F&I and Showroom, July 2017

www fi magazine com 40 F I and Showroom July 2017 ACE I I attended an event at a football stadium The line to the mens restroom wound out the door as guys patiently waited their turn to use one of 19 urinals or five stalls Interestingly there was not a wait to use the four sinks This recurring theme has always made me shake my head with bewilderment so much so that I decided to conduct an informal unscientific survey of washroom attendants I have so far visited nine venues where a washroom attendant was on duty offering towels in return for a tip The consensus of those nine attendants is that a majority of guys do not wash their hands after using the facility Some of these restrooms had paper towels Others had air dryers A few had both My conclusion is that updating to the newest technology wont necessarily modify behavior If you are not inclined to wash your hands it wont matter what the drying method is Same goes for the kinks in the F I office If you are prone to powerbooking deals to meet the finance sources callback or underwriting guideline you will continue to manipulate the options on the bookout sheet If you view credit application fraud as a victimless crime you will continue to give people raises or stability or move them back in with their family instead of paying rent To you it does not matter that you are now committing potential bank fraud using the internet If you are a kink having electronic processes wont change your behavior They will only make it easier for people like me or the Federales to figure it out In fact eprocesses offer a huge benefit to the dealer principal who intends to run a transparent and compliant edealership Granted a kink can still pack payments using an electronic desking system just as easily as if she were still using a Sharpie and a four square But the edesking system tracks the history of the pencils Using edesking software I can tell what the first pencil is and whether it is compliant with the dealerships desking policy I can also tell if the manager had a credit approval in hand and quoted a payment in excess of the approvals max rate I can even tell if the number of days or number of payments per year were manipulated to pack the payment In fact it is easier for me or a member of the Dark Side to verify that the payments are packed when edesking software is used This is a huge benefit for the dealer principal It helps him or her understand who is following the dealerships desking policy and compliance training and who the kink is Dealers who try to convert from pulp to electrons often encounter resistance from sales managers They may even create barriers to implementation I can tell you from experience there is a higher percentage of payment packing at dealerships that still employ handwritten foursquares than those that have converted entirely to edesking I was listening to The Beatles Channel the other day The DJ shared a personal story Seems he was a Beatles fan growing up and he completed a sixth grade project discussing the legitimacy of the Paul is dead rumors I was impressed This guy knew he was destined to become a Beatles expert when he grew up and he fulfilled his dream Then I thought about all the little kids who say they want to be firemen or policewomen or doctors or nurses when they grow up So what did the kinks in our business want to be when they were little Did they spend time figuring out how to cheat at hopscotch and apply that to packing payments on four squares If so they will not be deterred by the introduction of eprocesses It will only make it easier to catch them Good luck and good selling ABOUT THE AUTHOR Gil Van Over is the executive director of Automotive Compliance Education ACE and the founder and president of gvo3 Associates Email him at gvo@ bobit com Kinks Will Be Kinks Electronic processes wont cure the kinks who flout the rules and regulations governing F I but they will make their bad behavior easier to track BY GIL VAN OVER DEALERS WHO TRY TO CONVERT FROM PULP TO ELECTRONS OFTEN ENCOUNTER RESISTANCE FROM SALES MANAGERS THEY MAY EVEN CREATE BARRIERS TO IMPLEMENTATION I CAN TELL YOU FROM EXPERIENCE THERE IS A HIGHER PERCENTAGE OF PAYMENT PACKING AT DEALERSHIPS THAT STILL EMPLOY HANDWRITTEN FOUR SQUARES THAN THOSE THAT HAVE CONVERTED ENTIRELY TO EDESKING