Auto and motorcycle dealers using MaximTrak Technology’s F&I Menu tool to help them customize and organize a more compelling aftermarkets products presentation are realizing PVR lifts of 28% and as high as 33% for the motorcycle industry, MaximTrak said today.
“We’re already seeing PVR increases of 30 percent. That is huge money,” reported Ralph Mahalaka Jr., Dealer Principal for Monroe Dodge-Chrysler-Jeep-RAM of Monroe, MI.
Buckeye Chrysler-Jeep-Dodge-RAM, Shelby, OH, is experiencing similar boosts in F&I profitability. “In fact,” said F&I Manager Fred Barabani, “we’re seeing increases in PVR and in total product penetration, and no customers are coming back complaining we neglected to explain or offer something to them.”
Both dealers participated in a study conducted by MaximTrak, which sought to understand how the use of menu-driven software in the F&I office affected F&I product sales outcomes and per vehicle retail.
The trial monitored car sales using at times no menu and at other times MaximTrak F&I e-menu software. When using the software, dealers reported new car vehicle service contract (VSC) penetration lifts of 32 percent and used car VSC of 33 percent.
Furthermore, the dealers also had new-car PVR and used-car PVR boosts of $302 and $203, each, respectively.
Dealerships in this study report back gross changes (over no menu use) of as much as $707 per deal, with an average of $210 per deal, on over 17,000 transactions.
Dealers in this study said menu software helps them observe and manage for peak outcomes, including:
- F&I department practices
- Penetration by product
- PVR by sale
- Identify staff members doing a great job selling in all key categories
- Or, which staff members require additional training to improve results
“Only software-based F&I menu systems can help F&I managers achieve repeatable business practices on every transaction,” noted Jim Maxim, Jr., President of MaximTrak Technologies. “By eliminating manual steps and standardizing the product presentation, this menu system streamlines process flow, speeds up the deal and makes more money for the dealership.”
F&I Manager Barabani, who had experience with other menu systems before trying the MaximTrak software, said he’s sticking with it. “This system is integrated directly with our OEM and also our DMS. It automatically checks and verifies that the product or products I’m about to offer a customer are correct for that customer and the type of deal, all which eliminate guesswork and missed calculations from the presentation,” he said.
Monroe Dodge’s Mahalak especially likes how the eMenu software streamlines leasing. “As we do a lot of leasing, this menu system gives us a clean and easy lease presentation that helps us laser beam on what we’re selling, therefore sales go up,” he said.
“We actually offer fewer products on the menu now, so more time is available to spend on what we sell best,” he adds, “and built-in reporting tools give us daily insight to what our finance managers are accomplishing for the week, month and year to date, which helps with accountability,” Mahalak said.
Ron Green, GM and VP for Safford Chrysler-Jeep-Dodge-RAM, Springfield, VA, also participated in the trial. “My main driver for bringing this menu system into our store is my belief in full disclosure, ensuring we performed a complete and legal presentation with every customer,” he said.
“Our per back-end gross on every car through our F&I office, since adopting this menu system, averages $1,072 per vehicle,” says Safford Chrysler GM Green. “Since we’ve been using the MaximTrak software to guarantee compliance in our F&I processes, our warranty penetration, GAP and prepaid maintenance product sales have all gone up as a result.”
MaximTrak Technologies, Inc. is the automotive, motorcycle, boat, RV, and power sports industry’s premier F&I Menu and Reporting Systems provider. The MaximTrak platform is designed to transform the vehicle delivery process into a customer friendly program that converts conventional F&I wisdom into consistent, repeatable and sustainable results. For more information, call 1.800.282.6308 or visit www.maximtrak.com.