Automotive News - October 17, 2016 - Supplement - S6

6 ❙ OCTOBER 17, 2016 SPONSORED CONTENT BEST PRACTICES IN F&I continued from previous page comfortable with purchasing products online. Give those digitally savvy customers the option of filling out paperwork or even getting preapproved for financing before they walk into the dealership. Not everyone will take advantage of this; some people will want to make sure they like the vehicle before spending time doing paperwork. "At driversselect, our preference is to get as much of the process done before they set foot in our facility," Hall says. "They can fill out trade appraisal forms, snap a picture of their trade-in, fill out credit information and send it all to us; we can in turn give them an interest rate, and an idea of their monthly payment, with and without a service contract. They can even put a deposit down and then come in and take a test drive and wrap up the deal very quickly." Minimize handoffs Once customers are ready to purchase, don't transfer them from a salesperson to an F&I staffer to a manager. "We offer turnover training, and we talk ad nauseam about the need to reduce handoffs," Garroni says. "Not only should a dealership employee make sure customers know why they are being moved to a different desk, or why they are suddenly working with a different member of the dealership staff-we all should ask, 'Do they have to be?' Customers do not typically like to be unnecessarily shifted from person to person or department to department. Instead, customers prefer to work with fewer 'trusted advisers.'" At driversselect, Hall says, the focus is on a seamless, personalized process that minimizes handoffs and complexity. "The same person answers the phone, meets you in person and does the contracting," he says. "As a customer you don't move from the BDC to sales to F&I. You stay with the same person all the way through the purchase process." Rethink your approach to negotiating Put the customer's needs first. Both Garroni and Hall say dealerships should be wary of policies and employees that focus primarily on selling cars or products. Garroni says he asks dealer customers to look over Ally's different product offerings and identify which have no value in the dealer's market. "I tell them, 'If you think they have no value to your customers, then why are you selling them?'" He points out that Ally offers a comprehensive bundle of products because different dealers and different markets want different options-but that does not mean every dealer needs to offer everything. "Offer core F&I products that bring value to your dealership and your customers. Be consistent in your pricing. Too often finance managers will push a product they themselves see the most value in as opposed to determining what the customer truly needs, can afford or is interested in," he says. "For instance, change product features, benefits or terms to meet budget constraints as opposed to arbitrary price negotiations." This helps maintain credibility and preserves customer respect and loyalty. Driversselect offers "tribal orientation" to train staff how to treat customers. This class celebrated with a re-creation of an iconic New York City photo but Dallas instead. Respect the customer's time "We ask customers, and have found that people don't mind shopping at the dealership," Hall says. "They see the value of test driving, and taking time to make a decision on a car. But once they make the decision to purchase, time becomes extremely important." He says driversselect focuses on the time from the moment when the customer says he's ready to buy to the time the car is out the door. "If we can keep the time in the dealership after that decision point to under an hour, that's great," he says. Garroni goes even further. "I think a best practice is to commit to get them out of F&I in 20 to 30 minutes," Garroni says. To accomplish that goal, the dealership needs to provide information online or upfront about which F&I products will be offered-so the customer has time to think about the choices. That could include having a laminated menu of options customers can peruse while waiting, videos that run in the showroom and F&I office, or tablet computers with links to third-party information the customer might find useful and reassuring. These best practices, he says, are the future of the business. Attending training events like the Ally Automotive Leadership Academy helps keep dealers and their teams up to date on the latest industry innovations. "We are seeing an emerging market of providers who do everything online, including financing, setting delivery dates, and even shipping vehicles," Garroni says "Ultimately, that is what a portion of the buying population is going to demand: more information upfront, fewer back and forth in negotiations, and consistency in pricing."

Table of Contents for the Digital Edition of Automotive News - October 17, 2016 - Supplement