23 Sep Easy Ways to Reduce (or Eliminate) Chargebacks in F&I
There is nothing more demoralizing for an F&I manager than finding out they had chargebacks. It’s the worst. It can put a serious dent in a commission check and casts a shadow on the selling strategies of the F&I department.
How do you help your F&I staff guard against chargebacks?
- Go Heavy on Education Online – Offer your buyers a chance to learn more about the F&I products available to them early on. A recent study by CDK Global revealed that over 60% of consumers are more comfortable starting their process of buying online…so why not make sure they can see your F&I products?
- Make Training a Priority– If your F&I managers are trained in the latest ‘soft-sell’ techniques, they should have no trouble making the connections necessary to put the buyer at ease and safeguarding against any doubts that the products they choose are right for them. It’s about educating, not selling.
By asking the right questions upfront, buyers should leave the F&I office feeling like they are comfortable in their purchase and that they got all the information they needed either way. No need for a cancellation because they feel confident as to WHY they bought it. Proper training is how you get there.
- Follow Up is Your Friend– There are those F&I vets out there who believe once the customer leaves the office, you don’t speak to them again unless there is a problem with the loan, or some other unforeseen issue related to the contract. But what if a simple follow up call could help reduce the chance that they cancel a product a week or two after the sale? It’s a simple but powerful way to make sure the product sticks.