Industry Voices | How Dealers Can Focus on Best Practices, Financial Stability

In today’s increasingly digital world, the automotive industry faces a growing array of operational challenges. The recent cyber event that affected thousands of dealerships across the country is just the latest example of how dealers, dealership senior leaders and principals must constantly think about the big picture and best practices.

Cybersecurity is certainly top of mind considering recent events, but there are three key areas dealers should pay closer attention to for operational success heading out of the summer months.

Ensuring Tighter F&I Process Integration With All Departments

F&I has proved to be a significant revenue stream for dealerships. F&I plays a crucial role in ensuring customers leave the dealership satisfied, informed and confident in their purchase. However, achieving this level of customer satisfaction requires that every department within the dealership understands and supports the F&I process.

While the F&I office is responsible for managing the financing and insurance aspects of a vehicle purchase, each department touches F&I, including sales and fixed ops. It’s  important that all employees understand their F&I roles and responsibilities. This includes being knowledgeable about product offerings and gathering enough customer information to ensure a smooth handoff to the F&I team.

F&I Training and Communication Across Each Department

The sales team is often the first point of contact for customers, making their understanding of F&I processes and products critical. Dealerships, F&I program providers and/or agents must offer regular training sessions to educate sales staff about F&I products and their benefits. This enables salespeople to introduce these products early in the sales process, setting the stage for a seamless transition to the F&I office.

Dealers must always encourage open lines of communication between sales and F&I. Sales staff should provide F&I with all necessary customer information, helping to streamline the process and reduce wait times.

The service department also plays a vital role in supporting F&I, particularly when it comes to claims and warranty services. Service advisors should be well-versed in the details of various service contracts and protection plans offered by the dealership. This ensures they can accurately communicate coverage options to customers and address any questions or concerns.

Service teams must also understand how to efficiently handle protection plans, working closely with F&I administrators to expedite the claims process, minimizing inconvenience for the customer.

Customer relations teams are instrumental in maintaining long-term relationships and ensuring customer satisfaction. To integrate effectively with F&I, these teams must collect and analyze customer feedback regarding their F&I experience. This information can help identify areas for improvement and ensure continuous process enhancement.

Focusing on Financial Stability

While addressing these key areas for operational success, dealerships must also look for ways to enhance their financial stability and growth as a form of financial insurance and independence to ensure long-term viability and security.

When considering wealth-building programs, dealership principals should thoroughly analyze their current F&I product offerings and market demand. This assessment will help determine the potential benefits and challenges they will face when transitioning into a new program, such as a reinsurance structure, dealer-owned warranty program or hybrid solution. Dealers should work with a trusted wealth-building program administrator to create a comprehensive plan that outlines the program’s structure, goals and operational processes. This plan should include strategies for marketing products, managing claims and ensuring compliance with applicable regulations. These experts can provide valuable insights and support throughout the process.

Once a program type is decided upon, dealers, their administrative partners and agents can ensure that employees are well-trained on the F&I program offerings and processes.

Dealers should also regularly consult with their administrator and agent to review the program’s performance and make necessary adjustments to optimize its effectiveness and profitability. Ongoing evaluation will help ensure the program continues to meet the needs of both the dealership and its customers.

The automotive industry is clearly navigating a complex landscape of challenges – both cyber-related and operational. For retailers,  proactively addressing these challenges is crucial to maintain customer trust and operational integrity. Simultaneously, dealers must explore wealth-building opportunities to enhance their financial stability and growth. By adopting a comprehensive approach to operational success, leveraging innovative business strategies and a strong wealth-building partner, dealers can safeguard their future and thrive in today’s changing industry.