| The F&I Department is one of the main sources of profit of the dealership. As such, the Finance Department is both one of the most dynamic and most important areas of any dealership.
It is charged with three primary tasks: completing all the legal paperwork involved in the purchase of a vehicle, arranging credit for customers who need it, and then helping those customers protect their investments by presenting them with option packages.
Most F&I Departments offer services far beyond credit and insurance. They also offer vehicle protection contracts and aftermarket products designed to protect the customer’s investment, such as alarm systems and products that protect vehicle finish and interior fabric. The Finance Department’s services focus attention on the benefits of financial arrangements and protection for both customers and their new vehicles.
The purpose of the Finance Department is to serve the financial and security needs of customers and to expedite the purchase process while generating a reasonable return to the dealership. Finance managers act as advisers, helping customers consider the advantages and disadvantages of alternatives that are available to them.
The F&I Department is also crucial to the dealership’s ability to retain customers. It has been proven that people who take advantage of F&I services and products are more likely to return to that dealership. If the customer chooses to pursue financing through a source other than the dealership’s Finance Department, they are likely to second-guess opinions of the dealership personnel, and will be unlikely to return.
If the customer has a good experience in the Finance Office, there is a good chance he will return to the dealership for future purchases, and tell his family and friends about it. Conversely, a negative experience in the F&I Department can be detrimental to the dealership, and hurt its future prospects. |