On today’s Tip of the Day, Becky Chernek talks about the benefits of bringing in an F&I Manager in order to get a second opinion on a deal before finalizing with your customer.
Becky Chernek: Hi, this Becky Chernek with your tip of the day. Whenever the F&I manager gets on the desk, it often creates better deals and maximizes profits. Four eyes will always be better than two. Sitting up at the sales desk creates synergy, and is a reminder of the sales manager not to give up the F&I profit. Get the customer on the right car the first time out. Review the credit criteria with the sales manager. Maybe the customer would be better suited for a lease than a buy, or a new car with a sizeable rebate instead of a used car. And don’t forget, your sales people love to talk the desk into penciling deals at extended terms on buy rates with no money down. And for this reason, make it a point to train salespeople by pointing out the benefits to shorter terms with money down. You’ve seen it way too many times. Sales managers who throw deals against the wall hoping to get the deal approved on a whim and a prayer. Often, these sales managers lose out. Some of these guys have never been in F&I, or if they’ve been there, they have forgotten everything that they’ve learned.
Besides, banks are changing all the time, bringing on these new rates and terms and advances. Over the last three months, banks have changed the way that they buy deals. How could you ever expect your sales manager to know the rates if you aren’t there to help them out? These deals sell the… hold profit, and often are stripped out on the front and the back. I realize no one makes a dollar without selling a car, but if you can’t draw a profit from it, or if you’re always in the hole because of it, what good does it do overall? Nothing is worse than delivering a vehicle and selling product, only to unwind the deal the following day or resign without the products. I’m convinced you can still sell more cars and maximize those profits with, when everyone works together with the same goals in mind, and you’re consistent in your practices.