F&I (finance and insurance) continues to be one of the most important departments in the dealership, driving both revenue and customer satisfaction. But just as the rest of the car industry has rapidly changed over the last few years, so too has automotive financing, making it more important than ever to stay on top of the latest trends in the sector.
On this episode of Driving Solutions, host Jim Fitzpatrick is joined by Scott Gunnell, president of the JM&A Group. Under Gunnell’s leadership, the JM&A Group, now celebrating its 45th year in business, has become one of the top F&I innovators in the retail automotive sector. Now, Gunnell shares his insights into the current industry landscape and how his team strategizes to take financing to the next level.
Key Takeaways
1. Affordability remains a challenge for both F&I departments and consumers. Even as prices have started to fall under higher inventory levels, credit access remains restrictive, and most subprime buyers are still priced out of the market. Addressing this challenge means that dealers and their personnel must extract as much information as possible from their customers to ensure they are matched with the best car for their needs and budget.
2. In the long term, Gunnell expects the F&I experience, both online and in-store, to be the primary focus of both dealers and innovators in the space. Many consumers feel that the process is unnecessarily complicated and disconnected, creating redundancies that require buyers to repeat steps in the dealership that they may have already completed through the website. Solutions that provide a seamless experience, one that reduces friction between digital and in-person shopping methods, will be necessary to keep the business successful in the coming years.
3. Regulatory compliance also remains a challenge for F&I departments on both a short and long-term basis. Gunnell notes that consumers are still calling on government agencies to address financial matters in the retail automotive sector. Notably, the Combatting Auto Retail Scams (CARS) act, originally scheduled to enter effect this summer but currently postponed for a court review, would require dealers to invest a substantial amount of time and effort into keeping car buyers informed through every step of the sales process. To avoid heavy-handed legislation, the car business must employ solutions that also improve F&I transparency.
4. In order to address the challenges, Gunnell explains that JM&A Group is continuing to focus on virtual F&I and make improvements to the transaction process that supports dealers. He adds that data will play a key role in developing new processes that mold the financing experience based on the consumer’s needs and preferences.
5. Gunnell recommends that dealers implement changes that connect the different steps in the sales process with the F&I process. Removing repetition and keeping the customer as informed as possible throughout their entire experience, from shopping online to taking the vehicle home, will be critical to keeping stores competitive in their market and in compliance with government regulations.
6. JM&A Group is continuing to invest in partnerships and services that will help dealership F&I departments navigate the landscape. The firm recently partnered with the training platform RockED to provide convenient and comprehensive financing education for dealer personnel. Mosaic is helping retailers guarantee compliance, while the company’s collaboration with J.D. Power has given more peace of mind to consumers. The brand is also constantly improving its other offerings, such as fixed-ops consulting and F&I training. To see what innovations the JM&A Group has in store, visit their website here.
"Customers want to come to the dealership. As I mentioned, the millennials and Gen Z—data proves that they want human interaction. What they're looking for is that tailored interaction that's personalized based on the way they want the transaction to go. — Scott Gunnell
