F&I 20/20 © The F&I Professional’s Newsletter A Division of EFI™ VOL. 1, ISSUE 1 $4.99 October-November Navigating the High Seas of F&I and Beyond 1

F&I 20/20 The F&I Professional’s Newsletter A Division of EFI™ VOL. 1, ISSUE 1 Top stories in this issue © F&I Spotlight Stump the Pro Stop Sign Show Me the Money Stump the Pro Join Tony Dupaquier as he reprises his well known “Stump the Pro” role of tackling your most difficult questions about F&I, customer types and handling objections. You’re sure to be enlightened! Page 4 Stop Sign Shannon Robertson and his compliance team which includes top experts in the area of automotive finance law will dig deep to keep you informed of impending shifts in the legal climate and help you sidestep landmines. Page 5 F&I Spotlight Every issue, we’ll feature an F&I pro in their personal element and how they unwind when they’re away from the store. They’ll share with you their hobbies, community involvement and why they love this great industry. Page 6 Show Me the Money G.P. Anderson will be your guide to make the most out of every difficult opportunity. His team of F&I pros will address the finer points of advanced F&I to take you to a higher level. His attitude is infectious so, get ready! Page 8 Life in the Box Smorgasbord of closes and quotes found in EFI by professionals doing what you do everyday. No matter how seasoned you become, there’s always something new to learn. Page 11 News Around Town Produced by NADA's Industry Analysis division, NADA Market Beat is a monthly report on U.S. new light vehicle sales; it replaces the NADA Monthly Sales Recap. at June 2020 Average Car Payment | Loan Statistics 2019 Written by Jenn Jones of Lending Tree. With the average car payment up to $550 for new vehicles, Americans are taking on auto loans in recordsetting amounts and for longer stretches. To get the full picture of auto loan debt and trends in the U.S., we looked at auto loan originations, prices, term lengths and delinquencies, among other aspects of auto debt in the USA. Here are the numbers. 2

W elcome to the first newsletter edition of F&I 20/20. At first glance, the title would imply the year or millennia in which we live. Well, sort of. Actually, it refers to having an excellent 20/20 vision of what F&I should be about from an advanced professional’s point of view. Our focus-if you will-should be to reach the highest rung of the ladder in F&I. Now, I’m not talking about PVR/PPR or any other numeric metric associated with the job. For some people, that’s enough and their only focus. True professionals-on the other hand-know that they’re judged by a much higher calling which includes a deep understanding of compliance and responsibility to not only their employers but also the customer’s buying experience. It is to this end we’ve structured the newsletter a little differently. Editorial Team Leaders will be responsible for working with various writers and professionals to bring you fresh up-to-date closing ideas and the latest from the regulatory front lines. Now, when I say “closing ideas”, I don’t want to be misunderstood. I’m not talking about issuing hammers to beat customers over the head until they submit. We all know what that looks like. I’m talking about advanced learning and application to help customers get what they want and enjoy the F&I process-not loathe it. So, welcome aboard, and let’s have some fun while we learn! Marv Eleazer Bits & Pieces………. An Automotive Journalistic Legend Retires. After nearly five decades of ink and paper, Steve Finlay of WardsAuto hangs up his keyboard. He signs off with a farewell article giving thanks to so many and paying homage to his most influential mentor. Congratulations, Steve! Enjoy your retirement. Ouch! JDSupra recently published a follow up report on action taken against Tate Automotive Group in Arizona and New Mexico for living on the edge. A first for the government enforcement agency, the full brunt of the FTC’s power was on display. Three Cheers! Ford Motor Co. says U.S. Ford and Lincoln dealers “overwhelmingly” gave back to their communities last year, with 30% of respondents giving more than $50,000 per year. Thirty-five percent committed between 10 and 20 hours each month to charitable giving, according to Ford Motor Co.’s annual survey on dealer giving. The survey coincides with the 20th annual Salute to Dealers awards that took place at NADA Show 2020 over the weekend in Las Vegas. One particular lady’s dealer group is featured in this terrific article about the ways they give back to their community. Rick-Road Warrior-McCormick He has something to offer up about indecisive customers. “Attempting to sell products in excess without knowing the exact needs of the customer is F&I malpractice! The mantra of today’s customer is “nothing extra.” To convert the customer from No to Yes, we must utilize a customer-focused process.” Shifting Gears U.S. demand for light vehicles has roared back since the sudden precipitous decline caused by COVID-19 that started in March and bottomed out at an annualized rate of 8.7 million in April – a 50-year low - with volume declining 46% year-over-year to 717,000 units. 3 Gregory Arroyo garroyo@dealersocket.com Tony Dupaquier tonyd@theacademylive.com Shannon Robertson shannon.robertson@afip.com G.P. Anderson gp.anderson724@gmail.com F&I 20/20© is a bi-monthly Newsletter for the professional F&I Practitioner. This publication is a division of Ethical F&I Managers (EFI™) and is copyrighted. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher at: Marv Eleazer 4043 Liska Circle Valdosta, GA 31605 fordpantera@yahoo.com (229)460-3310 Editorial Board

