How traders can focus on best practices and financial stability

In today’s increasingly digital world, the automotive industry is facing a growing number of operational challenges. The recent cyberattack that affected thousands of dealerships across the country is just the latest example of how dealers, executives and dealership managers must constantly look at the bigger picture and consider best practices.

Cybersecurity is certainly at the forefront of our minds given recent events, but there are three key areas that retailers should pay particular attention to in order to ensure operational success after the summer months.

Ensuring closer R&I process integration with all departments

F&I has proven to be a significant source of revenue for auto dealerships. F&I plays a critical role in ensuring customers leave the dealership satisfied, informed, and confident in their purchase. However, to achieve this level of customer satisfaction, every department in the dealership must understand and support the F&I process.

While the F&I office is responsible for managing the financing and insurance aspects of a vehicle purchase, every department has something to do with F&I, including sales and fixed operations. It’s important that all employees understand their F&I roles and responsibilities. This includes being knowledgeable about product offerings and gathering enough customer information to ensure a smooth handoff to the F&I team.

R&D training and communication in all departments

The sales team is often the first point of contact for customers, so their understanding of F&I processes and products is critical. Dealers, F&I program providers and/or representatives must provide regular training to educate sales personnel on F&I products and their benefits. This allows salespeople to introduce these products early in the sales process, laying the foundation for a seamless transition to the F&I office.

Dealers must always encourage open communication channels between sales and F&I. Sales staff should provide F&I with all necessary customer information to streamline the process and reduce wait times.

The service department also plays an important role in assisting with F&I, especially with claims and warranty service. Service advisors should be very familiar with the details of the dealer’s various service contracts and protection plans so they can accurately communicate coverage options to customers and answer any questions or concerns.

Service teams must also know how to efficiently manage protection plans and work closely with F&I administrators to expedite the claims process and minimize customer inconvenience.

Customer care teams are critical to maintaining long-term relationships and ensuring customer satisfaction. To ensure effective integration with R&I, these teams must collect and analyze customer feedback on their R&I experiences. This information can help identify areas for improvement and ensure continuous process improvement.

Focus on financial stability

While addressing these key areas for operational success, dealerships must also look for ways to increase their financial stability and growth as a form of financial security and independence to ensure their long-term profitability and security.

When considering wealth building programs, dealers should thoroughly analyze their current F&I product offerings and market demand. This assessment will help determine the potential benefits and challenges they face when transitioning to a new program, such as a reinsurance structure, a dealer-owned warranty program, or a hybrid solution. Dealers should work with a trusted wealth building program administrator to create a comprehensive plan that outlines the program’s structure, objectives, and operational processes. This plan should include strategies for marketing products, processing claims, and ensuring compliance with applicable regulations. These experts can provide valuable insight and support throughout the process.

Once the decision has been made on a program type, dealers, their administrative partners and representatives can ensure that employees are well trained in the F&I program offerings and processes.

Merchants should also check with their administrator and representative on a regular basis to review the performance of the program and make any necessary adjustments to optimize its effectiveness and profitability. Ongoing evaluation will help ensure that the program continues to meet the needs of both the merchant and its customers.

The automotive industry is clearly navigating a complex landscape of challenges – both cyber-related and operational. It is critical for retailers to proactively address these challenges to maintain customer confidence and operational integrity. At the same time, dealers must explore wealth building opportunities to improve their financial stability and growth. By implementing a comprehensive approach to operational success, leveraging innovative business strategies and a strong wealth building partner, dealers can secure their future and thrive in today’s changing industry.