Virtual F&I
August 2, 2022
Virtual F&I
August 2, 2022
Digital retailing, Virtual Dealer, Metaverse Dealership are all hot topics in the automotive industry today. These topics were accelerated since the start of 2020 and COVID-19, bringing the necessity of learning, working and “living” remotely a must. The mass adoption of zoom and other video conferencing technology has even further prepared today’s customer to engage with dealerships virtually. The question is how does Virtual F&I fit in and how can I effectively implement what customers are asking for without sacrificing F&I profitability.
First we must understand that some customers want this service and whoever provides it will earn those deals. We are not saying get rid of traditional F&I if its working for you, but engaging customers the way they want to engage has accelerated units delivered for digital retailing companies such as Tesla and Carvana.
The average customer spends nearly 15 hours to purchase a vehicle and 75% of that time is spent shopping online making it obvious customers prefer online. Virtual F&I will allow a customer to complete the F&I transaction online from the comfort of their home generally increasing customer satisfaction.
The process of Virtual F&I is really doing the same thing in a different way, which is a change for some automotive professionals and consumers alike, however it stands to be a win/win for the customer and dealership. Although we know the customer comes first, properly planned and executed virtual F&I can increase your operational efficiency, scalability and profitability across your organization.
The use cases and potential benefits to your business.
Centralized – This model is very beneficial for ensuring that the best F&I professionals are handling the transactions for several dealerships from one central location.
On-Demand – This allows an F&I manager from another store in a group to handle the transaction during busy times.
Remote – This model allows for your dealership to conduct F&I Transactions from anywhere and will definitely be essential for customers that expect their purchase can be done this way.
Benefits:
– Customers are never left waiting for an available F&I manager and the purchase is faster
– Your F&I managers get more turns which can not only translate to increasing PVR, but allowing them to personally increase their income.
– Ensuring that your most qualified F&I managers are handling transactions.
– Sales Managers that act as back up F&I can concentrate on their core responsibilities and generate profit in other areas
– Efficiencies of time and paperwork when customers are across state or out of state
– Provides customers with a smooth and enjoyable experience and increases CSI
– Nights and weekends where you may be slim on F&I professionals are no longer a concern.
– Sick days, PTO, Vacation are no longer a concern with these models either
The 7 things needed to successfully begin Virtual F&I are:
1. A technology solution to facilitate product presentations, Digital Retailing Platform (Darwin, AutoFi, etc)
2. Video conferencing software (Zoom, WebX, Microsoft Teams, etc) and hardware (proper lighting, microphone, and camera)
3. F&I product information packaged and available to the customer on the dealers website to create product awareness prior to beginning any F&I transaction (product purchases typically more than double when a customer is aware of a product prior to the F&I transaction)
4. A written process covering everything from the presentation, how to use digital drawing tools, how to effectively use facial expressions on camera.
5. Training/practice role play with scripts for your F&I team
6. A performance measurement tracking system
7. Legal council specific to your state regarding wet signatures and Right to Recission
8. A dealership champion leading the charge
