Your F&I department, producing 30-50% of your net income, is your gold mine.
What is your canary in the gold mine? What warns you of impending disaster?
Your F&I department helps consumers manage risk; how do you manage the risks inherent in the F&I function?
Here are some best practices for monitoring the risks in the F&I department:1. An F&I review committee that meets regularly and reviews… 2. Trend metrics — how is your department performing over time on: a) PVR b) Penetration c) Turnover 3. The manager of F&I must be able to stand up to management, F&I managers and ownership. 4. Assuring you are complying with Federal and State Regulations. 5. The Director of F&I must not only use strong analytics, but also ask “Columbo”-type questions.
F&I risk management needs to combine left- and right-brain thinking. It’s easier, faster and cheaper to build the intuitive capability.
Vanguard can help you develop and implement the proper F&I risk-control system.