Putting F&I Online Increases Profits, MakeMyDeal Finds, from F&I Showroom.
ATLANTA —A new study from Cox Automotive company MakeMyDeal found that shifting F&I product information online could be the key to higher sales and profitability.
According to the MakeMyDeal 2015 Finance & Insurance Study, 61% of the 500 consumers surveyed believe that F&I products are just ways for the dealer to make more money. Additionally, 48% said that they would never buy anything other than the car from a dealership.
However, further results from the study indicate that the resistance felt in the F&I office is not about the products themselves, but about the experience. This is supported by the fact that consumers realize that F&I products may be beneficial: Eighty-four percent say they believe that F&I products may have real value, and 66% indicate that they think F&I products may save money in the long run.
“F&I is one of the biggest parts of the buying process that has still not moved into the digital age, and dealers have been hesitant to evolve this process because it’s a major profit center,” said Mike Burgiss, founder and vice president of MakeMyDeal. “However, our study shows that the current F&I process breeds consumer skepticism. By changing when and how the shopper is introduced to F&I products, dealers could see a dramatic change in consumers’ likelihood to buy F&I products.”