December 20, 2024

    The Importance of Outsourcing F&I Solutions for Your Dealership

    If you run a car or a bike dealership then one of the smartest moves that you can make is to outsource your F&I solutions, to a company who are experts in this field. Finance and Insurance is the area of you business which is needed for every sale, lease and extended warranty, and it is an area which your business shouldn’t bother trying to take on, at least in the early years of your business ownership. There has been a great many examples of why this is so important, and we are going to take a little bit of a deeper look today as to exactly why this should be an area of business which you hand over to the pros.

    Failure

    The most common reason for car dealership business failure is financial mismanagement, either as a result of the dealership itself not making smart moves, or the customers who have failed to pay their way. This is of course a critical aspect of running any business, not only a care dealership, but it is something which you should ensure is taken care of by experts. The division of finance and insurance should be outsourced and handled by a dedicated team of professionals who understand the system and the proper way to calculate risk and assess the customers.

    Dedicated

    The team that you will outsource to will be dedicated professionals at handling finance and insurance, which in turn allows you and your business to get back to the matter of dedication, which is of course selling vehicles. When you recruit a new salesman or saleswoman, you are not doing so based on their ability to process insurance documents, but rather on their ability to sell warranties, vehicles and insurance. Let your staff get back to what they were hired to do, and give the F&I to a team who were hired to do what they are good at.

    Speed

    When a customer makes the decision to buy a car they want to walk out to that forecourt with their fresh pair of keys, start up the engine and leave in a brand new motor. What the customer does not want to do is sit in the office for multiple hours whilst you try to navigate your way through a financial system. In outsourcing this aspect of the business you will be able to speed up the operation and give the customer a slick experience which sees them roar off in their new vehicle as soon as possible.

    Efficiency

    Outsourcing can only be considered a cost when it does not provide a solution, and in the case of F&I you have to look at this as an investment which will increase efficiency and actually help you to save money in the long run.

    If you aren’t sure what areas of your business you should be outsourcing then look no further than your finance and insurance department.

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