Stump the Pro Featuring Tony Dee O bjections as an Ethical F&I Manager can present its challenges and this one will take all your professionalism not to laugh when the customer say’s “I am going to do what Dave Ramsey says, put money in a cookie jar every month for auto repairs”. The natural response is for us to “understand”. As in, “OK Mr. Customer, I understand”. Take a cue: Stop “understanding” objections in the business office. When it comes to F&I products, you never want to “understand” them. When you understand, you are agreeing with the customer. This will lead you to the objection vortex. Instead “appreciate” the customer’s point of view. When you appreciate their point, it allows you to present your point without agreeing with them. “I can appreciate where you are coming from Mr. Customer, so let’s do the math”. Use the monthly cost of a VSC as your basis. Noting that most people drive 1500 miles a month or 18000 miles a year, the base factory warranty of most new vehicles will expire in 2 years. This is a critical point to make when working with the cookie jar customer. “The VSC changes your payment $45 a month, so let us use that number. In the first year, you will have $540. End of the second year, you will have $1080 less the maintenance”. This segues into the added cost of ownership that Pre-Paid Maintenance can solve. “The average repair order stands at $1200-1500, and when does the vehicle usually have a problem, during the warranty period or right after it expires? Let us say, you make it another six months before something breaks and you have $1350 in the cookie jar. Not counting the tow bill and rental car, you’ve barely covered the repair”. “It’s virtually impossible to maintain your budget and put enough in the cookie jar for the next repair not to mention maintenance. So instead of creating a variable budget that may create problems for you, wouldn’t it make sense to enroll with the VSC for the $45 a month and ensure that your vehicle is always fixed, with factory OEM parts?” Nod yes. “The average repair order stands at $1200-1500, and when does the vehicle usually have a problem, during the warranty period or right after it expires? Let us say, you make it another six months before something breaks and you have $1350 in the cookie jar. Not counting the tow bill and rental car, you’ve barely covered the repair” “We’re good on the road hazard because our tire guy gives it to us free when we buy from him so we’ll pass”. This objection is better handled with product knowledge instead of technique. If you are not familiar with what tire shops are offering, stop by one and ask for the info and have it on demand next time you hear this objection. We see three primary types of road hazard policies available from tire stores: *A Purchased Policy that is only good at the originating store location making claims inconvenient. This policy is often pro-rated so, the customer will have some out of the pocket expense. There is a time limit of no more than three years on most and cannot be renewed. Do the math on this one with a customer. $250 for a tire, plus $40 for the road hazard, you now own it for $290. The tire is damaged and not reparable. 50% pro-rated so you pay $125 plus another $40 for road hazard. You are into the second tire for $165, plus tax. OK, $165 is better than $290, but was the rim damaged? Was there a towing expense? Did you have to personally change your tire in the rain? *A Purchased Certificate for repair, refund, or replacement. This is a new program we have seen in the industry. Let us start with the cost, 17% of the price of the tire. There are several caveats to claim a three-year term limit, cannot be renewed, must return to the same store, only the tire the certificate was purchased on is covered and equal tread depth across the tire. Equal tread depth across the tire, is this even possible? However, it is not a pro-rated program, same as our policies. But once again, was the rim damaged, and what about the towing expense? *The “Free” Two-Year protection. This is a reimbursement back to the customer, although mounting, balancing, wheel weights, shop supplies, disposal fees, or taxes are covered. This program does have some nice benefits such as not being pro-rated and does have a full road-side assistance benefit. What about the rim and the upfront out of pocket expense? It is essential you know what is not covered and what is not so, READ it. Take special notice below, of the