F&I Managers Overcome Challenges

Jacqueline Bodnar

Market Drive News

Nov. 26, 2006

Many people who have worked in a dealership know that one of the hardest positions around is the one that F&I managers hold. They meet challenges on a daily basis that keep them more on their toes than those on “Dancing with the Stars.” But when they know what might be thrown at them and what some of the common challenges are, they can have a fair shot at beating them. A little preparation goes a long way. “One of the big challenges is the custody of the customer,” explains Arzu Algan, dean of education at the Automotive Dealership Institute, located in Scottsdale, Ariz. “The chain of custody, as it refers to the customer, is essential in the F&I process.

The customer must be controlled at all times, beginning with the salesperson.” To do that, she explains that one important aspect of always having control is accomplished by maintaining a consistent turnover strategy through the entire process. From sales all the way through finance, the process needs to be smooth, working like a well-oiled clock. This is the best way to avoid the problems that can arise. “This can be accommodated in several ways,” says Algan. “Have the salesperson serve as an ambassador of the dealership by taking the customer to the finance office and introducing him to the F&I manager.”Along the way, the salesperson should briefly explain to the customer what will happen in the office, so they know what to expect. Algan suggests that another option is to have the manager meet the customer on the showroom floor or at the salesperson’s workstation, where the manager can explain what will happen. These small gestures to make the client feel more prepared and relaxed will go a long way when it comes time to stepping comfortably into the finance area.”If the customer has knowledge of the process, he can mentally prepare for it,” says Algan. “That means he won’t be surprised or upset when he is asked to spend another 30 minutes at the dealership in the finance office, after he already spent hours making his deal.”

In order for this to work, it’s important that employees work together as a team, especially the F&I manager and the salesperson. This, in turn, will benefit the customer and the entire dealership. To do this, it helps if the sales staff is educated about the importance of F&I products and processes.

“If there is good communication between the F&I and sales departments “ , the F&I managers keeping the salesperson updated on the progress of their deals, and the salespeople prepping their customers for the F&I experience, “ then everyone wins, including a more relaxed customer,” adds Algan.