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Bryant Gibby

Bryant Gibby Used car manager

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Goals for the F&I department

     Like everyone knows, the finance department is arguably the most important department of the dealership. Dealerships are relying more and more for strong #'s from their finance department in order to be successful. With that said, the GM has asked me to spend time with our 2 finance managers and evaluate the entire department. I am going to review their #'s over the last 12 months and find areas where we can improve the department both in overall gross and product penetration. I'm happy to spend as much time as is needed with them due to the fact that I get paid on the overall gross generated from the sales department. If they do better, I do better.

 

     With that said, I know what we expect from them is a very lofty but attainable goal.  The reason I know our goals are attainable is because I was able to do them on a fairly regular basis. I did finance when times were better and banks were easier to deal with. So I'm wondering if it is a totally different game now and if the #'s that we did back in the day are still attainable.

 

Here's what we expect out of them:

  1. Warranty penetration: 55% with $1000 in markup
  2. Gap penetration: 30% with $400 in markup
  3. Credit life penetration: 12% with approx $150 in markup
  4. Chemical penetration: 25% with $200 in markup
  5. Etch penetration: 85% with $261 in markup
  6. Finance penetration: 75% with approx $350 reserve

 

In total, the goal is $1500 per car. That is new and used combined.

 

     I was wondering if those #'s are attainable or if the goals need to be modified due to current market conditions. Are there dealers who's finance guys are still putting up these kind of #'s?? Let me know

Heather Haynes
Bryant, As an F&I provider to more than 3,000 dealerships across the nation, we hear these types of questions frequently. It is our sole responsibility to help dealers achieve their highest possible levels of F&I performance. That said, while we do have many stores that demonstrate the penetration rates you have outlined, we also have some stores that don’t. Why? We believe in a four-part formula to determine a store’s commitment to their F&I business. The absence of any of these parts will hurt their chances to reach these high levels of performance. They are: 1.)A Dealer that is committed to the success of the F&I department 2.)Managers (in all departments) that are in support of a new process for the F&I and Sales department 3.)A Finance Manager that is trained and incentivized properly 4.)An F&I provider that is dedicated to helping your dealership reach its objectives – no matter what they are JM&A Group is committed to helping all dealers reach their goals. If you have any questions about what we can do for your F&I department, give us a call at 1-800-553-7146. Good luck!

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