SEPTEMBER 28, 2017

F&I is one of the most important departments and biggest profit centers in an auto dealership. The WardsAuto F&I Resource Center keeps F&I professionals up to date with the latest trends and best practices so they can perform their jobs more effectively and profitably. Visit the F&I Resource Center regularly to stay on top of your game.

Used Car Leasing: An Idea Whose Time Has Come…Back?

A recent AlixPartners report probably confirmed what auto retailers suspect about the effects of millions of off-lease vehicles hitting the market. The report predicts a “double-whammy” to new-vehicle sales: displaced sales to cheaper used vehicles and increased lease payments on new vehicle, because leases will get written with anticipated lower residual rates and tighter credit standards.

Digital Customers Want Full Monty of Functionality

Most automotive consumers want auto dealership websites to offer an array of user functionality beyond focusing merely on what vehicles are for sale, says Max Steckler, vice president-global products for CDK Global, a dealership-information services provider.

Four Reasons for Auto-Dealer Optimism

Brian Allan of Galpin Motors, which includes the world’s top-selling Ford dealership, offers reasons he’s optimistic about the auto-retailing business despite softening sales. He says it’s easy to get caught up in news about declining vehicle deliveries. (A seasonally adjusted annual sales rate of 16 million units in August finished well below the 16.5 million-unit SAAR expected for the month, according to WardsAuto data. It was the lowest SAAR since February of 2014.)

Auto-Loan Balances Hit Record $1.1 Trillion

Outstanding automotive loan balances in the U.S. set another record in this year’s second quarter, reaching $1.1 trillion, up from $1.027 trillion at the same time last year, according to credit tracker Experian. Credit unions saw the highest rate of growth. That lending segment has actively pursued more auto-loan business in recent years, and the effort is paying off.

Online F&I Depends on Car Dealership Culture Changes; Upgrades

Among discussions about how technology might change the dealership finance and insurance department, little has been mentioned about demands it will place on a store’s infrastructure. Online F&I will change two essential backbones, IT infrastructure and dealership culture. Some say the latter is the most significant facing dealers.

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