word, “when” instead of using “if”. That is an EFI PRO Tip! “You are correct, it is a bit more expensive than the tire shop, however, this policy covers much more than your tire. It covers that $300-1000 wheel when you hit a curb which includes scratches. It covers all your tires for the next 5-7 years, is never pro-rated, and includes full roadside assistance. So, for the extra few dollars, wouldn’t it make sense to have this for your family's safety and your new car looking good maximizing its value”? And once again, a little yes nod. Tony Dupaquier leads the eight certified training & development specialists at The Academy. With more than 30 years in the industry, he has held nearly every position in variable operations, from salesperson to general manager, and is a former Nissan National Walk-Around Champion. Tony has been a featured workshop presenter at the NADA Convention for a number of years, addressed international dealer groups on F&I and sales techniques, and spoken at numerous 20 Groups and dealer associations. He also contributes F&I articles to many industry publications. As director of The Academy, Tony is responsible for its curriculum, marketing, and overall growth and direction. 4

Stop Sign Shannon Robertson-Executive Vice President of AFIP For the inaugural issue, Shannon calls upon David Robertson-Executive Director of AFIP-to discuss what he sees as a troubling and potentially Aftermarket Product Sales…a proactive response to a festering problem threatening cloud is building within key Federal regulatory agencies due to concerns about dealer-offered A aftermarket products. These products were recently the focus of a consumer survey conducted by the Federal Trade Commission – often a precursor to additional regulation. The pivotal issues of the survey have to do with pitching and pricing. Questions abound such as; Are the products and services accurately presented as being optional and not incidental to the purchase or lease? Is the retail price paid commensurate with the value received? Fair warning, if you don’t have a written markup threshold policy in place that has been reviewed by dealership legal counsel – with documented oversight to ensure compliance – you need to get one. As for product pricing, it makes good sense to base the markup on a percentage of the wholesale price, rather than a fixed dollar amount, considering the wide range in wholesale pricing of products and the range of vehicle makes and models the products will protect. It would keep the retail price commensurate with the hard cost of the product or service. To provide guidance, NADA published Voluntary Protection Products: A Model Dealership Policy. You’ll need to create an account to download a copy. The Association of Finance & Insurance Professionals (AFIP) highly recommends the policy and includes it in the Certification Curriculum. Under the program, the dealership displays a notice informing customers that the value-added products are designed to protect the customer’s investment. The notice also states the products are voluntary options and not required to purchase or lease a vehicle. “Fair warning, if you don’t have a written markup threshold policy in place that has been reviewed by dealership legal counsel – with documented oversight to ensure compliance – you need to get one” NADA’s policy recommends placing the notices in the showroom, but I asked NADA for permission to place the notices in the F&I department, at the point in the ownership process where the benefits of the voluntary protection products are traditionally presented. In my view, a printed notice about protecting the customer’s investment is a good segue to a menu or selective aftermarket product presentation. NADA has agreed to the smaller notices. We have developed a desk-size placard and stand for use in the F&I department. It will be included with the Basic Certification Course and available for purchase. AFIP’s preemptive message to the regulators? We understand your concerns – and are educating hundreds of thousands of prospective buyers at the most effective point in their decision-making process. And certifying thousands of rule-savvy F&I personnel in the process. Listen, the best defense for keeping Federal regulators and new rules out of our stores is a consumer-friendly and regulatorily compliant offense. About the author – David Robertson is a 40-year veteran of, and aggressive advocate for, the retail automobile sales and F&I processes. He is a cofounder and the executive director of the nonprofit Association of Finance & Insurance Professionals. He has successfully defended the interest of the independent VSC industry in matters before the National Association of Insurance Commissioners and the IRS, appeared on ABC 20/20 and is widely quoted and published. He currently serves as a dealer advocate expert witness; the last two cases involved payment packing. David Robertson during his years as an F&I Manager. 5

