Fake identification, fake income. And it costs dealers and lenders alike.

This year’s Point Predictive Survey of auto lenders revealed that not only are 70% of respondents expecting a recession later this year but that fake IDs and falsified income are their biggest worries. 

It’s such a big problem that about 10% of lenders said they have stopped working with up to 50 or more dealers due to fraudulent loans being submitted.

Both can be costly both for your store and for your customer. F&I is often at the center of both types of fraud and it’s important to understand how to safeguard your process internally so you can both spot fake ID scams and proactively learn to spot fraudulent income information. 

How to spot fake ID scams

Criminals are getting better at being able to create fraudulent state driver’s licenses and often use stolen Social Security numbers or other falsified personal info to secure quick approvals. 

Here are some red flags to watch for that may mean your customer is not who they say they are:

• Never a down payment – Often the thieves will put together a 100% finance deal. After all, they have no intention of paying it back anyway so why bother putting any real money down?
• Saturday purchases only – Running this kind of scam means coming in when things are so busy that you hope no one notices anything is wrong with the ID. These fraudsters understand how the dealership environment works and they know that busy days are ones where a store is more likely to push the deal through faster to be able to deliver as many cars as possible. Spot deals almost always happen on Saturday and those are the ones most at risk.
• Delivery in unusual places – If your customer asks for the delivery to take place at a nondescript office complex at 8pm on a Tuesday, this could be a problem. Or if they want to meet in front of the local Walmart, be wary.

Scammers will try to take delivery somewhere other than the dealership lot. It may seem strange but, in many cases, this is what tipped off local authorities.   

• Take ALL F&I products offered – Make sense when you think about it. If the scammer knows they have no intention to pay for this car, why not say yes to ALL the F&I products? They don’t care but ultimately, they want to get out of the F&I office as fast as they can. 

What ‘fake income’ looks like…

This could be easier to spot when presented with income documentation either as a stip for approval or if your F&I staff is looking at information written on a credit application. 

• Perfectly rounded numbers – Sure, some may round up a little when talking about their income but it’s rare that it’s $70,000.00 on an actual W2 or pay stub. It’s too easy to present it that way. 
• Documents that look unprofessional – If the presented W2 or paystub LOOKS sketchy, it probably is. Misspellings, employer ID numbers that look too long or too short, and no tax info (if a paystub) are red flags. 
• O’s and 0’s used incorrectly – Amateur criminals easily get tripped up on this and it should be easy for your staff to spot as well.  
• Non-US Based Company – How convenient that the company is based overseas. Fraudsters will assume that no one will verify with a company in another country but unless it’s a well-known entity and the applicant gives you the information about how to find them, think twice.  
• Paystubs and/or Credit App Info Inconsistent – Dates all over the place, income variance from one job to the next being TOO great ($15 per hour one job and then the current job paying $125k…sure.) 

Being ready to identify fraud from the beginning helps maintain a solid relationship with your lenders and keeps your dealership out of the minds of criminals who look for dealerships that aren’t as proactive in catching these types of scams.

The post Tips to help spot identity and income verification fraud appeared first on CBT News.

Most see them as a ‘dead’ deal where there is little or no chance to hold any decent gross. 

But it’s not a lost cause at all. Sure, it’s a little more challenging but in this current market, there is still a way to make these deals a positive one for F&I.

Have Cash Deals Increased?

Industry expert Experian has reported a leveling off of new car cash deals but a rise for used car transactions. It’s no wonder as used cars are selling at a record high in the last two years…many of similar make/model are selling for as much as their new counterparts.

Add to that the increase in rates to numbers we haven’t seen since before the Great Recession of 2008, and it’s clear why buyers have such sticker shock.

Rates increasing have brought a reality check to customers who before now would be much more likely to finance a car but now the thought of a payment $100 more than it would have been in recent years is just too much.

How can F&I managers gain something out of this rise in all-cash deals? What are some strategies to change the mindset of going into a cash deal?

Cash Deals Usually Mean It’s Not really ‘Cash’

Cash deals generally happen when a buyer has either secured financing on their own with an outside lender (bank, usually a credit union) or they really do have the cash for their car. Some may use a HELOC (home equity line of credit) essentially taking out the cost of the car from equity in their home.

