30 Oct Some Common Problems in F&I & Why They May Be Happening
In any dealership, there are going to be problems. Low unit sales, bad CSI, personnel issues…the list can go on and on. But when the F&I department has issues, it can be devastating for a store.
There could be any number of problems that could be impacting your F&I department. Here are the most common problems with some insights into why it may be happening.
· Bad CSI Results/Chargebacks – There is no sugar-coating this one. CSI scores can have a big impact on the dealership and serves as a barometer as to how you are meeting the needs and expectations of the customer. Blow this and there is hell to pay.
Chargebacks generally (but not always) mean one thing…a dishonest presentation. The buyer may have been lied to or tricked into buying a product they really didn’t want.
· Low PRU – A case could be made that many of the reasons in the last section could apply here as well. Bad personality fit, sketchy sales ethics, etc. While those factors can contribute to low PRU, there are other reasons while profits are sinking that may not be so nefarious.
A lack of quality training could be a cause. If the F&I managers are not properly prepared to sell all the products the way you want them sold or if they simply don’t have a clear understanding of how to execute a consultative sales presentation, they need better training.
· High Turnover – This problem can be a bit tricky to identify. All dealerships suffer from turnover problems at some point. Salespeople come and go quite a lot but when you start to notice that F&I managers are not lasting long, there are generally two big reasons for it.
Take a look at the compensation plan you offer. Is it realistic based on the mix of new/used or finance/lease numbers at your store? If you are losing good F&I managers, money could be the biggest factor.
Click here to see how TruWarranty can help your dealership sharpen your training in areas like compliance and help provide critical support to your F&I staff.