Recently, a video by TikTok user Molly Baxter shared a shady business practice perpetrated by a few F&I managers that received thousands of views. This should get your attention! Baxter’s video should tell you exactly why customers are walking into dealerships with checks made out for the exact amount; they’re fed up with the games.
On this week’s episode of F&I Today, host and president of Chernek Consulting, Becky Chernek discusses how TikTok videos and other social media platforms are holding F&I managers accountable. In Baxter’s video, she describes how some less than honest or uneducated F&I managers add points to a customer’s interest rate when converting the financing to the dealership. They will tell the customer that although they have already been pre-approved by their bank, the same deal can be made through dealership financing. For most buyers, dealership financing is the ultimate in convenience because it means one less trip to the bank to finalize the transaction. But in some cases, instead of matching or beating the interest rate, the dealership actually inflates it.
Is this a practice you advocate at your dealership? If so, the question you have to ask yourself is, does it make any sense? Why would you endorse converting the customer to your financing only to charge them more than their bank would?
Did you enjoy this episode of F&I Today with Becky Chernek? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at firstname.lastname@example.org.
Car Biz Today, the official resource of the retail automotive industry.