Dealers nationwide suspect the latter is happening more now that home values have sharply risen in many markets since the start of the pandemic.

No matter what, it’s still being paid back to someone somewhere. This is a good opportunity to tactfully remind a buyer that cars are a depreciating asset and cash is always better sitting safely in the bank or investment account.

Ask the Right Questions to Uncover Your Best Strategy

 It goes without saying that you need to know before the deal comes into your office if they are a cash buyer or finance. If they have their own money, immediately meet them on the sales floor if possible and ask a couple of quick questions as a ‘matter of procedure’. The customer should have no problem when it’s phrased this way.

Ask if they have a draft from a financial institution to be signed over. If they do, you can assume a credit union is involved and the second question that follows would be to ask if the dealership will be responsible for assigning the lien for the title.

If they say they are writing a personal check, ask the same about the lien assignment. If they say no, they either really do have cash sitting around or they are using funds from a HELOC.

None of these questions are in any way intrusive but there may be some buyers who might get cold feet realizing it’s not as easy to go do all the post-sale steps themselves vs. having the dealer handle it.

Be Light, Be Positive 

Make the tone of the cash conversation light and you may be surprised how easy the next part becomes.

Go through your menu presentation the same as you would with any other customer but consider offering a ‘deal’ for all cash buyers. Nothing wrong with taking a negative and making it a positive for their wallet by saying you have lower VSC pricing for buyers like them.

The post More cash deals than ever in ’23—How to turn a negative into a positive appeared first on CBT News.

The many steps along the way that customers must endure to buy a car and the complaints that younger generations have about the time it takes to go through the sales process begs the question…is having one point of contact from start to finish a better way to deliver the sales experience?

More simply put, one salesperson or ‘sales consultant’ shepherds the customer from picking out the car on the lot and closing out the sale by putting the tags on and watching them drive off.

Could a Single Consultant Be the Future of F&I?

Most F&I managers would say this is not beneficial and that they are skilled in not only high-margin aftermarket sales but also skilled in the art of negotiating financing deals with banks and captives that they know and understand. It’s experience and knowledge salespeople don’t have.

And maybe the traditional way of splitting the duties among two professionals is best for your store.

But in today’s increasingly digital retailing environment and with buyers in the Millennial and Gen Z generations looking for a better and easier way to buy a car, perhaps a one-person car sales experience is an idea whose time has come.

And let’s face it…the old way of spending four to five hours at a dealership is not appealing to anyone of any generation.

3 Ways a Dealership Could Benefit from a Single Consultant Approach

Here are some of the key benefits of having a single consultant handle the entire process:

1. Shortens Time to Delivery: One less step or handoff to another department means the buyers get out to their shiny new car faster. Happy customers mean higher CSI scores, too. The process takes too long and has for decades.

Consultants can handle the price negotiation and shift immediately to financing options and presentation of aftermarket products…all in one place.

2. Better if You Offer Preloaded Ancillaries: If your dealership preloads appearance ancillaries as a Line 1 add, the upsells are easier for the consultant. They already have rapport with the customer and have been asking the questions necessary to present the exact products that make sense as an addition to what the store already offers as part of the price of the car.

3. Rapport-Building is Seamless: When you work with one person throughout a buying experience, it lends itself to a better sense of connection, and a better rapport.

Think about the last time you bought a house. You worked with one realtor from beginning to end. They help guide you through choosing a house, making an offer, negotiating the deal, and on through to the closing.

Having one consultant handle everything makes the connection stronger and there is a heightened level of trust. This one person is helping you with everything. Plus, it will be psychologically harder to say ‘No’.

None of this is to say that F&I is ‘going away’ anytime soon as many in the industry have predicted over the last few years. More online retailers are making waves in the market by having an entirely online experience. That is good for many shoppers but not all. Some still like the human connection involved in car buying.

And many would argue that while this strategy may be perfect for the smaller, independent dealer rather than a franchise store, it doesn’t mean that it’s not possible for a new car dealership to benefit from this streamlined approach to sales and F&I.

Anything that makes for a smoother and more efficient sales process is a win-win and worth exploring to see if it would work in your dealership.

The post Does a single consultant approach make sense in today’s dealership? appeared first on CBT News.

