Suggestion: Make more on the deals you DO have. Let’s say that a dealer is selling 100 units per month. If the F&I manager can figure out how to increase the F&I Income Per Retail Unit by 50%, (Our average increase after first adopting our process is 63%). Is that not, for the sake of your paycheck, the same as selling 150 units at your current performance level? "Half the people here pay cash". Again, there’s not much we can do about the demographic we have walking through the door. It is what it is. However, it’s what we do with those cash buyers that can make a difference. First, I have chased down a plethora of alleged cash conversion techniques over the years that, while sounding good in concept, simply don’t work for most F&I managers. So, they stopped doing them. Suggestion: We have had some results using a simple cash conversion technique we developed a few years ago. Some F&I pros are successfully converting 20% to 25% of cash buyers to dealership financing. And the process takes just a few minutes. There’s a step-by-step explanation of the process in an article I wrote for F&I and Showroom Magazine a few years ago at http://www.fi-magazine.com/article/story/2014/07/ converting-the-ca-h-customer.aspx http://www.fi-magazine.com/article/story/2014/07/converting-the-ca-hcustomer.aspx Give it a try. It works. "The lenders are capping all my deals and won’t let me sell any products". Suggestion: Here’s what you do. Rather than complaining to your boss about capping, keep a detailed log of the deals that are capped, make a note of how much income was lost because of it, and then present this information to your Dealer Principal or General Manager at the end of the month. Don’t whine, just give them the numbers. You see, the lenders do have some flexibility here and a call or a meeting with your boss is sometimes all it takes to get them to loosen up on capping. The lenders need your business, but they will cap your products as long as they feel they can get away with it. Many times, your boss can fix this. Money always talks. "The sales department isn’t turning people over to me at the time of the sale". You don’t run the sales department. The Sales Managers do. If they are not turning people over to you it’s because they don’t have to. Suggestion: Here’s the way to solve this. It’s all about money. As we suggested in the capping solution, you need to keep a log. Every time someone is not turned to you, make a note of it on your log. Then, at the end of the month, multiply those people you didn't see by your average income per financed deal. Then show the Dealer or General Manager the potential income lost, simply because they weren't turned to you at the time of the sale. Believe me; the numbers will speak for themselves. The problem will get solved. "We don’t have the right inventory for these buyers to get financing". There is no question that the right inventory is essential in the current lending market. However, you need to get involved. 13
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