F&I Manager Spotlight The inaugural issue’s F&I Spotlight is on Dina Wilson. She’s a unique and highly passionate professional with a wonderful story to tell. W e all have our favorite ways of unwinding after a hard day’s work. For some, it’s watching the news, tinkering in the woodshop or taking a walk. For Dina Wilson, it’s tickling the ivories. An accomplished pianist, Dina channels a lot of herself through the keyboard in many ways. “My method of relaxing at day’s end is playing the piano and my husband can tell what kind of day I had based on the type of music I play”. Her husband, Jesse says “When she comes home and doesn’t talk, that’s the first sign of a bad day. She goes to the piano and depending on how her day went, determines how long and what she plays”. “The harder she beats the keys is how the frustration comes out. The softer the music, the less a frustrating day she had. I enjoy watching her play as her personality comes out through her music”. He adds “When she’s done playing, we talk”. Now, the moment you meet Dina, your first thought is how sweet, gentle and motherly she is. All this is true but you and I know it takes a tough mind to saddle up to the task of both jobs yet she makes it look easy. And don’t underestimate her because she WILL tell you like it is in a heartbeat. Ask yourself this; How many pros can you think of who can wear both hats of General Manager and F&I? This writer cannot. The amount of stress that comes with being GM alone is enough to drive you batty. Add all the things an F&I Manager must do to deliver a car and it sounds like a never-ending day. Though she holds two of the most important roles in the store, her biggest passion is F&I and Customer Service. “I absolutely love helping people and F&I gives me the greatest joy in doing so”. “Currently I serve customers at the Kia Store but have been in our GMC, Buick, and Chevrolet Stores since coming to work here. My current job title at Kia is GM/F&I but I prefer Customer Service. I am here to assist customers in making well-informed decisions and seeing the advantages of ‘why’ they need a particular product”. An award-winning professional with a true passion for the automobile business and helping others, her untiring work ethic is amazing which has often been noticed by peers in the industry. As the General Manager of Timbrook Kia, she’s earned Kia’s coveted “Dealer of Excellence” award the last two years running and captured “The Timbrook Highest Growth in Fixed Ops and Variable Award” in 2019. And when she won the prestigious F&Idol trophy-sponsored by IAS-in Las Vegas a few years back, she recalled being totally shocked. “I remember Jeremy Johnston leaning over and saying ‘You won! And you know this wasn’t rigged because no one has ever heard of Cumberland, Maryland’. 6

B orn and raised in Charleston, West Virginia, Dina moved to Cumberland when she and Jesse married 41 years ago. Two grown sons and four grandchildren make for a happy family. The oldest grandchild is a boy aged 5 years and two little guys 11 and 7 months. One granddaughter aged 2. “They live close by-which is a good thing because it’s such a joy being with them”. Dina volunteers personal time helping the local community in various capacities. These include participating in a Prison Ministry at the Western Correctional Institution in Cumberland. “I love volunteering with my church in Prison Ministry on Sunday evenings playing piano and singing. I also volunteer at my church playing in rotation with four others and I teach Sunday School in a class filled with 2-4 year olds”. Dina describes her work in the prison with great passion. “I have played piano since I was 13, and back in 1999, an inmate reached out for us to start a service and bible study. Due to red tape, government rules/regulations and training of volunteers, we weren’t allowed to go into the prison until June 2001”. She continues, “Life had changed in my personal life and I wasn’t quite in the car business yet, but due to a career change, I had more time so I volunteered to play piano and assist with singing. At first, I thought it would be a situation where we would have other volunteers come in and it wouldn’t be a full-time volunteering position. However, God did not have it that way. It did turn out to be a full-time ministry, which I absolutely fell in love with”. “Most of the volunteers from our church first thought we would go in and be a blessing to those who came to the service. In reality, it turned out that we were more blessed! God does work in mysterious ways. I have seen men come to Christ through this ministry and move-on to be a part of spreading God’s love and compassion on the outside. Many have come out and are doing quite well. Most of them do keep in touch with us when they get out and come to visit”. Her work at the prison goes even further. “With our Prison Ministry, we also have a Christmas Program where we supply a very nice meal for kids and their foster parents while their mom or dad is in prison. We have a meal and I work with kids in our church from the age of 2 – 17 and we perform a Christmas play for them. Sometimes those children want to be a part of the play