For the last few years since the start of the pandemic, companies have been more open to the idea of working from home to reduce turnover while maintaining productivity.

Though some major companies are starting to bring back workers to a ‘hybrid’ work environment, those that are counted as ‘fully remote’ workers are likely here to stay.

Dealers have been seeing an unexpected benefit from the work-from-home crowd. Car buyers who are no longer commuting to an office seem to be spending more both on the price of a vehicle and willing to spend more on F&I products to protect them.

How can F&I capitalize on this trend and why does working from home translate into bigger opportunities for PVR growth? 

Let’s unpack it…

Cash Heavy: If you’re not spending a hundred dollars or more on gas and routine maintenance due to commuting five days a week, that’s extra money that can be allocated to a higher car payment. With higher interest rates, it becomes even more important to have that extra $40-60+ per month to buy the car you want.

A recent survey by GfK reveals that 47% of car buyers with a flexible work schedule were looking to buy a new car in the upcoming year. These are perfect opportunities to increase PVR relatively easily when payment buyers have more to spend.

EV/Hybrids More Popular: Another interesting finding was that buyers that were either fully remote or working a flexible schedule were more likely to buy a hybrid or EV than a regular gas model. Easy to see why…if they don’t have to drive much each week, the issue of ‘range anxiety’ is no longer as big of a concern since there is no long daily commute.

This gives F&I staff more opportunities to sell (and upsell) enhanced EV protection and products in the channel. Be sure your provider has added robust add-ons for EVs and hybrids.

Considering Luxury Vehicles More: Many remote workers average at least $75k in annual income, so more buyers in this segment are taking the plunge on luxury vehicles or choosing an expensive trim package. The splurge is more likely with higher income.

F&I managers can benefit here from higher prices for higher trim & options packages as the buyer will understand that with all the added tech comes the high price to repair it.

Higher finance reserves come with luxury vehicles even with the current state of higher base rates. PVR has already been bolstered by this last year but with more buyers working from home or having a hybrid schedule, those reserves should continue to increase.

Younger Generation of Buyers: More Millennials and Gen Z are working from home or working within a hybrid schedule. They see F&I products as more about peace of mind than extravagance. 

These buyers simply don’t want to have the hassle of a car breaking down and having to take time to figure out how it will get fixed. This seems to be leading to an increase in PPM and VSCs.

Younger generations of car buyers are more likely to buy F&I products if they are fully informed of the benefits before coming to the dealership. Stores that have leveraged online education for F&I products come out as the winner here.

Criminals are getting better at being able to create fraudulent state driver’s licenses and often use stolen Social Security numbers or other falsified personal info to secure quick approvals. 

There is no crystal ball that will give a window into the future of working from home but it’s safe to say that for a decent amount of the working population, it may be. 

F&I managers can identify opportunities to increase PVR and penetration by simply getting to know their car buyers and asking if they are ‘lucky enough to work from home?’ It’s a relevant question now, so why not ask?

The post Are car buyers who work-from-home making F&I sales easier? appeared first on CBT News.

The R-word. The one no dealer wants to hear and well…none of us want to think about it.

Recession.

And though most economists are saying we’re not in one quite yet, there’s still some that are predicting the worst as we head into the second half of the year.

Now is not the time to stick your head in the sand…it’s a time to be prepared to do things better so that you can stave off any potential crises if they do pop up.

There are four strategies that F&I managers can implement now (if they are not already) that can make potential headwinds this year easier to navigate…

1. Circle Back to Training – Having your F&I managers up-to-date on the latest techniques for closing a higher PVR is always important but never more than when the market slows down and customers begin to say ‘No’ more than they say ‘Yes’.

Role playing, walking through recent deals, examining video…all of these are helpful ways to sharpen skills and correct bad habits. Your existing staff is all you need (save your money and skip the expensive F&I trainers coming onsite). Trust that they know what works and what doesn’t.

2. Refresher for Compliance – As with training, it’s important to make sure your compliance procedures are updated and working well. It’s about reducing liabilities and boosting the financial security of your dealership.

Weekly or monthly F&I audits, online or digital learning focused on state/Federal compliance guidelines, and even taking the step of consolidating all F&I products under one company can help strengthen your overall compliance health.

