2021 has been both an interesting and exciting year within the retail automotive business. Despite the pandemic, civil unrest, and shortages of every kind, dealers have been making more profit with less inventory.
In this episode, Becky Chernek shares her advice about how to Break F&I Records in 2022 and beyond so that car dealers are better prepared with a dialed-in process from first pencil to closed deal.
What we discuss in this episode:
Becky explains why 2022 is going to be like the Chinese year of the tiger — how many car dealers are blinded by how well they performed in 2021 despite there being a pandemic and shortages.
Can dealers sustain the same or more profit in 2022? Can dealers reduce charge backs?
If dealers aren't doing everything they can to deliver massive results for customers, things are about to get real.
Winning deals starts at the desk — we all know that deal starts with the first pencil.
Why it's much better to have a customer close on a base payment than not
Are paper F&I menus better than digital menus? Some seem to think so, but it really comes down to whether or not you are presenting the menu for the right reasons or not.
Compliance is a big issue to watch out for not just in 2022 but in years to come. It's important to be on the lookout for poor behavior and to look for those deals that just seem too good to be true. Compliance issues will cause problems for your dealership and create blockers to your success moving forward.
The first step to creating a solid F&I process is to write it out. Define how deals will get into the office. Define what's allowed and what isn't so that you never have to wonder how deals make it from the desk to your office.
In the retail car business, there are actually more people who can mess up a deal than those who can make one. Shot-gunning deals generally does not put more deals together.
Getting a deal should never be about shot-gunning to see what lender will pick it up first.
Every deal counts today. There's not time to get complacent, not for you or your customers. Verify every deal, make sure it checks out, so that you can maximize the deal on the front and back-end.
It is critical that the F&I manager meet with customers before bringing them into the office. Not just an introductory handshake, rather, verifying the deal for accuracy and going over the credit app line by line.
Darwin provides a great digital menu, but relying wholly upon it and nothing else leaves many gaps in your F&I process. Think about it, nothing can replace the importance of building a relationship of trust with the customer and clearly articulating the menu in a way that shows you understand who you are speaking with.
Becky suggests looking up Jeffrey Gitomer, who is as authentic as they come. He's written several books on sales, and Becky praises his down-to-earth, human approach to sales. Check out his information about objection prevention and objection cure.
It's your job to make lenders want to buy your deal, and the best way to do that is to provide enough compelling information that makes them look past the credit score.
If you want to increase F&I profit, you need to think about developing strong lender relationships. You might need to do a better job to justify the rate, the a lender relationship is about the bigger picture.
If you don't have a written strategy, it is going to be impossible to execute the way you know you want to in 2022. It won't happen on a whim and prayer.
Regardless of whether your hands are tied by a desk manager or old-school management, there are things you can do to assume control in F&I.
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Connect with Becky Chernek:
LinkedIn - https://www.linkedin.com/in/beckychernek/
Facebook - https://www.facebook.com/rebecca.chernek.1/
F&I Today with Becky Chernek - https://www.facebook.com/groups/260984864044461
Website - www.chernekconsulting.com
