The Case for F&I 20 Groups
The F&I function is changing at a rapid pace. Unfortunately, F&I professionals do not always enjoy the breadth and depth of knowledge about their dealerships and the industry they need to in order to contribute to the bottom line. They often have many questions and few options for finding answers. F&I 20 groups fill this gap.
Dealer 20 groups have been around forever. They give dealers a venue in which to share ideas and best practices. In exchange for their participation members gain insights and strategies to grow their businesses.
F&I 20 groups offer a similar model for the F&I function. They provide a place for managers to exchange ideas to enhance their own professionalism and productivity on behalf of their dealerships. While the group’s activities are not designed to be a training forum, learning about the best F&I processes, forms, and lender resources build the foundation for a successful F&I department.
In the past two years it has been my privilege to moderate lender panels in F&I 20 group meetings. Imagine the benefits of leaders in the lending industry engaged in a 3-hour discussion with a group of F&I managers eager to learn how to get their deals funded. Both the lenders and the managers came away with vital information that strengthened their working relationships. The result is more approvals, more deals, and more profits.
Recently, a dealer asked me if comparison of compensation plans is part of F&I 20 meetings. I assured him that although this topic may be covered in dealer 20 groups, it is not a part of F&I 20 group discussions I facilitate. F&I 20 group agendas do include department production in sales, percentages of penetration, and comparison of average profit on each profit center within the department.
Time away from the dealership is always a concern for both the dealer and the F&I manager. The annual format of 10 monthly teleconferences and two-day face-to-face meetings for the remaining 2 months makes F&I 20 group membership both time and cost efficient. Members and their dealers receive copies of minutes recorded at each teleconference and face-to-face meeting in order to keep everyone in the information loop.
The financial process can account for some of a dealership’s lowest CSI scores. As a result, there are manufacturers looking to turn over the paperwork to sales consultants and eliminate the F&I department as a short-term solution. However, The F&I function continues to be a critical profit source for the dealership. As such, it needs to be staffed by professionals who exercise ethical and effective sales skills designed to increase both CSI and profitability. F&I 20 groups offer a continuous flow of positive ideas. Growth replaces complacency.
What are your F&I producers doing to stay ahead of the business curve? Who do they communicate with on a regular basis about the challenges and opportunities they encounter? How does their performance stack up against your competitors? What are you doing to validate and increase their contribution to the growth of your business?
Find out more about what participating in an F&I 20 group can mean for your F&I department’s productivity and the dealership’s bottom line. Make your own case and witness the difference.
Dealer Marketing, November 2003, p. 14