CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
We have been putting a huge emphasis on funding lately. We have had some changes in our F&I department recently and it has led to some big time funding issues. I think we have always done a good job getting our deals funded quickly, but I have nothing to compare it to. I actually think that we don't give ourselves enough time to get our deals funded compared to most dealerships.
Our rule is that every deal needs to be funded in 14 days or less, otherwise the finance managers get penalized. The 14 days start at the actual date of purchase, not when the customer comes back in to finish up all the paperwork. There are tons of reasons as to why deals go past 14 days. The most common ones for us are: It takes a week to get the customer back to finish paperwork, the finance manager takes several days to cap the deal and get it upstairs, the accounting department takes too long to send the deal to the bank, and the bank issues a funding delay that takes a while to get resolved.
Every finance guy that has ever worked here has attempted to get the owner to change that policy and allow them more time to get the deal funded. Needless to say, the owner hasn't budged. I think it is an attainable goal, but everyone needs to be on their A game all the time. I was just wondering if other stores out there have similar policies or if we really don't allow enough time. Do you guys give your finance department 14 days? 21 days? What is par for the course inside of the business? Let me know your thoughts.