F&I: Finance and What?
July 22, 2010
Filed under Service Providers
In all the years I’ve worked in the motorcycle industry, F&I has always been a hot topic; it’s frequently mentioned at both dealerships and industry events. Regardless of the venue, you’re sure to hear about finance strategies, lender relations and increasing ROI. Why is it, though, that you rarely hear word one about insurance? In this tumultuous economy, paying more attention to the personal lines insurance needs of your riders at your dealership may provide you with a plethora of benefits.
For starters, obtaining insurance licensure and appointments for your F&I Manager allows you to sell insurance on-site, providing a significant revenue stream. The financial gain from the commission and renewal residuals is only part of the advantage. Providing this additional service helps make the customer’s purchase seamless. You may also be efficiently satisfying your lien holders’ proof of insurance requirement. Perhaps even more importantly from your perspective, completing the sale in one visit has eliminated the potential that the customer may not return to close the deal.
Bringing the “I” into the dealerships’ hands can increase the connection the rider will have to your dealership. Chances are, on the way to the F&I office, your customer will likely find some chrome parts he can’t live without, and will stop by the service department to schedule his maintenance. It all boils down to simple economics. Increasing your customers’ frequency to your storefront equates to more opportunities to sell your goods and services.