I was recently asked to share any recent innovations that I was aware of in F&I, an interesting question that got me thinking. 

A simple definition of innovation could be creating something new and unique. Which begs the question: What is completely new and unique in F&I? Certainly, we could discuss how technology has impacted F&I over the years, but something completely new and unique in the F&I space doesn’t come along every day. To me, better versions of something that already exists are updates more than innovations.  

It occurred to me that I would not describe any of the high-performing F&I managers that I know as innovative. One trait that they all do share, however, is their ingenuity. They don’t concern themselves with creating something new. They concern themselves with creating new ways to use what they already have. Ingenuity could be defined as being cleverly inventive in ways to utilize the resources that already exist. 

Most great F&I managers I know are just that, cleverly inventive in how they utilize the resources they currently have in technology, people, processes and products.

Technology

You would be surprised at the number of F&I managers who utilize only a fraction of the capabilities of the technology they interact with every day. Because I interact with F&I managers of all experience levels each month, I have the advantage of learning about the functionality of different menus, customer-relationship and dealership-management systems. In every F&I management certification course I facilitate, the function of a menu, or CRM, or some other F&I tool is shared by a participant, and without fail there is someone who will be surprised that the system they currently work with every day has the functionality  that was shared. Dealers pay for 100% of the functionality of the systems you use each day. Take the time to know your technologies’ user interfaces and full functionalities. If you do, it will save you time and make you money.

People 

Every dealership employs people with many years of experience. Look around you – who are the people who have been performing at a high level over an extended period? When you are looking for answers, advice or solutions, talk to them. Identify those who have high potential and who want to improve or move up in the organization and help them achieve their goals. There is knowledge and ingenuity in these people – tap into it.

Process 

High-performing F&I managers understand the value of efficient processes that focus on improving the customer experience. It has been said that “time kills all deals.” I have a different take: The longer the deal takes, the shorter your gross profit. As F&I managers, we need to constantly be looking for ways to improve our processes and make them more time-efficient, and hopefully in turn a better experience for the customer. If your processes aren’t working as designed, determine if it is the process itself or if it is compliance with the process that is the problem. Then together with all stakeholders, including customers, discuss and implement ways to improve. 

Products

I believe product knowledge along with people knowledge is a powerful combination in F&I. Utilize your ingenuity when guiding your customers through the product enrollment decision process by offering them choices in the product’s coverage options, term, mileage and deductible to achieve payment and budget goals. Most customers will benefit from owning the coverage, convenience and peace of mind the products we offer provide. Offering a shorter term or higher deductible may help them see the value in what was originally offered or be the solution they need to enroll. 

Lastly, there is another very important, impactful and ingenious way to improve every F&I department’s productivity, and that is for you to fully utilize all the skills, knowledge and potential you already possess. Our priority in F&I is to serve the sales department by delivering the vehicle. Be the F&I manager who is cleverly inventive in figuring out the best deal possible for all stakeholders. Ingenuity in F&I is about making the most of what you have with technology, people, process, products and your ability every day.

John Tabar serves as executive director of training for Brown & Brown.