3. Work on Post-Sale Follow Up – Something that is often missed during the good times is proper post-sale follow up. Those simple calls to recent customers to see how they are enjoying their new car and asking if they have considered adding any of the products they may have turned down when they were in the dealership.

It’s ok to follow up a couple of times. Regular intervals like 3-6-12 months out. It’s a touchpoint that goes a long way to establishing a great relationship with your local buyers and will pay off in increased referrals when times are tougher.

4. Upfront, Transparent F&I Pricing – Car shoppers are paying upwards of $1k for a new car payment, so now is not the time to play the shell game in F&I. Don’t pack payments and don’t give a murky presentation on the cost of products and protections.

Be upfront about coverages, financing options that fit THEIR needs, not yours, and if a recession does come, be sure to offer realistic pricing. You may lose a little in PVR but the goodwill you will get in return from fair pricing that benefits the buyer will be worth it.

These are all solid best practices no matter what kind of doom and gloom may be out on the horizon. Treat every customer with the same respect and trust you would want for yourself.

And if the worst does come, your F&I staff will be prepared to deliver solid PVR and high CSI ratings at a time when customers are most sensitive to how they are treated during such a big purchasing decision.

The post (Presumed) tough times mean a back-to-basics approach appeared first on CBT News.

With so many people involved in every car deal, there are several ways that things can go sideways. Between sales, F&I, delivery, etc…breakdowns can occur at any stage in the process.

How those mistakes are handled, especially in F&I, can impact your dealerships reputation and how customers view the experience of buying a car from you.

Most Common Issues

It’s important for F&I managers to understand that the faster they recognize an error and take responsibility, the easier it is to move on from it.

Here are two of the most common F&I mistakes that can happen at any dealership whether with a veteran or a rookie F&I manager and suggestions to help reduce errors and/or bad judgment – 

• Errors in the Deal – Everyone knows how busy a Saturday is. A signature on a contract, an initial on a mileage disclosure, copy of a driver’s license. It’s happened to literally everyone who’s ever worked a busy weekend with multiple deals piled up. 

F&I managers are subject to most compliance-driven rules and procedures when it comes to paperwork and in the rush of a busy sales day, little things can be missed. The problem becomes huge when it is discovered after the customer has left with the car and when the funding window is starting to close.

The Solution – Some dealers have a second set of eyes looking at every deal before the customer leaves the lot. An F&I Director or other manager can quickly look at all paperwork to be sure nothing has been missed. 

Never make this a punitive process. Bring the mistake to the F&I manager’s attention in a discreet way and have them try to catch the customer before they leave if possible. Encourage them to own their mistake with the customer and apologize for not catching it. 

• Customer Seeing/Hearing Bad Behavior – It’s a nightmare when a customer overhears a nasty comment about themselves from staff and though everyone wants to believe that would never happen at their store, everyone knows it does. The hope is no one hears it or sees it. 

Making a rude comment about a buyer with bad credit, being angry about a cash deal, or insulting a customer who pushes back on a product presentation…all scenarios where an F&I manager must see the issue with their behavior and if caught by the customer, be willing to immediately apologize and ask for forgiveness without excuses.

An argument can be made that the world we live in now is more acutely aware of poor behavior in the consumer landscape. Better to recognize it now and make it a teachable moment rather than play defense later and risk your dealerships’ reputation in the community.

Criminals are getting better at being able to create fraudulent state driver’s licenses and often use stolen Social Security numbers or other falsified personal info to secure quick approvals. 

The Solution – If a customer lets management know that they heard something, don’t wait to address it with the staff member. Discreetly bring it to their attention and then have them apologize immediately, promising to do better and hoping it doesn’t reflect badly on the dealership. 

It’s the same thing we teach our kids…own the mistake, don’t make excuses, and never include the word ‘but’ in the apology or it will ring hollow to the customer.

Dealership personnel, especially F&I staff, are there to help customers drive off in the car of their dreams (or close anyway) and to make the process as easy and enjoyable as possible. Addressing F&I mistakes quickly and using those situations to help make staff better will always pay dividends.

The post Don’t wait to correct F&I mistakes – Acting quickly benefits everyone appeared first on CBT News.

If your dealership has been making a concerted effort to hire more from the Gen Z pool of job seekers for your F&I positions, there are a few keys things to keep in mind. It’s important to really dial into what makes this applicant tick and what they respond to when looking at a job opportunity.

