The F&I Director
the go to person
This is an older post from back in 2011 while working with Ford. We are just pulling this out due to this is the subject in today’s lunch conference..Hopefully you will enjoy revisiting this past blog.
The Finance Manager of today is an individual that exemplify the virtues of a true professional. He / She are to act with integrity and conduct business in accordance with the highest standards of ethical conduct. The F&I Manager should have the knowledge and ability to comply with Federal, State, and Local laws both personally and professionally.
The duty of the F&I Manager is to ensure that every customer has all repayment, risk management and vehicle protection options information and this information has been reviewed and explained to enable them to make an educated decision in connection with the purchase. The F&I Manager must fully disclose to the customer the cost, terms, and contractual obligations of any finance / lease transaction.
1. Secure the Sales: The F&I Manager must always ensure the vehicle is sold, stay sold, and gets delivered and that the front-end profit remains intact.
2. Help the Customer: Review with the customer the options and services the customer is entitled to from Ford Motor Company and the Dealership. Discover by consulting the reasons why the customer needs each and every product offered by Ford and the Dealership.
3. Make a Profit: The F&I Manager’s performance is judged by how much money he / she generates for the Dealership. Profit is generated by discovering a need for the various products the Dealership offers and closing the customer on that need.
4. Protect the Dealership: The F&I Manager is the point person when it comes to ensuring everyone is familiar with the laws and regulations for obtaining and using customer credit information and quoting payments and interest rates. Everyone involved in the sales process is responsible to comply with Regulation Z, Regulation M, the Sherman Antitrust Act, the Gramm-Leach-Bliley Act, the Patriot Act, the Equal Credit Opportunity Act, the Credit Practices Rule, the Fair Credit Reporting Act, the Magnuson-Moss Act, and so on. The F&I Manager must be familiar with these laws and regulations and must continually train the entire staff on to make sure all parties are in compliance.
5. Create a Lender Relation: The F&I Manager must be able to develop a long-term mutually beneficial relationship with the finance sources and the dealership.
6. Monitor Performance: The F&I Manager must measure the F&I Department’s performance as to penetration, profits, charge backs and customer satisfaction. To track profit per retail, profit per product and compare current records with the previous month and previous year.
7. Train Salespeople: Part of the F&I Position is to train sales and management. This includes training the entire staff on compliance and regulations. Training on how to complete all the paper work, what they can ask, and what lenders are looking for. Training also includes conducting a proper turn-over, how to provide an introduction to the F&I Department and how to set the stage for F&I products.
F&I Department Responsibilities:
• Ensure all paperwork is completed right the first time.
• Ensure that 100% of the deals have been Turn Over to the F&I Department at the time of the sale.
• 400% rule (Present 100% of product to 100% of the customers, 100% of the time, and with 100% of enthusiasm).
• Have one to one caching with the sales staff.
• Follow all Red Flag, OFAC, and Information Safeguard rules to protect the dealership.
• Handle non-compliance and non-negotiable immediately.
• 100% compliance of the Active Turn Over.
• Coach and Praise successful sales people and management.
• Work all lenders for a positive call on every deal.
• Protect the front end gross profit.
• Know All manufacturer and bank programs.
• Ensure all deals are funded in a timely manner.
• Work the sales desk whenever possible.
• Review scoring sheets weekly.
• Lead a “Save A Deal” meeting every day.
• Have 15 minute huddles to review pending deals.
F&I Department Meetings:
• Hold a daily Save A Deal meeting with Department Heads.
• Hold a weekly sales meeting with the sales team
• Hold a monthly compliance meeting to review new and current regulations.
F&I Department Reporting:
• Provide a MTD penetration and performance report.
• Provide a MTD sales person report
• Provide a submittal report on the submittal of all F&I products and services.
• Provide a daily Contract in transit report.
The F&I Manager must be able to capitalize on changing conditions and turn the challenges to these changes into profit-generating opportunities. To do this, the F&I Manager need access to consistent training in house and with the Dealership’s assigned vendors.