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.
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.