F&I and Showroom, Industry Summit 2013

Industry Summit 2013 F I and Showroom 79 dealerships are compensated for loan origination will change shortly However I do believe that the fi nance companies will do their best to fairly compensate the dealerships which may increase profi tability F I Whats your take on tablet menus Dupaquier My personal opinion has not changed since this topic was discussed at last years conference I have always believed that we should embrace technology and move forward with it However I do disagree with how many of the mobile menus are making it easy for a dealership to eliminate the business managers job function F I Can you offer any advice on how the F I offi ce can better engage sales and the Internet sales department Dupaquier We have pioneered processes that integrate business managers with the Internet department Some of the largest Internet departments in the United States are working our process PETER CHAFETZ Vice President of Training and Strategic Deployment Allstate Dealer Services A Trainers Take Wednesday Sept 18 at 11 a m F I Where do you see most F I departments going wrong while working with a customer Chafetz From our perspective most F I managers unwittingly make their jobs more diffi cult by talking at their customers This is the perfect recipe for commission breath Once the customer believes your actions are motivated by purely selfi sh motives they will naturally push back F I Do you think dealers are ready in terms of their compliance procedures for increased scrutiny Chafetz A fair share of dealers have had an Ill take my chances attitude with the current regulations Today that simply wont fl y It appears that the CFPB will step in on any consumer fi nance transaction they deem potentially unfair Items such as access to credit costs of credit presentation material and sales presentation wording and potentially predatory product pricing may all become targets for the CFPB F I Do you think dealerships are prepared to lose dealer participation as a profi t source if the CFPB has its way Chafetz The loss of reserve income has been discussed for more than 15 years but I believe now its on its last legs Dealers may soon discover that the cost to defend their F I practices may be greater than the income rate markups generate Once the fi rst lender moves to fl at commissions the rest will follow To prepare dealers need to make sure their F I managers are well rounded informed and most importantly effective If reserve dollars drop product sales will need to rise Note I said product sales not product gross profi ts F I Whats your take on tablet menus Chafetz Mobile technology may be appealing to a certain segment of the buying public but in my opinion its the belly to belly connection between the customer and the F I manager that will make or break the transaction Menus are tools designed to enhance the F I manager not the other way around LUIS GARCIA Vice President of Sales and Income Development Safe Guard Products International Master the Menu Tuesday Sept 17 at 3 p m F I Where do you see most F I departments going wrong while working with a customer Garcia The No 1 problem I encounter day after day is the failure of F I to work under a combined effort with the sales team In many dealerships these two departments work completely independently of one another and in doing so lose countless sales and reinforcement opportunities My training stresses the importance of bringing the F I and sales teams together I have had the privilege of working with hundreds of dealers across the country and the recurring commonality among the most successful is that the F I and sales teams operate under a combined and harmonious effort F I Do you think dealers are ready in terms of their compliance procedures for increased scrutiny Garcia Unfortunately I feel most dealers are not ready Dealers have historically taken more of a reactionary approach to these types of changes however one of my ongoing training goals is to help dealers become more proactive so that they are ahead of the game F I Do you think dealerships are prepared to lose dealer participation as a profi t source if the CFPB has its way Garcia The tightening up of dealer participation has been a topic of conversation for many years yet very few have adequately prepared for the complete loss of that income Dealers who heavily depend on this profi t center and who are not taking action to prepare for the changes may soon experience a sobering new reality My job is to help dealers overcome this dependency and to maximize more sustainable means of income development F I Whats your take on tablet menus Garcia Quite a number of F I managers have gravitated toward the mobile menu and have found it to be a good fi t for them I believe however that a well trained and naturally talented F I manager can be just as successful without it At the end of the day all dealers should be using some