and of course, I let them (we always have a few extra costumes just in case), we also purchase gifts for the kids and have it signed from their mom and dad. That is truly a blessing!” And as if she doesn’t have enough on her plate, she is also the President of the Cumberland Choral Society having served in this capacity for the last three years that she’s been a member. The Choral performs two concerts yearly in the Spring and Winter. On her future in automotive, she says “I hope to be involved for many more years as I love to teach “newbies” and give encouragement to those that have been in this business for a while to not give up. Every deal is like a new day!” Dina channels heartfelt passion in both her business and personal life. She does so with great conviction and dedication in improving the lives of everyone she meets. Join us in celebrating this fine professional and drop her a line of appreciation. 7

Show Me the Money Mastering The Moment I ideas that changed the world. And just about the time we think we’ve witnessed the pinnacle of modernization, along comes a young kid with a new idea or a better way to do the same thing but faster and for less money. Perhaps he was snowed in and couldn’t get to work for a few days kind of like recent events that have gripped our country and industry. Many were furloughed, reduced to part-time status, or outright released. All in all, the car business is just starting to get back to normal. And, while some may view this as an extended vacation or decide to look elsewhere for work, industrious minded folk view it differently. Like the opportunist who looks at the glass as half full, the out-of-the-box thinker has begun treating it as a time to test, improve, and develop new processes. Like many of you, I was affected as well. Working remotely from home afforded me ample time to think, reflect, and gather my thoughts. Thoughts, that were always there now presented themselves more clearly. We’ve all seen the ads, got the phone calls, opened the junk mail saying ‘The warranty on your 1967 car is about to expire’. We quickly hang up or toss the letter without a second thought, but are we missing an opportunity? These solicitations didn’t have a reasonable chance of succeeding years ago. So, we laughed them off and made facebook memes and jokes mocking them. At first, it was just random hit or miss but marketers eventually got smarter and refined their process by checking the state’s DMV records to see your exact year, make, and model. “Listen, we’re in the best position to capture post-sale products since we understand them better than telemarketers. We have established partnerships with the providers, and already have proprietary data on our customer’s vehicles and driving habits” Still, we chuckled and ignored them. Think about this for a moment. The "stop at nothing" mentality is obviously profitable or they would’ve quit long ago. While we’re annoyed as F&I managers and even scoff, marketers are grinning all the way to the bank. So, I ask the question. “Why-as professionals-are we allowing this to continue?” Stop and think about it. WHY? Is it procrastination or outright laziness? Listen, we’re in the best position to capture post-sale products since we understand them better than telemarketers. We have established partnerships with the providers, and already have proprietary data on our customer’s vehicles and driving habits. When exploring aftermarket value pools, OEMs are often tempted to prioritize data-driven services enabled by digital innovation. For instance, Ally partnered with Blinker to expand its e-commerce and loan origination platform into two new states. Launched in Texas and Colorado, it now adds the two largest vehicle markets with its expansion into California and Florida. Blinker now gives users the option to add vehicle protection products to their deals, including Ally GAP and Premier Protection VSC’s. This creates additional pressure on dealerships in these four states. Will OEMs seek increased penetrations nationally? I’m betting they’ll try. Recently, I started data mining my dealership’s owner base calling previous customers that hadn't purchased a VSC at the time of sale. And let me tell you, the results have been amazing! My method is to simply call customers who purchased three years ago and offer them coverage. These simple phone calls have been adding a lot to my department’s bottom line while increasing my net PVR. Hey, get on the phone or text your customers and have a conversation. Segment them by need and secure their business with tailored products since you have all the data. You’ll see your bottom line take off too! Collecting the full price with a credit card works great for those who can. For the budget-minded, use a service that offers financing terms. Service Payment Plan and Line\5 are just two examples. Ten percent down upfront, equal monthly payments, and zero percent interest just make good sense. Business is booming here at Thielen Motors! A direct mail piece for post-sale VSC’s is also in the works. Listen, we must stop giving control to outside marketers lest they capture more market share. Instead, create an action plan with manageable expectations that allows you to keep control of your customer base. You’ve got 24 hours to own your tomorrow. How will you use them? It's all about Mastering the Moment. 