Why a Hybrid Sales Process will be in EVERY dealership by 2023

Even before Covid, the sales process was changing to keep up with consumer demands. Consumers are doing more research online than ever before, and more customers are using online tools to start their sales process. Customers use website credit applications, trade value estimators, chat services, and BUY NOW buttons to initiate the sales process. Internal … Read more

What will rural residential high-speed internet mean for rural dealerships?

As the U.S. infrastructure bill works its way slowly through Congress, I thought it would be good to look at what this could mean for rural customers and their dealerships. Internet speeds in the urban areas have been well over 100mps for years while many rural areas are 10X slower (10mps) and close to old … Read more

Get more trades and close more deals by using Trade Equity, NOT Trade Value.

Helping customers ‘see’ the equity they have in their vehicles is far better than using a standard trade tool that only shows market value. Customers entering the market may be unaware of the shifts in trade value the chip shortage has created. They may be excited about upgrading their vehicle but historically have had to … Read more

2021 Inventory Issues Continue, Get F&I Revenue Growth Instantly.

According to the experts, the chip shortage creating the inventory problem will continue throughout 2021 and possibly into early 2022. Eventually, new vehicle supply will return to normal, and used vehicle prices will level off and fall back to the norms. I’m also positive that if you are reading this article, you are doing everything … Read more

How To Make sure your protection product profits are maximized with the correct lender decision.

When rates and reserve are about equal on an F&I deal, it’s critical to understand your ancillary product maximums per lender decision. Ideally, you want to select the lender decision that allows maximum profitability on any sold protection products. However, you also want to ensure that the lender reserve allows an adequate profit based on … Read more

How much does it cost you to train a new F&I manager to be just 80% effective?

There are two scenarios: Promoting or hiring a newbie into the F&I department and training them from scratch. Hiring a trained F&I director from another organization. Both have different cost structures, but they both need training and management oversight for a set time. If they are a newbie, they have to learn all the lending … Read more

Don’t Let the chip supply shortage destroy your profit

The chip shortage has created an inventory shortage that looks to be getting worse. It may be some time before the OEM’s get back on track with a steady supply of vehicles for dealers. The lack of new vehicles has increased the cost for the dealers to get used vehicles as well. The price increase … Read more

How to Stop ‘Good enough’ F&I Practices that kill gross profit

Why do we accept $1,500, $1,800, or $2,100 in F&I profit as ‘good enough’? We all know the ‘good enough’ mindset leaves profits on the table. Traditionally the work needed to capture the additional $40-$120 PVR most dealerships forgo has outweighed the profit reward. Thus, ‘Good Enough’ has become a dollar figure per unit sold. … Read more

How to organize lender callback data to maximize deal profitability.

The F&I managers do a great job of selecting the best lenders to submit a deal. They instantly have a good idea of what each lender looks for and what they will accept. Choosing lenders for the deal and getting callbacks is easy and fast for most F&I managers. The time-consuming part is breaking down … Read more