17 Jun 3 Reason Why F&I Education is Critical to Increasing PVR
Car buyers span 5 generations now and yet there are huge disparities in how much knowledge each generation has with regard to how financing a car actually works. Good news, though, as there are ways to keep your dealership profitable AND help provide valuable education to buyers to help earn their trust.
Gen X-ers seem to understand more about the financing process than Millennials when it comes to knowing how a lender evaluates a loan. Gen X-ers also understand the use of GAP insurance more than their Millennials counterparts. Gen Z is looking everything up online before they even communicate with a dealer. With age and more car buying experience, you would expect the disparity to be greater, but it isn’t.
So, what does this mean? This is an opportunity for your dealership to position itself as a F&I education resource for all buyers. With nearly everyone going online for information and tips on just about everything, your dealer website should provide valuable information and education for buyers, so they truly understand more about the process of financing a car.
Here are 3 ways to increase profits by better educating your future customers:
1) GIve ‘Em the Tools: Use the F&I page as an educational portal for payment calculators (which you probably already use), a glossary of popular F&I terms, and lease vs. buy ROI tools. Interactive tools increase engagement and keep your potential buyers on the website longer.
2) Start Blogging: Blogs are everywhere (after all, you are reading this one right now). So why not have an F&I blog that features a different product each month or bi-weekly? A short piece on GAP with a compelling story to illustrate the importance of it…an article explaining the different credit bureaus and their role in financing, etc. Link or post to your social media channels for a wider audience.
3) Monthly or Weekly F&I ‘Chat’: Offer a F&I ‘clinic’, inviting car shoppers to go online to get their financing questions answered. F&I managers can earn trust with car shoppers by positioning themselves as educators. Trying an online chat for a couple of hours every week can have the same positive benefit. Be available, approachable, and watch trust and CSI rise.