8 GP Anderson is a more than 25-year veteran of the auto industry and currently serves as finance manager for Thielen Motors in Park Rapids, Minnesota. He is ACE and AFIP certified. t’s often been said “We all have the same 24 hours in a day”. What we decide to do with them and how much we’ll accomplish, is up to us. Pick a name-any name-of a notable inventor, industrialist, or visionary. Alexander Graham Bell, Benjamin Franklin, Henry Ford, Bill Gates, Steve Jobs, or Mark Zuckerberg. We could fill reams of paper writing down the ones we’re familiar with. Their commonality was they effectively used the 24 hours allotted to them developing products and

Life in the Box The latest F&I tips and useable quotes from EFI Matthew Hilty: Here’s how I handle USAA customers... “I’m sorry, we don’t deal with USAA because our customers don’t like to wait for the money to clear (usually 5-7 days) before they can take their car home. Would you like to finance with one of our lenders and take your car today?” Ali Woerner: On the subject of BK’s-Stips upfront. Go over every pay stub with a fine tooth comb. Get 30 day payoffs when you can. Don’t get rid of their trade until after the deal is booked. Make friends with the local bankruptcy guys. Try to sign up with banks that do open chapter 7s. Don’t get into chapter 13 bankruptcies until you’re comfortable with special finance. Try to get as many stips cleared with the bank before you sign them up. Ricardo Dordete: What do you do when a customer doesn’t even let you finish the your menu? “I’m going to just stick with the warranty I currently have. I have a mechanic who helps me out, he’s my brother in law. I’m set with all of these.” Earl Stanley: Replies: F customer. That's why we call it an average. Move on. I'm sure some in this group (even rightfully so) may have an angle to approach that. I just move ‘em on. Save the survey and call it a day. Billy Maki: Sold a Platinum Package on a cash deal! Boom! Dina Wilson: Presented menu options to customer with payments and got three “No’s”. Used ‘fixed vs variable’ payment, painted scenario of breakdown and $$ that could be associated with the epairs. Gave it a few (pulled back and sign declined). Just before printing bank contract I pulled the stapler out and BAM! Got it! Don’t give up! Know when to push and when to pull! Thanks Tony D for introducing that one to us. Usually I use it during presentation and forgot but it came to my rescue! Lloyd Trushel: Funny story. I spun a deal for a somewhat well known trainer years ago. He refused everything. Now, when I see his training videos, I remember he’s a hypocrite. Randy Jensen: Its been said a million times on this group before. You do not want to be the person in an unfair/deceptive/abusive acts lawsuit deposition being asked “Mr/Mrs X, can you please explain what you mean by ‘leg’?” Don’t wonder why you’re not getting it. ‘Leg’ on deals is a ticking time bomb. Be compliant and disclose everything. Tom Brenholts: On the subject of difficult customers-I always say, "The information is free, you might find value." Lots of times it doesn't work, but sometimes it does. But if you don't say it, it never works. Billy Andrews: Just in case someone needs to hear this today. A strong finance manager is worth their weight in gold. Twice in the past couple of days I took short deals to move some old units. Every time my finance manager bailed me out and made those deals worthwhile. I came from a finance background but also know these units needed to go. If any of you don't feel appreciated, please know that a lot of us realize your value. Tony Dee: Seeing a lot of cash lately? Take a look at this GAP Cash Conversion video then give it a try. Let me know how it works out for you. 9

Shaping Our Future The former editor of F&I magazine returns with a message about F&I’s future and the opportunities that emerged through COVID-19. By: Gregory Arroyo I am honored to join Marv on his new venture. As I told him during the different phases of this project, the industry misses his passion and, most of all, his voice. He is a true steward of the F&I industry, defending its purpose, the people who do it day in and day out, and its future at a time when some question if it really has one. I met Marv at the end of my first year as editor of F&I and Showroom, when he schooled me on what exactly my readers needed over steaks and a few adult beverages. It wasn’t long before I’d need more than his advice, and his Mad Marv column was born. It’s a shame my old publication claimed the name as its own, even though it was Marv who gave it life. But enough with the past. It’s time to look forward — something I’ve been doing quite a bit since leaving F&I magazine in September 2018 to join one of this industry’s