F&I in The Amazon & Carvana Age
“The sky is falling!” says Chicken Little.
If you know the fable it’s the tale of a chicken that wanders into the woods and is hit on the head by a falling acorn and takes that to mean the sky is falling. The story gets more interesting as Chicken Little, hysterically claiming the sky is falling, runs into other animals and creates spreading panic amongst the animals.
So, is the sky falling? Not really.
Yes, Carvana is selling a lot of cars online. Yes, Amazon has put brick-and-mortar businesses out of business and has taken the online buying experience to a whole new level. But, this doesn’t mean auto sales — and in particular F&I — is over. They sky is still overhead and people are still buying cars and F&I products in dealerships.
That said, we must acknowledge that the way in which they buy them is definitively evolving. The speed in which they expect to be taken care of is also evolving. We have an opportunity to continue to create and fill the need for customers, but, we need to isolate and target what they really want. To that point, companies like Weathertech makes millions selling all-weather mats. Smart branding and continuous ad campaigns that promote a superior products are what drive sales.
When it comes to financing a vehicle and insuring it with F&I products rarely will customers do it on their own without some assistance. Even Carvana makes phone calls to their buyers to review loans and offer Vehicle Service Contracts. Leading us to the conclusion that — wait for it, wait for it…
Customers STILL buy F&I Products!! You just might have to call them!!
During my time in retail some of the best deals I put together we’re over the phone. Don’t be afraid to reach out and grab that prospect who stopped by your showroom to see the car first hand but might decide to buy online! And if your sales team does not feel confident on the phone, US Dealer Development offers a phone selling system for your F&I Managers that WILL get results.
Recent Comments