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How to organize lender callback data to maximize deal profitability.

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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 the callbacks from each lender to determine various profit metrics. Each lender sets different criteria, and the F&I manager has to go into each callback to find and calculate the offer’s profitability. Time starts adding up when they have to do this 3-5 times for a deal. 

Time gets extended again when a customer buys an ancillary product. The F&I manager has to go back into each deal to recalculate. They need to check for caps or other profit changes on ancillary products, LTV max, etc. Often changes in the deal structure adjust the overall profitability of each lender’s offer. If an F&I manager fails to recalculate all the lender decisions when changes get made, they usually miss the fact that the maximum available profit has switched to a different lender.

Organizing lender decision data from RouteOne or DealerTrack is tricky and left up to the F&I manager. Jotting notes, doing calculations in their head, and bouncing between the different decisions is how most F&I managers figure out the profitability of a deal. It’s also where mistakes happen, and profit opportunities get missed.

Technology that assists F&I managers by organizing the data and doing all the manual calculations is a game-changer. Providing F&I managers with an organized comparative view of all the lender decisions that show lender profitability, ancillary profitability, and combined maximum profit is the best way to maximize F&I efficiency. 

When the F&I team can quickly determine the profitability of each lender’s decision, they can focus on upselling customers and maximizing profit on each deal. The reduction in bouncing between decisions and doing manual calculations eliminates common errors that miss profit opportunities. Having the ability to add, change, and adjust products in a comparative view helps make sure that the F&I manager can always see the Maximum profitability of each lender’s decision based on the current deal structure.

The lenders all have different criteria. A change to the deal frequently changes which lender is the most profitable to the dealership. ProfitIQ allows the F&I team to track every change and compare all the lender’s maximum profitability based on the deal structure. All changes get automatically recalculated into the lender decisions so the F&I manager can instantly select and sell the decision to capture the maximum profit for the dealership.

It is counter-intuitive that doing less work will increase your PVR, but that is the beauty of technology. Automate the manual aspects of a process and put that time back into focusing on maximizing dealership profitability.

If you are interested in learning more about ProfitIQ and ready to start capturing the many thousands of dollars most dealerships are missing every month, please reach out to us at – sales@creditiq.com 

Kent Mihlbauer
Author: Kent Mihlbauer

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