technology providers. The experience so far has confirmed my respect for the plight of the F&I manager, but it also opened my eyes to the critical role technology plays in driving front-end processes. So here’s my controversial statement: I do believe digital retailing has a future in our industry. However, I’m not sure what we’ll see will look anything like those supposed car-buying studies said it would look like. The best analogy I can give is one I heard from Randy Berlin, who serves as global director of dealer consulting for Urban Science. His analogy likened digital retailing to the autonomous car — Berlin noting that not many people were all-in on self-driving cars at the outset. But the drive to deliver that experience gave us popular features like adaptative cruise control, lane-departure warnings, and automatic emergency braking. He says, “Digital retailing is synonymous with that; I can do most of the transaction online, and it’s more than just submitting a credit application. It’s a doc you can sign electronically and those sorts of things. Then I get to complete the transaction at the dealership because I want to see the vehicle.” I bring him up because Urban Science commissioned The Harris Poll to survey 1,506 adult consumers in June — 71% of whom said dealership people have the expertise necessary to help them navigate the complex process of buying a car. Remember, there are plenty of online resources available to tell a consumer the price they should pay for a vehicle, but not many are prepared to cut a check for the full amount. Instead, they need you to translate that great price into a finance or lease payment. “So here’s my controversial statement: I do believe digital retailing has a future in our industry. However, I’m not sure what we’ll see will look anything like those supposed car-buying studies said it would look like” “ That is where a digital retail tool can also help, I believe, especially when you consider that about a third of respondents to The Harris Poll’s survey said they would wait to visit a dealership until they felt comfortable given COVID-19 health risks. The good news is that 90% of them believe personal vehicles are by far the safest means of transportation vs. bike shares, Ubers, trains, commercial flights, taxis, and the subway. That might explain why some of you are seeing such high pent-up demand at your stores. Here’s what else came out of the study: While seven in 10 respondents agreed they would limit the number of dealerships they visited if they were purchasing or leasing a new vehicle right now due to health and safety concerns, 93% of them expressed some concern with an entirely online vehicle purchase process. Why? Because they want to touch, feel, and experience the vehicle first-hand. Now here’s where it gets interesting: According to survey results, two-thirds or more respondents said they were more than comfortable shopping and viewing vehicles of interest online (78%), are OK handling contracts or finance paperwork and discussions online, and are willing to negotiate price or terms via email, chat, or phone (67%). And, here’s one more stat to ponder: 67% of survey respondents indicated they would be more than open to buying a new vehicle online if it was a brand or dealership they were already familiar with. I recently wrote that data mining might represent digital retailing’s launchpad. Hey, don’t repeat customers deserve a different experience? They don’t need the service tour again, right? So, what should that experience look like and how much of that transaction should happen online? Here’s my point: None of this data should be viewed as a threat to F&I. Instead, it represents an opportunity for you to shape the future of F&I. As I’ve always said, the industry’s road to the Digital Age runs through F&I, and nothing of what I’ve shared here changes that. Gregory Arroyo is the former editor of “F&I and Showroom” and “Auto Dealer Today”magazines. He now serves as senior manager of strategic content for Dealer Socket. Email him at garroyo@dealersocket.com. 10

Say What? No matter how long you do this job, you’re going to hear the most amazing and unbelievable things popping out of the mouths of customers and staff. Here is a sampling of things overheard in the F&I office. Enjoy! Jason Burcina: I know I'm going to hell and I blame it on the salesman in me. Today I had a customer buy a 2010 Accord with 150k. I showed her a 36 months/ 36,000 mile VSC. She looked at me and said "I only have about a year to live" so without skipping a beat I said "Well let's get you signed up with a 12 month / 12,000 miles VSC then". Garrett Kinsey: Does anyone have any idea on how to get a REAL Santander employee on the phone? Elizabeth Jones: When the customer asks which bankruptcy is stopping her, the one in 2008 or the dismissed one in 2019 that she wants to reopen..... Brandon Baker: Customer tells me “No” four times and I try once more . Explaining that I have a VSC on my Tundra because I can see what comes through our service department and electrical things