There’s nothing worse for an F&I manager than thinking that a customer is paying cash for a vehicle, only to realize later that they received financing and insurance from an outside lender. It’s a huge missed opportunity, and in today’s episode of Training Camp, Adam Marburger shares strategies to tackle these challenging scenarios. Marburger is a black belt in Brazilian Jiu-Jitsu and F&I, and his helpful tips will help teams enhance their F&I performance to obtain the rank of black belt as well!
Marburger highlights that while true cash deals–where a customer writes a check directly from their accounts–are extremely difficult to convert, outside lien cash deals are easier to convert.
These occur when customers arrive with checks from lending institutions, often bundled with competing products like service contracts, wheel and tire protection, or gap insurance. Marburger describes this scenario as a financial and strategic loss for dealerships, urging F&I managers to take a proactive approach to avoid such outcomes.
The cornerstone of Marburger’s advice revolves around improving communication across dealership teams and engaging with customers early in the transaction process. He outlines three critical steps:
Communicate with your sales desk at the highest level
Collaboration between the F&I department and the sales desk is essential. It’s critical to get involved early in the transaction in order to better understand how the customers intend to finance their vehicles before the deal progresses. This can prevent surprises, such as checks from outside lenders, and gives F&I managers an opportunity to offer better financing solutions.
Communicate with your sales team at the highest level
The F&I department has a very limited amount of time to interact with the customer, whereas salespeople spend the most time with customers. This perfectly positions sellers to gather key insights into their financing preferences. Marburger encourages F&I managers to conduct regular training sessions, one-on-one meetings, and monthly touchbases with sales associates. By educating the sales team about the value of F&I products and clarifying the differences between cash deals and outside liens, F&I managers can foster a collaborative environment that supports dealership goals.
Get involved as early as possible in the retail transaction
Timing is everything in F&I, and it’s crucial to quickly uncover how a customer is going to transact in order to successfully convert them. If a customer says that they’re going to pay with cash or a check, it’s important to uncover whether or not it’s a true cash transaction or outside cash lein.
A straightforward question to ask the customer that quickly clarifies the payment method is: “So, there’s no lien that I need to record on this?“
If it’s determined that the customer is financing through an outside lien, it’s important to explain that the dealership has preferred lending solutions with abundant options that could benefit their financial scenario.
It’s important to realize that a customer’s wariness may be due to negative experiences with other financing institutions in the past. By taking the time to explain the benefits of preferred dealership lenders—such as competitive rates and streamlined processes—F&I managers can position themselves as trusted advisors.
"When banks compete, customers win." – Adam Marburger
