MenuMENU
SearchSEARCH

Debating Innovation

Bothered by the response to software companies trying to bring a fresh look to F&I, the editor weighs in with his thoughts on tablet and e-mail menus.

April 16, 2012
4 min to read


We posted a news item on the Website last month that detailed the results of a new study that painted a profitable picture for dealers willing to invest in technology. Conducted by accounting firm Plante Moran PLLC, the report said dealers who do so could realize net profits in the 6 percent range. "The dealer who understands the value of technology in helping to enhance customer satisfaction and service will have an edge that can lead to increased sales and profits."

The study recommended that dealers direct their tech investments toward online sales, social media and security systems to protect their customers’ data. It was under the "Social Media" heading that mobile devices and their impact on sales are mentioned. "Evaluate how to use this powerful technology to build loyalty and showroom floor traffic," the study advised.

I bring the study up because I caught some heat on Facebook for my "Updating F&I" article last month. It was as if my friends in my online F&I world viewed the drive to update the F&I office as an attack on the business manager.

I understand why my F&I buddies are so sensitive. At my first NADA Conference & Expo, my publisher urged me to check out this new F&I selling system designed to allow salespeople to present product on the show floor. I won’t say which company it was, but officials there were excited to see F&I duties moving further toward the front end.

Then there’s the Great Recession. That’s when some dealers began testing the hybrid manager, a concept that combines the roles of the salesperson and F&I manager. Let me just say that Mad Marv isn’t a big fan of that approach, and that’s putting it nicely.

See, guys like Marv will never forget the F&I kiosk, which was supposed to replace the F&I manager by allowing customers to select the protections they want without being sold. But as we all found out, people don’t buy if they’re not sold.

Again, I get it, but I think we all need to take a step back. I know the F&I office has been under attack for decades, and I would never suggest that we lower our guard. But I do think we need to separate attempts at eliminating the F&I office from efforts to update a department that hasn’t seen significant change since the advent of the F&I menu.

And I’m sorry, but the "Why fix what ‘ain’t’ broke" argument isn’t going to work for much longer. Besides, many of you like to say it’s not the menu that sells the product; it’s the producer. Well, if it doesn’t matter whether you’re selling on a napkin or a paper menu, then selling off of an iPad shouldn’t be a big deal, either.

Look, everyone is trying to figure out what today’s Internet customer wants. And I think Marv said it best when he wrote that the only opinion that matters is the customer’s. That was about the only thing we agreed on last month when we debated the mobile menu through e-mail, text, on the phone and even on the magazine’s Facebook page. I get his argument, but I just didn’t like seeing companies being crucified for trying to update the F&I office, which is what was happening.

And besides, your dealers are investing a lot of money on delivering a high-tech experience to customers. Why should F&I be any different? I’m not suggesting a complete overhaul of the F&I office; I’m merely suggesting we examine every opportunity to update the look and feel of the experience we deliver.

And hey, it was only a few years ago that the hottest feature among inventory-management tools was having access to a vehicle history report. We can all agree those solutions deliver a lot more than that these days. But those newer features only took hold after dealers tried them out and provided software makers with feedback.

And we need to do the same, because the last thing we want is our dealer rolling out a new selling system in the F&I department because some tech vendor promised it will sell more products and drive up profits. We all know those promises are the kiss of death when it comes to our payplans, so start talking about these tools in your dealership. Start identifying where they’ll work, how they’ll work and what features you’ll need to make them work.

It’s a great time to be in F&I. Everything is being questioned and analyzed, which means we have the opportunity to write our future. So, let’s get in the discussion, and not let our future be dictated to us.

Subscribe to Our Newsletter
No form configuration provided. Please set either Form ID or Form Script.

More Blogposts

Done Dealby Tariq KamalFebruary 27, 2020

Is Sales Punching a Crime?

BMW is the latest manufacturer to be accused of falsifying new vehicle sales reports, a practice that has led to lawsuits and investigations. Are dealers conspirators or victims?

Read More →
Done Dealby Tariq KamalDecember 12, 2019

You Can Eliminate F&I Managers. You Can’t Eliminate F&I.

The trend toward hybrid sales and finance managers shows no signs of slowing. Dealers who want to close the business office must be sure they don’t shut the door on their customers as well.

Read More →
Done Dealby Tariq KamalNovember 14, 2019

EVs Cost Even More Than You Think

Mergers and alliances among factories are proliferating as the demand for mass-market electric vehicles increases and the cost to build them makes profitability impossible.

Read More →
Ad Loading...
Done Dealby Tariq KamalOctober 10, 2019

When Dealers Catch Criminals

Noncompliant and outright illegal behavior by dealers, managers, and staff have generated headlines throughout the year. Less heralded are the instances in which dealership personnel took action that led to arrests.

Read More →
Done Dealby Tariq KamalSeptember 2, 2019

A Life of Crime at the Heights of Success

The long list of offenses committed by dealers and other highly successful people proves desperation is not the only cause of criminal behavior.

Read More →
Done Dealby Tariq KamalAugust 1, 2019

Are We Not Capitalists?

Opponents of franchise laws claim they hang on flawed logic, discourage competition, and benefit dealers to the detriment of consumers.

Read More →
Ad Loading...
Done Dealby Tariq KamalJuly 2, 2019

Will Data Put an End to Powerbooking?

A new-to-market, data-driven solution has reignited the discussion over intentional vehicle overvaluation, a form of bank fraud that remains prevalent despite a string of dealer lawsuits and regulatory actions.

Read More →
Done Dealby Tariq KamalJune 4, 2019

How to Sell GAP in a Crisis

Mounting losses have compelled many underwriters to jump ship on guaranteed asset protection, but it remains a cornerstone product that continues to perform for customers, dealers, and F&I managers.

Read More →
Done Dealby Tariq KamalMay 8, 2019

F&I Is Stronger Than Ever

Fears that F&I would fall victim to advancing technology and bad press appear unfounded as the segment continues to perform for dealers and car buyers.

Read More →
Ad Loading...
Done Dealby Tariq KamalApril 4, 2019

Tesla and the 1% Problem

For all its missteps, Tesla Inc. finally found its footing in 2018, eking out a 1.2% market share and renewing concerns shared by established manufacturers and brick-and-mortar dealers.

Read More →