HOW TO DRIVE HIGHER PROFIT MARGINS AT YOUR DEALERSHIP WITH F&I BY ASSURANT DEALER SERVICES, AN NHADA ENDORSED DIAMOND PARTNER In the past year, in a review article, Automotive News noted that new vehicle sales and F&I profitability were higher than what was originally predicted at the start of the year. As the article analyzed the trends that influenced this betterthan-anticipated outcome, a broadening interest in education, online F&I research and growing F&I training programs were all factors cited. There’s no question that consumers are more informed than ever, with most auto shoppers conducting online research ahead of making their purchase decision. Your customers may already know the model, options and paint color they want before visiting your dealership. And that means your customer experience has already begun and could extend to the F&I products you count on to drive up your margins, too. As online and in-store interactions come to drive a complete customer experience with your dealership, many F&I teams are evaluating the role of digital retailing when it comes to F&I product sales and how to train F&I staff to drive profits in the hybrid world of digital and human-driven sales. Our team of experts has shared a few tactics that could help your team combine the online and instore customer experience to increase dealership profit margins. 4 TIPS FROM OUR TEAM OF EXPERTS 1. Provide F&I Product Information Online To Increase Attachment Rates Given the critical role F&I products play in car dealership profit margins, it makes sense for them to be a central focus of the car sale throughout the process. Rather than wait until closing the sale to talk about F&I, let customers research your F&I options on your website as they shop. Studies show that customers who research F&I products during the pre-buying process have higher attachment rates at the end of a sale. By being able to conduct F&I research on your own website, buyers will be more prepared to purchase both a vehicle and F&I products once they come into your dealership. The Assurant Digital Engagement Toolkit can help you provide downloadable F&I product information, including easy-to-understand videos in English and Spanish that can make the value of protection products more accessible for your customers. 2. Ask Lifestyle Questions To Build a Dialogue Around the Need For F&I Products These questions promote active listening and can help your F&I team better understand and drive the customer’s needs so you can position F&I as a relevant solution to potential problems instead of another product to buy. It’s important for the owner of a vehicle to picture themselves or their family in a situation where the products would benefit them. Questions to ask could include: • “How many miles a year do you usually drive?” Discovery questions help determine which products and what level of protection best suit the customer’s needs. • “What technology feature on this new car excites you the most?” This sets up a discussion about the high level of technology inside the car and the urgency to protect against the high cost of repairs or replacement of that tech. • “Where do you plan on taking your first trip in your new car?” No one wants to break down away from home. This helps you explain the benefit of nationwide protection and included roadside assistance in protection products. 16
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