Why F&I Can Benefit from Moving to Preloaded Ancillaries in 2023
F&I managers have one of the hardest, if not THE hardest, job in today’s dealership. Ask anyone who has ever been in ‘the box’ what the one word is that can describe their job and they will likely say ‘pressure’.
Pressure to maintain a high PVR. Pressure to get every piece of documentation executed flawlessly. Pressure to keep the CSI high so the owner and the OEM stay happy.
Yet with an overstuffed menu of products, it can be a challenge to focus on the few products that yield the highest commission for all of this effort.
Add to that the challenging economic environment every buyer is facing with interest rates rising and monthly payments being the highest ever. The F&I staff is having to navigate a delicate situation with every buyer while trying to add anything they can to what is already a heavy financial burden.
What if there were a way to lighten that load, make adding important protections the customer really needs, and help the F&I managers actually make MORE money?
Yes, we said it. Actually, we’ve been saying this for a long time. We have found that there are several benefits to moving the ancillaries out of the F&I office and some that may surprise you.
F&I Gets Precious Time Back
If the appearance package (and more) are preloaded as a Line 1 add on the buyer's order, your F&I managers get the rare gift of having more time to focus on the products that will help them make more commission. VSC and GAP historically have a higher margin for profit and that means more commission at a time when your F&I managers could really use it.
Having the time to ask the key questions to help sell those products is invaluable and now that many deals are done virtually, F&I managers can streamline their presentations to zero in on just those products. They get the time they need because they don’t have to roll through a bloated menu and risk losing the attention of the buyer.
If your store offers a preloaded appearance protection bundle with basic coverage, F&I is set up quite nicely to upsell the buyers to a longer protection term. Offer the preload at 12/12k as a basic coverage and it easily tees up F&I to make a quick transition (remember...we are saving time here) to the 3/36k or 4/48k coverage. It’s easy since the buyer already understands the importance of the protection they get upfront and with one or two quick questions, F&I staff can offer up longer coverage.
These are plenty of quick upsell opportunities for F&I to bump up the PVR and get more money in their own pocket by having preloaded basic coverages available.
Higher Sales, Higher Commissions
Dealers who offered preloaded bundles are positioning themselves as the ‘go to’ for local car shoppers. This is a small but powerful add that can enhance the ‘Why Buy Here’ value proposition and help increase sales. It’s almost like offering your own exclusive CPO-like advantage.
If a dealership marketing team rolls out this ‘every car’ exclusive protection the right way, sales will increase and F&I managers will be busier with more chances to increase their own commission even in a tough market.
Now is the time to be aggressive in marketing your dealership and clearly defining for local shoppers what makes YOUR store different. Do that and the sales will increase. No, maybe not to pre-COVID levels but close.
Less Stressful Presentation
F&I deals with a tremendous amount of pressure to help carry the profit load at the dealership. If their menu is pared down to 2 or 3 products instead of 9-10, that takes a huge burden off their shoulders. Any F&I manager who has had to quickly race through a huge menu knows how tough it is to close on ANYTHING when they have to sell EVERYTHING.
Preloading ancillaries into a simple and inexpensive bundle upfront gives F&I managers room to breathe and present the products they way they were trained to. Consultative, relaxed, and dialed into the buyers needs. Less stress, more money.
Happier F&I Staff
Making sure every car on the lot has a preloaded bundle offers many benefits but don’t overlook the way it helps your F&I managers make more every month. It may seem counterintuitive at first but when you look at the time savings, the increase in sales/deals, added upsell opportunities, and the reduction in the stress of having to present so much at once, F&I is one of the big winners here.
ExoGloss has built an easy and inexpensive preloaded package, ExoBundle, that can be added remotely to every car on the lot. It brings together everything from PDR to roadside assistance to interior/exterior protection and more.
Click here to learn more and feel free to reach out to see how we can help you put more money in the pockets of your F&I managers.
Economic uncertainty is not the time to stick your head in the sand…it’s a time to be prepared to do things better so that you can stave off any potential crises if they do pop up.
Work from home is a thing now. For the last few years since the start of the pandemic, companies have been more open to the idea of working from home as a way to reduce turnover while maintaining productivity. For dealerships, there has been an interesting and unexpected benefit from the work-from-home that many have not seen coming. Car buyers who are no longer commuting to an office seem to be spending more both on the price of a vehicle and willing to spend more on F&I products to protect them.