do go out. Customer’s response "So your telling me you carry a warranty on your Toyota?" Me "Yes sir. I like to keep my cost of ownership as low as possible on my investments". Customer looks me right and the eyes and says "Well if you have a warranty on your Toyota then you sir, are a idiot". Greg Smith: Just had a deal blow out because the customer thought $24,000 out the door meant after his trade, which it did. Then he wondered why it was still $24,000. "$24,000 plus my trade was what I was told." Basically he wanted his trade counted twice and he didn't get the simple math, even after I went down the numbers line by line. Called us liars in the showroom in the middle of a crazy thunderstorm. I swear to God sometimes I can't make this stuff up. That's what happens when you work deals by text message. Stefanie Taylor: Just a random funny moment tonight: Crazy busy standing in the middle of the showroom doing a running TO/close on rate/pmt/vsc as the customers are walking their 4 mo old baby around... they are SO close to saying yes after 2 “no”s... so last pitch I shut up as they ponder and ask each other “well, what do you think?” At that silent moment the baby totally blows out... loudest baby fart/poop ever. And it smells really bad so we all just laughed out loud and they agreed to all the numbers as presented. Thanks, baby! 11

A little fun trivia Rules: Only Honest Abe’s may participate. No search engines allowed including Google or Bing. You must have knowledge to answer the trivia questions. You may not call anyone for the answers. *What was the former name of George Angus’ Team One Research and Training™? *What year, make, and model of classic car does David Robertson of AFIP own? *Tony Dee has two weekend pastimes. Name either of them. *A well known FIM continues an annual holiday tradition that helps feed people. What’s his name? *A well known dealer group launched a series of funny commercials with an unusual character. What’s his species and name? *Considered the “Father of F&I”-Billionaire Pat Ryan-launched the concept of stand alone F&I offices. What was his staple product? *Who was the founder of AutoNation? *Famed Ford GT40 race car driver-Dan Gurney-was the first to do this after a race. What was it? *What department did Teasha McMillion begin her automotive career? *Why do NASCAR races run on oval tracks go counterclockwise? First person with the correct answers will win a genuine EFI ball cap. Send answers to fordpantera@yahoo.com etc………… Y ou know, there were a lot of things we learned in the F&I training class. Of these, Objection Handling was probably the most important because it reveals why a customer may be having doubts about a product. This Customer-to-F&I Manager interaction also helps properly identify the various customer types i.e. A-B-C-D-F he/she is dealing with so proper methods can be applied. Other things trainers discussed were adherence to the F&I Process, Menu Usage, Time Management, and Compliance. We also learned the basics of what each product covers and how it benefits customers. While these are all great building blocks of a successful career path for the Ethical F&I Practitioner, continuing education and knowledge is left up to us. Yet, the one item which needs focus and usually overlooked in a training class is Attitude Management. Part of the reason it is not being taught is likely time constraints. And we all know a proper Attitude must be managed by the practitioner. But where do we go to learn this self-management? Unfortunately, it’s called ‘OJT’ which means ‘On The Job Training’. And as painful as this sounds, it’s likely the best way. Know this-our attitude can quite literally change the outcome of many things we’ll face today. Recognizing this and then deciding how we’ll conduct ourselves is, up to us. We’ve often heard the expression ‘Attitude is Everything’. And it’s common knowledge that our attitude is usually translated through non-verbal body language. Most experts estimate it at 70-93%. You can rad more about non-verbal communication here. Salespeople and Customers You know, it’s easy to blame others for lost opportunities in F&I and even easier to fly off the handle. And, while you may be right in taking a bite out of their hide, try considering how to turn the misstep of a salesperson into a training opportunity instead of a butt chewing tirade. Yeah, they may get your point but learn nothing if you just vent instead of train. Now, as far as customers are concerned, they only buy cars once or twice a decade. For them, it’s exciting! They’re paying big bucks so why not put on your best face before you go out to meet them? They don’t know-nor care-about your internal struggles so sometimes you gotta-fake-it-‘til-you-make-it even when you just had to clean up a salesperson’s mess or delivered three cash deals in a row without product. Listen, a warm and sincere smile can break down barriers in an instant. We’re all pros so, let’s give them their money’s worth with a great attitude! 12 MM

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