Selling ancillary products is paramount to dealership profitability. Driving results in the F&I department has become central to the modern dealership strategy. The importance of F&I earnings increases as front-end margins compress, interest rates rise, and SAAR cools. With the adoption of digital retail, F&I is moving upstream in the customer buying process.
Tag: digital retailing
Over the past few months, you may have heard the digital retailing buzz. Some dealers wonder if it will impact F&I profits. In a recent article published in F&I and Showroom’s online magazine, Nick Waddell, general manager of Central Florida’s Peterson Toyota of Sarasota, believes that dealers succeed by creating a “measurable difference” in customer experience. Nick has been in the automotive business for nearly 25-years primarily under the Toyota brand. Having a background as a finance director, he became a general sales manager, setting monthly records and mentions the mentorship of great GM’s at Toyota.
A smooth in-store experience is paramount to successfully running with a digital retailing strategy. A smooth online experience should follow them when they show up to take delivery.
If everything is prepared and ready, the customer continues down their painless digital path. If they show up and everyone is scrambling, it further reinforces the negative stereotype that you’ve worked so hard with your digital process to distance yourself from.
It may be hard for to remember a time without the internet, but it was only a couple of years ago that consumers had to visit a dealership in person if they wanted to buy or lease a vehicle. Now it’s estimated that around 86% of consumers start their car […]