Who is Gen Z?

Gen Z’s timeline varies a bit depending on what demographer you talk to, but it’s generally accepted that they are the generation born between 1995 and 2010. They are the largest generation behind Millennials and Boomers. 

They are just now moving into post-college roles and taking their first moves into a career and represent about 25% of the current workforce.

They grew up connected to everything…they were the first generation to grow up with smartphones and all manner of ‘smart tech’ and they were the first to be immersed in social media. They have their finger on the pulse of what’s what in trends and navigating life in an online environment.

What does Gen Z look for in a workplace?

Dealers need to understand what truly motivates Gen Z employees as they begin their search. This generation values work-life balance, flexible schedules in the post-COVID world, and growth opportunities. They are highly motivated by a sense of purpose and typically want to work for companies that align with their values. 

With F&I, flexible schedules are not likely other than a weekend day and a day off during the week for most dealers. F&I is a mission-critical role and Saturdays are generally all-hands but offering flexibility the rest of the week will be important to offer. Be clear about what you can offer when advertising the position and in the interviews.

Dealers that are active in their communities will attract more Gen Z talent as well. Purpose-driven businesses that make it clear what they do both on a local scale and even national can be appealing to this younger generation of employee.

The role of tech and the Gen Z employee

A generation that grew up with smartphones and social media is also the most tech-savvy. They expect their workplaces to up-to-date and modern – be sure your dealership has all the latest tech to help them make all their F&I tasks as easy and efficient as possible. Detailing these platforms up front shows the Gen Z candidate that they will have tools available to them to make their jobs easier.

Skills to look for

Focus on ‘soft skills’ when assessing Gen Z candidates. They are generally known for their strong communications skills and ability to collaborate effectively in teams, which helps in F&I. Consider using behavior-based interview questions that can shed light on how they may react in situations that likely arise in F&I. It can be stressful in the box.

What they want…

Gen Z wants a competitive compensation structure and benefits packages (who doesn’t, right?) so it’s important to look at the current F&I comp plan to see if there are improvements that can be made on the commission-heavy nature of the job. Gen Z doesn’t seem to mind the commission model if it allows for growth in income and realistic benchmarks.

The generation has been saddled with one of the highest amounts of student loan debt, so they are looking for some sense of financial security that helps them get ahead of those obligations. Inflation hasn’t helped either with many in the generation struggling to even find housing that’s affordable. Give them a shot at making a good living.

Gen Z also places a high value on DEI in the workplace. The car business has had their issues in decades past, but today’s dealership environment also sees the value in diversity and inclusion. Your dealership will have more success finding great Gen Z candidates for F&I if they see you’ve invested in making the environment one where they feel comfortable no matter who they are or what their background is.

This generation also looks for career growth and training/mentoring. They want to learn and be successful but will lean on the dealership to help them be their best. Few will come in the door with dealership or F&I experience…this is your store’s chance to mold them into the rockstar F&I managers you need. 

Sociologists and demographers like to say the ‘next generation is nothing like the ones that came before’ but in this case, they are right. Gen Z is not at all opposed to working in the car business, but they want growth, good income potential, and an environment where they have a chance to learn and succeed. 

Manage to offer all of that and you’ll get young F&I managers that could be with you for years to come, providing a bridge to younger buyers and helping to take your dealership into a more profitable future.

The post How to be ready for Gen Z F&I applicants appeared first on CBT News.

For many F&I managers, it’s not the ideal scenario for making a healthy PVR. For some, it’s almost as bad as the dreaded ‘cash deal’. Lease terms are generally 24-36 months on average and that makes it harder to sell a VSC since the factory warranty will cover them until turn-in.

There is no traditional finance reserve you can bump up for extra PVR and other menu items are tougher to sell since most don’t want to add a dollar to that prime advertised payment that got them to come into the dealership in the first place.

Can you overturn the common objection of ‘I don’t need that…I’m not buying it after all’? Yes, you can.

Criminals are getting better at being able to create fraudulent state driver’s licenses and often use stolen Social Security numbers or other falsified personal info to secure quick approvals. 

