Using the F&I Department to Boost Service Drive Revenue

Although the Finance and Insurance (F&I) department is traditionally focused on vehicle sales, it also holds massive potential for increasing service drive revenue.  This is specifically beneficial for automotive dealerships that desire to diversify their income streams and build lasting customer loyalty. Aa strategic approach can turn the F&I department into a powerful tool that drives repeat service drive business for long-term dealership success.

Building Bridges, Not Barriers: F&I as a Customer Retention Engine

The F&I department serves as a buyer’s last interaction with a dealership, yet its role in shaping a customer’s post-sale experience is often overlooked. A positive final impression can bind customers to the dealership. Focusing on the ownership experience is what will attract customers back for service.

For instance, when selling protection products such as vehicle service contracts, F&I staff should avoid saying that the VSCs are valid at other authorized facilities unless the customer lives far away. Doing so will drive customers to seek service elsewhere, reducing the dealership’s revenue. Instead, F&I teams should strengthen the connection by:

  • Highlighting Convenience, Not Competition


    F&I products, like VSC, allow repairs at authorized facilities countrywide— but downplaying this aspect is of absolute importance. Why? Every repair a customer makes at your service drive translates to additional revenue for the dealership. Point out the benefits of in-house maintenance to encourage customers to return to your service drive.

  • Building Relationships, Not Roadblocks


    F&I should approach each interaction with a potential customer as an opportunity to build rapport, even if a sale isn’t made that day. This personal touch and interest in assisting the customer will lead to future visits and purchases from that customers. Regular follow-up from the F&I department demonstrates genuine interest and keeps your dealership top-of-mind.

  • Streamlining the Process, Not the Pitch


    Long wait times in the F&I office can erode customer confidence and interest. While delays can happen due to information bottlenecks between sales and F&I departments, understaffing, or inefficient internal processes, it’s important to try and negate that waiting time so that customers don’t have the opportunity to overthink a purchase or talk themselves out of it. To mitigate such issues, gather all necessary client information beforehand. Practice F&I presentations regularly to deliver clear, concise information that doesn’t overwhelm the customer.

Breaking Down the Silos: F&I and Service Drive Collaboration

Many dealerships struggle with a lack of harmony between F&I and service departments. Integrating F&I and service-drive operations is a great way to boost revenue. Service advisors must be knowledgeable about F&I products and capable of recommending relevant policies, such as windshield coverage, tire and wheel protection, or vehicle service contracts when the factory warranty has expired. F&I teams should also engage with customers in the service drive, particularly during slow periods, to discuss available products and services.

Encouraging a strong connection between service and F&I departments can improve overall dealership performance. Service revenue not only contributes directly to the dealership’s profit but also drives sales. Data from Mastermind indicates that customers who service their vehicles at the dealership are 2.5 times more likely to purchase their next car from the same retailer.

Final Thoughts

The F&I department is an invaluable asset waiting to be fully utilized. Leveraging the F&I department to generate more revenue requires prioritizing customer retention and facilitating collaboration with the service drive. Remember, a loyal client base is good for a dealership’s bottom line. Implement these strategies and watch your F&I department become a key driver of ongoing dealership success.

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