As an F&I manager, your role is vital to the success of your dealership. You look for ways to improve your F&I compliance process and you know that by following best practices, you increase profitability and improve customer satisfaction.
What are best practices?
Best practices are a set of procedures accepted as being the most effective within an industry. For F&I managers, this refers to the requirements necessary for legal compliance.
5 Best Practices for Your F&I Compliance Process
In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act passed to regulate specific consumer financial services companies and banking institutions and their affiliates.
According to the Federal Government Publication Office (GPO), the purpose of this act is to “promote the financial stability of the United States by improving accountability and transparency in the financial system.”
The Consumer Financial Protection Bureau (CFPB) is a federal agency established by the Dodd-Frank Act. Where necessary, the Bureau enforces federal consumer financial laws.
With close government-enforced regulations, making F&I compliance a priority is necessary. Here are five of the best practices agreed upon by F&I experts to ensure consumer financial products and services are fair, transparent, and competitive.
1. Use Standardized Checklists
The purchase of a vehicle comes with it an extensive amount of paperwork. A standardized checklist will keep you organized, proficient, and compliant.
As the F&I manager, completing one of these checklists is an essential part of your overall review.
2. Provide Systematic Training
In a survey conducted by Automotive News, 60% of the dealership employees say that F&I training has increased over the past five years. But with the ever-changing regulations in the financial industry, providing your team with a systematic training process will ensure that your dealership remains in F&I compliance.
3. Offer Product Menus
Even with the best training, it isn’t easy to recall every service offered. Menus are the solution. A comprehensive list of products and services will ensure that the customer feels informed and purchases what they need and want.
4. Prioritize Customer Satisfaction
According to Consumer Reports, customers want to be respected and don’t want to haggle, and they don’t want to feel like a pawn in a drawn-out game. The F&I process is time-consuming, but it can be made more efficient. You can reduce the time between the close and financing, ensuring the customer is satisfied throughout the process.
5. Focus on Compliance
The state and federal regulations for F&I compliance are in-depth. Non-compliance can be catastrophic. For this reason, your dealership must employ an in-house compliance officer who can regulate the whole process.
How to Seamlessly Build F&I Compliance
To achieve full compliance with the many laws governing auto service contracts, you must seamlessly build it into your F&I process. Determining the best practices to implement at your dealership will streamline the deal and ensure you are adhering to all federal and local regulations.
The ACE Group works with auto dealerships to streamline your business. Contact us today to see how we can help with your F&I Compliance.