3 Ways to Modernize Your F&I Process in the Age of the Customer

3 Ways to Modernize Your F&I Process in the Age of the Customer

One of the biggest opportunities to meet changing customer expectations is the F&I process, where customers spend more than one-quarter of their total time at the dealership when buying a vehicle, according to recent studies.

One in three Americans would rather go to the DMV, do their taxes or sit in the middle airplane seat than go through the process of buying a vehicle, reports Edmunds. In addition, Autotrader reveals less than 1 percent of car buyers like the current car-buying process, and 66 percent of car shoppers are much more likely to buy from a dealership that offers their preferred experience.

There are many steps in the car-buying process that need to be improved to provide that preferred experience. But one of the biggest opportunities to meet changing customer expectations is the F&I process, where customers spend more than one-quarter of their total time at the dealership when buying a vehicle, according to recent studies.

We’re in the Age of the Customer: Today’s consumers are empowered to do their own research and question the businesses they choose to patronize.

For the F&I process, this means customers want the chance to educate themselves on products before they make a purchase. According to one study, nearly two-thirds of consumers are more likely to purchase F&I products if they can learn about those products on their own time.

We’re now several years into the Age of the Customer, a business cycle that many experts estimate will last about 20 years, so don’t wait to change.

Here are three areas your F&I process can improve upon to meet customer expectations:

1. Make the Most of Their Time
According to an IHS Automotive Buyer Influence study, the amount of time it takes to complete a purchase is the number-one frustration of car buyers; so don’t leave your customers waiting idly.

Instead of leaving customers waiting with a cup of coffee and a Time magazine, empower them to educate themselves on your F&I offerings. Enable a better experience for customers with a tablet loaded with the F&I product and pricing info they’re interested in, so they can spend their wait time researching products that matter to them.

2. Make It Interactive
When your customers enter the F&I office, they’ve already done a lot of work. They’ve likely already been at your store for about two hours, and they probably spent about 15 hours researching vehicles before they even stepped foot in your showroom.

So, to keep them interested in your offerings, your F&I presentation has to be interactive and engaging. Instead of black-and-white text on a page, engage your customers with photos, videos and easy-to-understand descriptions of your products presented on a device, such as a tablet, with which they can interact.

3. Make It Personal
Nine out of 10 consumers prefer a unique, personalized car-buying journey, according to one study, so don’t give them a generic F&I presentation. Instead, show your customers you understand their unique needs with a unique presentation, built around the specific vehicle they are purchasing.

Make improvements in each of these three areas of your F&I process, and in no time you’ll see happier customers — and higher profits — during our current Age of the Customer.

You May Also Like

How Generative AI Is Impacting Auto Lending Compliance

What is often left out of recent headlines, is the extraordinary power of AI to reduce harm, including fair lending and discrimination risks.

By Tom Oscherwitz, VP of legal and regulatory advisor for Informed

Auto dealers and lenders, like leaders in other business sectors, are grappling with the current wave of excitement over generative AI. Many professionals have already seen a coworker or vendor pitch a generative AI use case. It seems as though half the room is significantly impressed, while the other half is waiting for a negative consequence or reaction knowing it was computer generated. The safe bet is that this technology will bring significant changes to auto lending.

5 Predictions for Front-Line Chat Solutions

In the next few years, prepare for a chat solution that must act like a personal greeter to every customer who visits your digital showroom.

Maximizing Fleet Uptime: A Dealer’s Guide

This guide provides actionable insights for dealers to ensure their fleets are always on the move.

Your Service Department’s Undervalued Opportunity: Streamlining RO Stories

Consider how much time repair event stories take to write. Now, multiply that by the number of technicians employed at your dealership and you could easily be wasting hundreds of technician hours every month.

Ways to Save on Credit Card Merchant Transaction Fees

A processor should lessen your workload by handling merchant processing. They should free you up to focus on the customer, while feeling confident that your processing remains compliant and safe.  

Other Posts

How End-of-Year-Sales May Impact Auto Finance Digital Transformation Strategies

We still have a very paper-driven culture but we need to continue to shift focus to digitization to reduce risk and liability.

The ROI of Giving Back

The key place to begin for any type of giving-back initiative is to determine what drives you and inspires you.

5 Technologies That Have Transformed Automotive Transportation

Recent advances in transportation offer efficiencies for drivers and carriers and provide peace of mind for customers. These improvements often offer cost improvements, as well as reduce liability for the carrier.

car carrier Ship.Cars
Skip the Stip: Lending Without Stipulations

New AI-powered technologies are creating more access to credit opportunities without the need for these stipulations and lengthy supporting documents.