Here are some simple strategies you can use to make leases in ’23 a deal to a home run:

• All-important first question – Ask if this is their first lease. If they have leased before, you know your first strategy is to talk about their experience with turn-in fees. If they have had to pay them in the past, it’s easy to present the ancillaries that will mitigate that loss this time around.
• Deep-dive the fine print – Walk them through the lease obligations in detail and make sure they are aware of the exact costs that they are responsible for at turn-in if this is their first lease. Here is where you start to tie in the specific protections to counter each obligation like Tire & Wheel, windshield, or PDR. Even key replacement is often a customer obligation if they lose it or it’s damaged.
• Review and ask one more time – If you sense hesitation during the menu presentation, ask if they understand the terms and scenarios where they could be financially responsible. Some customers may mentally check out at this point and just want the F&I part of the transaction to be over but if you gently force them to recognize that they do fully understand wear & tear, excess mileage, and other charges, you have one more chance to pivot back to product.

Customers who have leased before should be able to tell you how much they paid at their last turn in. If they had to pay a substantial amount, your selling process should be easier as they won’t want to incur those expenses again.

• Payment with and without protections – No, this is not the ‘payment packing’ nonsense from back in the day. Letting your customer see what adding PDR and key replacement will do to the payment immediately helps them understand how economical it can be to have protections in place to help at turn-in. With the average lease payment in 2022 coming in at $578, your job is to show that you understand that every dollar matters but that it’s equally important to help them not have to get hit with a substantial bill at the end when they may not be able to afford it.

• Build a custom lease package – Your dealership can attract more local shoppers to your lot with a strong ‘Why Buy Here’ value proposition. If every lease from your store comes with a Protection Package included for a flat price, it gives shoppers the upfront transparency they look for now. They can see what the protection is, how it’s designed to help them, and know that everyone pays the same for it no matter what model is leased.

Lease customers are always going to default to ‘I don’t need that’ by virtue of the type of transaction it is but that doesn’t mean all is lost. Strong profits can be made if you approach every customer with the right questions and offer products that make sense for the limited amount of time the customer will be driving the vehicle.

The post Strengthening the lease proposition in 2023 appeared first on CBT News.

Who likes meetings? Not many of you reading this right now have department meetings at the top of your list of fun things to deal with every day at the dealership. Most feel like a waste of time and just another excuse to rehash topics that could be handled in an email. 

For dealerships, the typical meeting is usually focused on the sales floor to prepare for customers coming to the lot or follow-up from online inquiries. It’s all about getting focused and ready to move units. 

What about F&I meetings? If your dealership conducts these meetings for F&I staff, the hope is that they are always useful and engaging. If they’re not, you risk making these meetings just as boring and irritating as those we mentioned above. 

Make F&I Meetings Positive and Valuable

Conducting a weekly meeting in F&I doesn’t have to be a chore. It can be a beneficial time to go over both department and individual goals, updates on compliance issues, reviews of pending deals, and even training opportunities.

Criminals are getting better at being able to create fraudulent state driver’s licenses and often use stolen Social Security numbers or other falsified personal info to secure quick approvals. 

After all, F&I drives high profits for every dealership and should be 100% focused on maintaining high PVR and building clean, airtight deals. 

The ‘how’ is key here. Are they scattered each week with no real agenda? Is it a fly-by-the-seat-of-your-pants kind of thing? Does it become a time to complain and little else? 

5 Ways to Have Your F&I Staff Actually Look Forward to the Next Meeting

We’re going to look at five ways that your dealership can make F&I meetings enjoyable, informative, and inspiring (yes, inspiration is possible!) –

