Today’s car buyer is more informed than ever, and even though finance product awareness is increasing, approximately 1 out of 4 buyers are NOT already aware of F&I Products before going to a dealership. On average 75% of dealer’s customers are not aware of the products that are available to them and the protection options that may apply to their purchase.
Interestingly, F&I product purchases are higher among customers who are already aware of the products before going to a dealership. Information about products allow buyers to become familiar with the future risks or ownership and reduce the initial resistance when met with the finance professional.
A good way for dealers to increase their PPR is to educate consumers about the Finance Products that are available to them before the purchase. Creating educational resources for consumers to understand the value proposition in simple terms allows a more productive conversation with the finance professional.
On average dealers have 8-12 products available on their menu to present to their customers. While some customers might be familiar with a vehicle service contract, GAP or tire and wheel protection, most have never heard of Total Loss Protection, Vehicle Return Programs or even Key Replacement. By providing consumers with a way to learn about these finance product dealers have the upside of more product sales.
If dealers don’t want to alter their website, try to provide consumers with opportunities to learn more about F&I Products during the sales process. IPads are a great way to accomplish this with some product summaries for customers to review. Another idea would be to incorporate this information in the interview process. The ultimate goal is a consumer that has a foundation of what is offered for a better conversation with the finance professional.