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Insignia Group

Insignia Group Automotive Software Provider

Exclusive Blog Posts

What You Should Focus On Instead of Service Sales in the Final Quarter

What You Should Focus On Instead of Service Sales in the Final Quarter

Well into the last quarter of 2018, most service managers are looking at the DOC and wondering if they’re going to achieve their target. And if n…

How to win the BIG Pot of Money in Today’s New Car Game

How to win the BIG Pot of Money in Today’s New Car Game

This is a guest post from Brian Finkelmeyer, Senior Director of Business Development of vAuto.  He'll be speaking at the 2018 DrivingSales Ex…

Mercedes Celebrates New $1 Billion Electric Car Battery Plant

Mercedes Celebrates New $1 Billion Electric Car Battery Plant

On October 5, Mercedes Benz held a groundbreaking ceremony to celebrate the beginning of construction on a new $1 billion battery factory in Tuscaloosa, Al…

Understanding the Three Tiers of Automotive Marketing

Understanding the Three Tiers of Automotive Marketing

According to a recent study, U.S. advertisers spent more than $205 billion in 2017 alone. This means that although digital marketing is changing the face o…

How Much is Your BDC Agents Overtime Truly Costing Your Dealership

How Much is Your BDC Agents Overtime Truly Costing Your Dealership

Designing a pay plan focused primarily on commission on the dealer level is not uncommon; in fact, the entire premise of the pay plan is “the more ap…

Top 3 Reasons F&I Managers Need Accessory Sales

The vehicle personalization beast is growing--and it needs more room. Your showroom isn’t big enough to contain the personalization mammoth anymore. Personalization is stretching its limbs into F&I, and your finance manager ought to receive Gargantua with open arms. While it’s a widely known fact that accessorizing vehicles at the point of sale benefits your bottom line and your customer, the benefit to all departments is less commonly agreed on. There’s a misconception when it comes to F&I.

An accessorized truck

To plainly debunk the myth, finance departments can (and do) benefit from accessory sales. Dealerships must understand that customers who purchase accessories do not affect the ability to sell service contracts or extended warranties--and here’s why:

Mindset is everything | Customers are willing to buy finance products when there’s a sense of attachment to their new vehicle.  A personalized vehicle, providing that attachment, has a much better chance of withstanding the 3-4-year trade-in cycle in comparison to its non-accessorized counterpart. The “back-end” F&I products like theft recovery, maintenance programs and GAP insurance that maximise gross become even more attractive. Customers fully engaged in their new purchase--a vehicle suited to fit their lifestyle--see the value in protecting their investment.

Trey Bodwin Insignia VPE 

Meet the author of this article Trey Bodwin. Trey is Insignia’s VPE in Texas who spent a few years as a Finance Director for Russel & Smith Automotive Group. Trey wanted to share the awesome benefits that vehicle customization can provide for your dealership’s finance department. See how our other VPEs can help your dealership increase accessory sales with their consulting.

Banks are playing ball | Many banks today will grant their customers front-end and back-end room to maximize a dealer’s profitability. Though subject to variation based on credit ranking and the financial institution, F&I will reap the benefit of rolling accessory sales into the monthly payment plan. More banks today will pay higher reserves and flats to the Finance Department depending on the amount being financed. This means that Finance Departments are even more likely to add gross to their back-end by financing vehicle accessories.

Used Car F&I is included | Banks are very competitive with rates and advances today. Though retail rates vary with the market, one thing is consistent: most financial institutions today will provide special rates and advances on used and certified pre-owned vehicles. This means used car F&I is in the same game as your new car showroom with front-end and back-end advances motivating customers to personalize and protect.

OnTrack Accessorizing

As the old saying goes, one good decision leads to another--and this rings true with your customer’s buying habits. Personalizing in the showroom at the point of sale is in every department’s favor--especially F&I.

Click through to read our Industry White Paper on Accessories vs. F&I.

Never gave thought to the fact if someone buys with accessories they are more likely to feel a greater sense of ownership to the vehicle and then, in turn, be more likely to buy products in finance to protect the vehicle... smart! 

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