What are F&I Services?
Finance and insurance (F&I) products and services are vital components of a customer’s vehicle purchase and ownership experience. As the landscape of the automotive industry continues to change, dealers are increasingly interested in how their F&I departments can change their business for the better.
If you’re part of a dealership and interested in learning more about F&I, Superior F&I Solutions, a full-service automotive consulting company, created this blog post to share the foundational knowledge you need to ramp up your F&I offerings.
What is F&I?
F&I stands for finance and insurance. Depending on the context, people in the auto industry may be referring to finance and insurance products or a dealership's finance and insurance department what they say, “F&I.”
From appearance protection to extended service contracts, there is a whole suite of F&I products that a dealership may offer, including, but not limited to:
Roadside Assistance Protection
Tire and Wheel Protection
Ultimate Vehicle Protection
Vehicle Service Contracts
Vehicle Theft Protection
Windshield Protective Coating
Antimicrobial Solutions
Environmental Protection
GAP Protection
Key Replacement Programs
Paintless Dent Repair
Pre-Paid Maintenance
These products ensure customers are getting the precise automotive packages they want and need.
F&I departments take on a wide range of responsibilities, including presenting and signing contractual agreements with buyers, communicating with lenders, negotiating loan terms, submitting Department of Motor Vehicles (DMV) forms, and checking insurance documents. It’s generally a customer’s final stop in the car-buying journey.
An F&I manager runs the F&I department. They showcase the dealership's F&I products, help negotiate loans on behalf of the customer, and show loan repayment options.
Why Are F&I Departments Important?
At a foundational level, F&I departments are critical to dealerships as it’s where customers pick a financing plan. Furthermore, it’s the department that handles the legal side of selling a vehicle, meaning it ensures you’re compliant with the rules and regulations of your state.
With the right F&I products, a dealership’s F&I department can be the key to long-term customer loyalty, customer satisfaction, and returning business.
Why Is F&I Training Critical?
F&I managers need to know the ins and outs of every F&I product and service they offer. Their discussions with customers need to be consumer-focused, be transparent, and highlight value. These products offer long-term protection and ensure customers receive top-quality repairs and maintenance. However, all too often, the messaging around these offerings fall flat.
Every dealership should invest in training for their F&I departments to ensure customers are getting the most out of their vehicles and you're pulling in more business.
At Superior F&I Solutions, we train using a menu to help F&I Managers present every product that's available. We have learned it is impossible to prejudge all of the customer's needs and past experiences. It is also necessary for compliance. Using a menu, your F&I manager can customize terms and coverage based on a customer’s exact needs.
Moreover, train your service department to sell protective products. Remember, your technicians are seen as authorities in the field, which means your service customers are likely to trust them. By being transparent about what the customer could use for better vehicle protection, your technicians have the opportunity to provide an enhanced service experience.
There are also some telltale signs that your F&I department is in need of training. Consider retraining your F&I staff if your:
Sales are lost due to long wait times
Sales documents are disorganized
Dealership has compliance issues
Customer satisfaction is declining
Ultimately, think less about selling and more about educating. When your customers thoroughly understand the benefits of the product or service, they're more likely to make a purchase.
Benefits of an Optimized F&I Department
A well-trained F&I department is one of the most critical parts of the vehicle-buying journey. In conjunction with an exceptional F&I manager, it will:
Ensure Compliance: Your F&I department ensures your dealership is following all rules and regulations. This legal compliance is critical to you and the customer and should be the a dealership’s top priority
Create a Better Customer Experience: Improve customer satisfaction and protection with a suite of F&I products and services. F&I managers can give customers a peace of mind by giving them the option of minimizing costs through extended service contracts, prepaid services, and insurance.
Improve Customer Loyalty: Through better customer experiences comes improved customer loyalty. Many extended service contracts, services, and insurances also encourage customers to return for maintenance. This creates more opportunities for relationships to grow.
Enhance Dealership Brand: Offering the right F&I products and services can help amplify your dealership's brand, improve customer satisfaction, and build trust. When people think of the value a dealership offers, you want to be the first one they think of.
Foster More Sales Opportunities: By increasing customer satisfaction and safeguarding investments, F&I products can create meaningful long-term relationships between buyers and dealerships.
How to Decide Which F&I Products to Offer
These offerings help customers avoid high maintenance costs, find the financing options they need, and make more money upon trade-in. To determine which products and services best fit with your dealership and the needs of your ideal customers, consider:
Your area’s demographics
The top-selling vehicle models and price points
What your service department sees most
Hiring an F&I consultant
Make Every Touch Point Count
Every moment you have with a customer is an opportunity to make their experience better. Superior F&I Solutions is here to help you make the most of these moments. If you're ready to get started, drop by our contact page to get connected.
