Here's another reason the job of dealership salespeople is critical: if they don't sell the vehicle, then F&I managers lose the chance to sell their products.
Here's an F&I rundown for people who don't know how critical that department is to a dealership:
What is the job of the F&I manager?
To sell customer vehicle protection, get credit approvals “ASAP” and much more.
Why should the salesperson promote the F & I products?
Your customers deserve the best protection they can afford. If you are intending to stay in this business you must believe in protecting your customer as much as possible.
If they have a problem, you want to be able to say, “No problem” and see to it. A happy client is a repeat client. And most dealerships pay the salesperson a spiff for helping to sell F & I products.
How does the F & I manager get paid?
They are paid the same as a salesperson, a commission on the gross profit of what they sell.
Your F & I Manager can fill in the chart below for use as a sales team training tool.
The average gross profit for an F & I office should be around $500 per customer. This means the F & I manager has to sell three times as much as a salesperson to have a good month end.
| PRODUCTS OFFERED | SELLING PRICE | COST | GROSS PROFIT |
|---|---|---|---|
| Undercoating | $ | $ | $ |
| Paint Sealant | $ | $ | $ |
| Warranties | $ | $ | $ |
| Extended Ser. Contracts | $ | $ | $ |
| Life Insurance | $ | $ | $ |
| Disability Insurance | $ | $ | $ |
| Others | $ | $ | $ |
Two steps for car salespeople to help enhance F & I sales:
Step 1
The salesperson must plant the seed of the F&I products during vehicle presentations and/or demonstration drives. Then you must repeat the information in your turnover to your F & I manager.
Do not talk about F&I costs and rates. That's not your job. Get your F&I manager to give your sales staff a training session on what they sell and all the benefits associated with them.
After you've completed the negotiation process and agreed on a selling price, the next step must be taken to finalize the deal.
Step 2
Solidify the sale with a good deposit on the vehicle your client has selected. That's essential so your client knows he or she has just purchased a new vehicle.
The salesperson has spent much time with the customer, and it's important to set up your F & I manager with a brief review of what you've discussed with them: i.e. warranties, extended service contracts, paint protection, etc.
It's also important to inform the F&I people of your customer's mood or personality. Enhancing your income depends on a clean transition from salesperson to F & I manager.
Two ways to introduce your customer to your F & I manager:
“Mr. Customer, this is Bessy Allen our finance and insurance manager. She'll finalize all of the paperwork and answer any of the extended service, paint sealants, undercoating, etc. questions we discussed earlier.”
“This is Ms. Jenny Lee, our financial service manager. She'll prepare all of your documentation, take your credit information and explain how to protect you new-vehicle investment. I'll see you when you're done.”
Let the F & I manager take it from there. A professional and thought-out turnover increases trust, overall sales and gross profit.
Darin B. George is founder of the Automotive Sales College which conducts training services and seminars He's at 1-888-681-7355 and [email protected].
