If you are involved in selling products in the automotive sector, retail or capital equipment sector you will know just how large the F&I opportunity is. Very few businesses including global brands actually pay cash for commodities such as motorcars and contrary to popular belief neither do retail customers. When it is proclaimed that “the customer is paying cash”, the likelihood is that funds have been secured elsewhere enabling a cheque or bankers draft to be made out to the seller. Clearly the F&I function looses out
What we do know is that the banking sector is booming, profits have never been better, so clearly these guys are providing an awful lot of loan capital to an awful lot of customers…your customers and the profits of your F&I function in many cases.
Are your sales people fully conversant with all the F & I funding methods listed below?
- Hire purchase (conditional sale)
- Lease purchase
- Private contract purchase (PCP)
- Finance lease
- Contract hire
- Balanced payment plans
and above all can they qualify customers, present options and close finance business taking account of the following?
- APR and rate base discussions
- The argument against cash
- Write down, cash flow and final payments
Fact. Most businesses in the automotive and capital goods sectors introduce F&I into the conversation at point of order if at all. By this point most customers have arranged their funding and will therefore proclaim that they are paying cash
Fact. Inadequate F&I product knowledge coupled with poor timing and positioning in the sales process could be costing you the value of finance earnings on anything up to 50% of your sales.
Fact. Your current structural investment in staff is likely to mean that any growth in F&I profits can virtually be written to the bottom line
If you would like to maximise your earnings from F&I, our approach and value model will ensure that not only will your sales people and or business managers increase their knowledge of F&I products but also they will be shown how to close more customers and profit from this knowledge.