1. Clear Objective Each Time: Establish right from the start what the meeting will be focused on, what the goal of the meeting is, and what outcomes are expected. If pending deals are the topics, stick to that by detailing what’s still missing to get approval, solicit advice from others if it’s a tough deal, and move on to the next deal. Don’t stray from that goal of going through each pending deal. If specific goals are the topic like trying to set a PVR bar a bit higher in the new months, then that’s what you discuss at length. What is that PVR goal and how do we get there? You don’t let the group steer off-course. Clearly defined goals help give meetings more impact.
2. Agenda for Better Flow: Be sure to organize multiple topics if the meeting is going to address more than one thing. Allocate time to each topic to help stay on track and keep tangents to a minimum. This may sound a bit strict but initiating a hard stop between topics will be much appreciated by staff who need to get on with their busy day.
3. Make Sure the Right People Are There: If your meeting is about helping sales close more deals, then have salespeople in the meeting. Don’t exclude them. If the meeting will focus on a deal refresher to help make the funding process easier for the back-office staff, then invite the back-office staff to be a part of the meeting. It gives them a voice in the topic and shows them that your F&I staff values their input.
4. Everyone Participates: No wallflowers allowed. Make it clear that every F&I meeting is a chance to have their voice heard and that feedback and respectful opinions are always welcome. Staff should be comfortable asking questions and seeking clarification without fear of being interrupted or criticized. No meeting ever succeeded in complete silence.
5. Follow-up is Required: Every F&I meeting, regardless of the agenda and goal, should always have action items to follow up on. How did things get resolved or what steps were taken to handle this problem? Did everyone act based on the result of the meeting?

Following up on these goals is critical to staff feeling like the meeting was not a waste of time and that changes were made, or goals were achieved. Management follow-up shows the staff that even they take the goals of every meeting seriously.

F&I meetings are the perfect chance to refocus the team, fix things that are broken, and give staff a voice in things that matter to them. You never know…your staff may actually look forward to them and wouldn’t that be amazing?

The post How to make F&I meetings a home run for everyone appeared first on CBT News.

We all rely on ‘social proof’ to help us know where to spend our hard-earned dollars. Name one business or product you have considered in the past few months and think about how many online reviews you looked at.

Before trying that new restaurant or that new oil change place down the street. We all do it.

Your dealership and more specifically, your F&I department, should have this as a focus when looking to increase positive online reviews. Yes…F&I will be reviewed, too.

Dealerships, unfairly or not, have not always enjoyed the best reputation in their communities. Over the decades, customers have found more to complain about than to compliment.

Until the last decade or so, the complaints were spread via word-of-mouth or the occasional local newspaper article. There was no place to shout to the masses and like it or not, tools like Google reviews have become that virtual rooftop to shout from.

Speaking of Google, Does It Really Matter That Much?

Criminals are getting better at being able to create fraudulent state driver’s licenses and often use stolen Social Security numbers or other falsified personal info to secure quick approvals. 

Yes…dealerships that ignore the power of online reviews do so at their own peril. Google reviews specifically represent 73% of online business reviews according to a 2022 study. It doesn’t matter if your store is an OE franchise or small, independent used car dealership…Google reviews can, in many ways, make or break your traffic and reputation.

And it’s no different in F&I and how customers will weigh in on their experience in your department. Good reviews for the step in the car buying process people tend to hate the most can go a long way to helping more buyers feel comfortable coming into your store.

What Can Your Dealership Do to Increase Positive Reviews for F&I?

The simple and most obvious answer is consistently offering your customers a top-notch buying experience and a quality F&I experience. Do things differently than most customers expect when they walk into the office to finish the transaction. Bust the stereotypes.

But it goes beyond that.

Try these simple steps with every customer to help increase the amount and impact of your Google and other online reviews…

• Walk them through the steps – Most customers may say they know how to do it and perhaps they do but it doesn’t hurt to walk through it while they are in F&I before they leave. Since 9 out of 10 people have a Gmail, this should be easy.
• Tell them to name exceptional staff – If your staff has delivered a great buying and experience, ask your customers to name those staff members. Seeing a Salesperson or F&I Manager’s name in lights helps increase trust and helps to put a ‘face’ on your dealership. And imagine how your staff would feel seeing their name attached to a 5-star review.
• Don’t let negative reviews sit too long – A study showed that 53% of reviewers expected a response to a negative review within a week. Many fall short of that or, worse still, never respond at all. Don’t let those opportunities go by without addressing a negative comment. They are not going to be pleasant to address and could be an unfair or inaccurate comment, but it should never be ignored.

If other car shoppers see your staff is responding and offering to make it right in some way, it bolsters the trust your local community has in your dealership. You may never be able to truly ‘fix’ a specific issue but if you show that you care enough to acknowledge the concern, it goes a long way.

Most online reviews of dealerships will typically focus on sales and the service lane but there’s no reason why dealerships should not also be doing everything they can to make sure F&I shines in reviews as well.

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