Ally Next Practices - A7

SPECIAL ADVERTISING SUPPLEMENT

MANY DEALERS HAVE BEEN RELUCTANT
to give up control over F&I. With increased
compression of their margins, it's often the
place where they make their profits. But
Danford says online or digital F&I does
not automatically lead to reduced profits.
"Transparency should not mean no margin
for the dealer," he says. "When I say the
consumer is interested in transparency,
that doesn't mean he doesn't want the
dealership to make money. What we have
to figure out is how to make sure dealers
still make a healthy margin on the vehicle
so the same thing that happened in online
pricing doesn't happen in F&I."
Garroni of Ally Insurance admits that
the idea of a digital F&I experience, with
approval before the customer interacts
with the dealership, is a "seismic shift in
dealership culture." But he explains: "This
is the next logical step in our evolution.
After a customer makes the decision to
buy, so much of the process depends on
the professional F&I manager. Now we're
exploring what happens when you remove
that person from parts of the process."

SPEEDING UP AND STREAMLINING
the F&I process isn't only about the
consumer benefits. Dealers such as
Slaughter see operational benefits as well.
"My vision is if we have a full digital
signing ceremony, we'll never again miss
someone's signature on a form-the
system wouldn't let you sign off," he says.
"Another thing is that once those forms
are signed, we can electronically transmit
them to the bank, to the secretary of state,
to the floorplan provider and to the vault
for our audit. It might be able not just to
speed up the signing but make us more

efficient on the back end."
From Slaughter's perspective: "There
are so many things we could redeploy our
people to do other than F&I. People can be
more productive, developing relationships
rather than handling paperwork. Every
minute they spend on paperwork is time
not spent building valuable relationships
with customers."
When dealers and car buyers begin
using a digital F&I system, Ally's Garroni
says: "Every customer can expect a
smoother, more efficient delivery and
service experience that drastically cuts
down the time they have to spend on the
F&I process at the dealership. The changes
have the potential to turn the dealership
experience into the concierge, first-class
experience that everyone wants."

iStock: IconicBestiary

CLEARLANE IS JUST ONE STEP IN
digitizing F&I; dealers and finance
companies are testing other solutions as well.
"It's inevitable that more of the
transaction will move online-including
quoting F&I prices specific to that dealer,
allowing the customer to e-sign for a deal
and pick the vehicle up at the dealership,"
Danford says. "Functions including
presentation and presell of add-on
products are going to move that way, too.
I don't have a crystal ball to say whether
that will be 10 years or 15 years, but the
Amazon phenomenon is real. To me it's
not whether it will happen-it's in what
time frame it will happen."
Sam Slaughter, owner of Sellers Auto
Group in Michigan, is one dealer who
thinks the time has come. "Right now,
people can shop all they want online. I can
sign a mortgage online," Slaughter says.

"We need a system
where we can
complete a vehicle
transaction online-
either at home or in
the showroom.
"Signing pieces of
Sam Slaughter
paper is obsolete. As
an industry, we are all grappling with the
way to make that happen."

JUNE 2018 | ally | 7



Table of Contents for the Digital Edition of Ally Next Practices

Contents
Ally Next Practices - Intro
Ally Next Practices - A1
Ally Next Practices - A2
Ally Next Practices - Contents
Ally Next Practices - A4
Ally Next Practices - A5
Ally Next Practices - A6
Ally Next Practices - A7
Ally Next Practices - A8
Ally Next Practices - A9
Ally Next Practices - A10
Ally Next Practices - A11
Ally Next Practices - A12
Ally Next Practices - A13
Ally Next Practices - A14
Ally Next Practices - A15
Ally Next Practices - A16
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