When the F&I manager uses a digital-based menu with every F&I presentation, the results achieved are remarkably better than when no menu or a paper menu is used.
A study by MaximTrak of more than a million transactions with utilization numbers evenly distributed on retail, lease and cash transactions compared deals that did not have a menu to deals in which the menu was utilized. The results were stark and consistent—the digital F&I menu delivered Profit per Unit (PVR) lifts of 28% on average in the automotive industry and 33% on average for the for the motorcycle industry.
Even in this new F&I world of Consumer Financial Protection Bureau (CFPB) lender oversight and its ramifications on F&I practices, F&I departments that consistently use the right F&I processes and tools realize superior F&I performance results. F&I managers are finding these tools to be money buttons:
With an integrated and comprehensive electronic menu platform, F&I managers pull deals and immediately begin tailoring a visual product presentation proven to deliver consistent results. The best electronic menus will combine applications used by F&I managers into one centralized workflow.
Interactive sales tools, by explaining the features and benefits of aftermarket products in a compelling way, the customer connects the value of each product and how it can enhance their lifestyle goals.
When implemented effectively, e-rating simplifies and speeds up how quickly F&I can build a more profitable menu presentation. It also eliminates 99.9 percent chance that F&I managers will make pricing errors on the products they present.
Electronic contract remittance speeds up the contracting process. According to the J.D. Power 2013 U.S. Dealer Financing Satisfaction Study, “process innovations such as e-contracting, combined with improvements to dealer support and a solid product offering, contributed to satisfaction increases.”
Digital signature capture speeds document completion. Be certain the one you chose to work with is compliant with the Electronic Transactions Act and the Electronic Signature in Global and National Commerce Act.
F&I processes that lack e-registration are incomplete. E-registration speeds up the registration of contract details to administrative and insurance companies. E-Register systems help to reduce the human error to ensure a smooth transaction from start to finish.
F&I menu systems using e-rating, e-contracting, e-signature, and e-registration enable the F&I manager to build a professional, complete, timely, and accurate presentation. The power to drive F&I profits by using digital F&I tools starts with the push of a button. If you want to add these buttons and grow your F&I profits, contact me.0
From 2003 to 2019, he helmed MaximTrak, a digital F&I platform, which he founded and sold to RouteOne LLC in 2016. Until late 2019, he continued aspresident of MaximTrak and as chief digital officer for RouteOne, bringing to market solutions trusted by dealers around the world.
Jim is widely regarded as a thought leader in business technologies and wealth-building strategies for entrepreneurs and F o rtune 500 companies alike.
He is a graduate of the Babson F.W. Olin Graduate School of Business of Babson College, Babson Park, MA. He is married, with two children.
Latest posts by Jim Maxim, Jr.
- A Better 5-Step Plan to Product Sales Success - March 9, 2020
- Plan, People and Profitability: A Lesson in Chicken - January 12, 2020
- Digitize Your Dealership Operations Now to Be Ready for 2020—and Beyond - October 12, 2018