Fifteen minutes, a quarter of an hour – not much time, really. Unless of course you’re spending 15 minutes:
- Waiting while police run your plates
- On hold with your internet provider
- Waiting for the doctor
- Idling at a railroad crossing when in a rush
Depending on where you are and what you are doing, 15 minutes can be a long time.
Apparently, car buyers think so too. For them, shortening their time in F&I by even 10 to 15 minutes pays dividends. Speedier, yet thorough, F&I processes sell buyers and get them on their way faster (and more happily).
Furthermore, when an F&I manager has more planning time between customers those valuable minutes can be used to better prepare for the next presentation.
A study by MaximTrak shows that shaving just 15 minutes off the typical F&I process is significant. For a dealer who retails 100 units a month, the savings is 300 hours a year. A dealer who retails 250 a month gains 750 hours a year, and a retailer moving 600 vehicles a month adds 1,800 hours to the clock!
Dealers and their customers experiencing this time advantage are using cloud-based F&I e-menu tools to eliminate process waste, redundancies and outdated techniques. Menu software like this helps the F&I manager better customize and organize the F&I presentation and then deliver a compliant and thorough products presentation that customers will easily understand, making their selections more certain.
Trials comparing dealers’ menu software use and no menu use show how potent the right F&I tools can be. The trial showed that service contract sales when presented using an e-menu tool led to a 27% increase in per vehicle retail and 33% increase in penetration.
Not only does e-menu software use boost dealer profitability and save customers time, it creates blocks of valuable time, for which the F&I manager can use to:
- Prepare effectively for the next buyer’s presentation
- Organize paperwork and secure deal jackets
- Review deal profitability prior to the turnover to F&I
- Help a sales associate work more collaboratively with F&I
- Calculate how much better PVR and penetration will be and it’s gain to their pay
For more facts on this topic, click for the new report, “How Cloud-Based F&I Menu Software Systems Boost Service Contract Penetration and PVR.”
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.
- 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
- Fintechs: Are They Creating New Revenue Streams, or Siphoning Existing Ones? - September 25, 2018