Make Your F&I Profit Stick

Breaking F&I Records

2021 has been both an interesting and exciting year within the retail automotive business. Despite the pandemic, civil unrest, and shortages of every kind, dealers have been making more profit with less inventory.

In this episode, Becky Chernek shares her advice about how to Break F&I Records in 2022 and beyond so that car dealers are better prepared with a dialed-in process from first pencil to closed deal.

 

What we discuss in this episode:

• Becky explains why 2022 is going to be like the Chinese year of the tiger — how many car dealers are blinded by how well they performed in 2021 despite there being a pandemic and shortages.

• Can dealers sustain the same or more profit in 2022? Can dealers reduce charge backs?

• If dealers aren't doing everything they can to deliver massive results for customers, things are about to get real.

• Winning deals starts at the desk — we all know that deal starts with the first pencil.

• Why it's much better to have a customer close on a base payment than not

• Are paper F&I menus better than digital menus? Some seem to think so, but it really comes down to whether or not you are presenting the menu for the right reasons or not.

• Compliance is a big issue to watch out for not just in 2022 but in years to come. It's important to be on the lookout for poor behavior and to look for those deals that just seem too good to be true. Compliance issues will cause problems for your dealership and create blockers to your success moving forward.

• The first step to creating a solid F&I process is to write it out. Define how deals will get into the office. Define what's allowed and what isn't so that you never have to wonder how deals make it from the desk to your office.

• In the retail car business, there are actually more people who can mess up a deal than those who can make one. Shot-gunning deals generally does not put more deals together.

• Getting a deal should never be about shot-gunning to see what lender will pick it up first.

• Every deal counts today. There's not time to get complacent, not for you or your customers. Verify every deal, make sure it checks out, so that you can maximize the deal on the front and back-end.

• It is critical that the F&I manager meet with customers before bringing them into the office. Not just an introductory handshake, rather, verifying the deal for accuracy and going over the credit app line by line.

• Darwin provides a great digital menu, but relying wholly upon it and nothing else leaves many gaps in your F&I process. Think about it, nothing can replace the importance of building a relationship of trust with the customer and clearly articulating the menu in a way that shows you understand who you are speaking with.

• Becky suggests looking up Jeffrey Gitomer, who is as authentic as they come. He's written several books on sales, and Becky praises his down-to-earth, human approach to sales. Check out his information about objection prevention and objection cure.

• It's your job to make lenders want to buy your deal, and the best way to do that is to provide enough compelling information that makes them look past the credit score.

• If you want to increase F&I profit, you need to think about developing strong lender relationships. You might need to do a better job to justify the rate, the a lender relationship is about the bigger picture.

• If you don't have a written strategy, it is going to be impossible to execute the way you know you want to in 2022. It won't happen on a whim and prayer.

• Regardless of whether your hands are tied by a desk manager or old-school management, there are things you can do to assume control in F&I.

 

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Connect with Becky Chernek:

• LinkedIn - https://www.linkedin.com/in/beckychernek/

• Facebook - https://www.facebook.com/rebecca.chernek.1/

• F&I Today with Becky Chernek - https://www.facebook.com/groups/260984864044461

• Website - www.chernekconsulting.com

Welcome to Make Your F&I Profit Stick

Welcome to the newest car dealer podcast, "Make Your F&I Profit Stick" by Rebecca Chernek. The automotive industry is changing faster than ever, and now is the time to take your career in automotive to the next level.

Whether you're seeking to be the best in F&I or maybe you're an account rep and you want to learn what goes on behind dealer doors so that you can serve your customers better, Make Your F&I Profit stick is for you.

But who is Rebecca Chernek and why should you listen to this podcast?

In this episode, Rebecca (Becky) shares how she got her start in the industry, and what has led her to creating this podcast as a way to help retail automotive dealers gain practical insights from her years of experience in the business.

 

What we discuss in this episode:

• Rebecca's father owned a dealership, but never anticipated that she would want to work in a "man's business." She proved him wrong by cutting against the grain and claiming her stake as a powerful, record-setting woman in automotive.

• As a Saturn sales person, Becky learned the importance of selling value over price and how customers want to get the most value for their money.

• During her time at JM&A Group, Becky spent time across the United States working with dealerships of every size. This experience helped her understand the varying needs of each dealership based on size, culture, demographics, and so much more. She also witnessed first-hand that dealers who implemented a solid in-store process sold more vehicles, preserved more margin on the front and back-end of a car deal, and maintained long-term client relationships over those who were merely chasing numbers.

• A dealer who has some sort of a process will fair better than those who don't. That is more relevant in today's automotive industry climate than ever before and will continue to grow in relevancy with time.

• When Becky was made responsible for a large AutoNation store overseeing their F&I process, she was responsible for implementing a process and way of selling F&I that had never been done before.

• It was that innovation before it's time that led Becky to begin consulting dealers on F&I process and helping dealers from coast to coast implement a process that helps them drive significant performance.

• Being upfront with customers doesn't have to mean generating less profits. It can mean the exact opposite.

• Becky's experience working as the F&I director for a 14-rooftop dealer group brought her to a whole new level and was one of the best professional experiences of her life. She learned valuable lessons that have stuck with her and have helped others perform at an accelerated pace.

 

Subscribe to the show so that you never miss an episode!

 

Each week we'll release expert interviews, conversations and training on the topics below.

1. Why the rich get richer and how you can too

2. Which loyalty programs to stick with and which ones to ditch

3. How to win and influence people to get results that stick

4. Are tracks a thing of the past?

5. Is your F&I manager breaking laws

6. Overcoming objections in today's market

7. How to win at digital retailing

8. Breaking bad habits that cost you customers

9. Why tracking performance is critical to your success

10. How to protect your store against cyber attacks

11. How to present the menu

12. The best products to put on your menu

13. How to keep the menu simple

14. Time for a makeover

15. Strengthening broken relationships

16. Re-hashing isn't dead and why you should do it

17. Getting better support form your account rep

18. And so much more!

 

Connect with Becky Chernek:

• LinkedIn - https://www.linkedin.com/in/beckychernek/

• Facebook - https://www.facebook.com/rebecca.chernek.1/

• F&I Today with Becky Chernek - https://www.facebook.com/groups/260984864044461

• Website - www.chernekconsulting.com