The billion-dollar automotive industry is heavily regulated, and complaints commonly involve transparency and reliability of finance and insurance (F&I) products. In 2014, F&I contributed approximately 40% of the gross profit of new and used vehicles.
Why You Should Partner with an F&I Provider
The cyclical nature of auto maintenance accounts for the increase in gross profit for car dealer businesses. Any car dealer would want to maximize this upsurge income source without causing legal concerns. A strategic way to do it is to partner with a reliable F&I provider.
Lengthy Process and Lack of Transparency
A lengthy process is the number one source of buyer frustration. On average, the car sales process runs for 90 minutes. The lengthy and often non-transparent process of some F&I companies affects the credibility of the industry as a whole.
You should look closely at the licensed feature, its exclusivity clause, ownership of custom modification, and data when seeking a licensing agreement. It is essential that auto dealers enhance their protection as owners, especially when it comes to specifications on licensing technology.
Auto dealers who are not knowledgeable about the technicalities of F&I products will likely fall prey to the golden promises of insurance agents. This results in complications when automotive businesses realize the limited coverage of the protection benefit as compared to what was promised by the agent.
The Association of Finance and Insurance Professionals, for instance, advised F&I dealers to avoid using misleading or grand descriptive words like “best” when referring to their F&I products.
Credit Scores Disclosure
As a car dealer, pulling out records of car buyers is legal. But refusing to show customers their credit scores and choosing to quote a price range for contract payments are not. When making a quote for annual percentage rates, the industry best practice demands the exact details, lest it falls into payment packing malpractice.
This vulnerability paved the way for auto dealers to offer F&I products that also now offer secure credit checks, as well as pin-enabled facility to protect your business from identity fraud. Make sure your F&I provider has adequate protection for your clients.
Company reliability is a perennial consumer concern. Auto service contracts, for instance, promise consumers a specific amount for car repair services over a certain period.
Consumers often complain about under-coverage or poor service. A long, arduous authorization process for claims leads car owners to resort to external service shops, paid out of their own pockets.
Reading fine print, choosing add-on options wisely, and partnering with a reliable F&I product provider are keys to protecting your client’s interest and sustaining the business success of your car dealership.
The ACE Group: The Right F&I Consulting for Your Automotive Dealership
If you are looking for an industry leader that deals with automotive consulting products, The ACE Group is the right partner for you. We are experienced and highly innovative, allowing us to tailor fit a sales system for your business.
By partnering with us, you have our wealth of expertise at your disposal. If you want something specific, just reach out, and we will get it for you.
If you’re looking for a trusted F&I solution provider for your car dealership, don’t hesitate to contact us today.