customer to a lesser unit. All of these options are less than desirable and will probably amount to a turndown by either the finance company or the customer. The best way to help F&I get the deal bought is to structure the deal correctly up front!

In order to make F&I look professional and get finance companies to purchase the deal, the process must be started correctly on the lot with the salesperson. The salesperson must do a good job of qualifying the customer. When the customer is suspected to have less-than-stellar credit, the salesperson should immediately get them pre-qualified (i.e., pull a bureau). Then, and only then, allow them to land on a unit or direct them to the unit for which they qualify.

Once this process is done correctly and the customer lands on a unit more suited to their credit profile, F&I can truly look and act like professionals in submitting the deal to the finance company. Make sure salespeople complete the credit application thoroughly and collect all stips. Once again, don’t have the finance manager play guessing games with the finance company; give them concrete answers to work with.

If the finance company does turn down a properly structured deal, F&I can call and rehash and actually have something of merit to challenge the turndown with. Finance companies who are unfamiliar with F&I personnel may readily reject deals, but instead of getting frustrated, a true F&I professional will ask why the turndown occurred and how they can improve the deal the next time.

Although the vast majority of our deals are submitted electronically, we are still in the relationship business. F&I shouldn’t be afraid to call and work with the finance company in trying to find some happy middle ground. Make sure your F&I people are true professionals who know and understand every financing program in your arsenal. Always structure the deal to maximize your front end first; then push for the back-end products.

Remember, success is a choice. Walk in step with a coordinated effort, and consistently execute a good plan with solid systems. I realize the times are tough right now and many dealers are facing challenges they never expected or foresaw. The car business does not have a silver bullet or a magic wand to help us. However, the fundamentals of business are still the same as they were years ago. Work hard, keep expenses low, run your store by the numbers and above all, work smart!
 
Vol. 2, Issue 6