Outside The Box – Expert F&I Roundtable | Daily Dealer Live
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Company
Hennessy Automobile Companies
Hennessy Automobile Companies is a group of car dealerships that sell different brands of cars, like Mazda and GMC. They have been in business for a long time, over 60 years.
Brand
GMC
GMC is a car brand that makes trucks and SUVs. It's part of a larger company called General Motors.
Concept
add-ons
Add-ons are extra services or products that you can buy when you purchase a car. They might include things like insurance or extra protection for the car, but you don't have to buy them if you don't want to.
Term
gap insurance
Gap insurance helps you pay off your car loan if your car gets damaged or stolen and is worth less than what you owe. It covers the difference so you don't have to pay out of pocket.
Term
service contracts
Service contracts are like extra insurance for your car that help pay for repairs after the original warranty runs out. They can save you money if something goes wrong with your car later on.
Concept
three day return policy
A three day return policy means you can bring back a used car within three days if you don't like it. It's a way to make sure you're happy with your purchase after you've had a little time to think about it.
Term
extended warranty
An extended warranty is like extra insurance for your car that helps pay for repairs after the regular warranty runs out. It can help you avoid big bills if something goes wrong.
Term
tire and wheel protection
Tire and wheel protection is insurance for your car's tires and wheels. If they get damaged by things like potholes, this coverage can help pay for repairs or replacements.
Car
Toyota Corolla
The Toyota Corolla is a small car that many people buy because it's dependable and gets good gas mileage. It's very popular around the world.
Term
F and I products
F and I products are things that dealerships offer to help you with the financial side of buying a car. This includes things like insurance and warranties that can protect your purchase.
Term
F and I menu
The F and I menu is like a menu at a restaurant, but for car buying. It shows you all the extra services and protections you can buy when you get a car.
Concept
negotiation free buying
Negotiation free buying means you pay a set price for the car without haggling over the cost. It's straightforward and can make buying a car less stressful.
Concept
traditional negotiating
Traditional negotiating means talking with the salesperson to agree on a price for the car. It can be a bit like bargaining where you try to get the best deal possible.
Brand
Volkswagen
Volkswagen is a car company from Germany that makes many popular cars, like the Beetle and Golf. They are known for their reliable and well-engineered vehicles.
Term
clear bra
A clear bra is a special kind of plastic film that you put on a car to protect it from scratches and damage. It helps keep the car looking new for longer.
Term
labor rates
Labor rates are the fees that mechanics charge for their work on your car, usually calculated by the hour. These rates can go up over time, making repairs more expensive.
Term
parts pricing
Parts pricing is how much you have to pay for new parts to fix your car. Prices can go up for various reasons, like shortages or increased demand.
LIVE
Hey everybody, welcome to another edition of The Daily Dealer Live!
I'm your host, Sam Dark, and thanks for joining us today in this gathering
place for all automotive to learn, to share, to have a voice.
And welcome to Fixed Ops Friday.
Wait, except I got to be honest with you, today is not Fixed Ops Friday.
We were talked and convinced by you, our listening audience, to turn Fixed
Ops Friday today into Finance Friday, limited time only, more on that coming up.
Today, we're taking you outside the box, the FNI box with a round table, a very
special round table with a slew of talented professionals in the FNI
department. For those joining our live stream, we're live across all CDG
social media platforms. Post your comments, we'll bring them into today's show.
And folks, what a show we have in store for you today.
We'll have more on that in just a moment.
But first, let's dive into today's industry news.
First up today, we turn to the CDG buy, sell tracker, Atlanta luxury motor
sports motors scoops up two stores from Hennessy.
Hennessy automobile companies has sold Hennessy Mazda and Hennessy GMC in
Morrill, Georgia to ALM Automotive Group, marking the family's first dealership
sale in its 60 year history.
The deal expands ALM's footprint across the Atlanta Metro, where the group led
by owner Katya Batya has operated for nearly two decades in Georgia and the
Carolinas, according to dealer advisors, Kerrigan advisors.
Big picture, GMC leads all domestic brands in 2025 sales growth.
While Mazda remains the fastest growing import brand since 2019, making
both strong additions for buyers looking to scale in high demand Sunbelt
markets. And don't forget, you can see this deal announcement and track all
the other announcements throughout the entire year.
We've got our own jingle makes me so happy on the buy, sell tracker at CDG
buy, sell CDG buy, sell dot com.
I mean, come on, who else in automotive has their own?
Well, everybody has their own jingle, but we've got our own CDG buy, sell dot
com jingle. Next up today, Gav Governor Gavin Newsom, not my governor, has signed
the California combating auto retail scams act sound familiar.
It is or cars act.
It's a sweeping new law aimed at protecting car buyers and reshaping how
dealerships operate across the state.
We've seen this before.
The legislation sets stricter standards for both new and used car sales, banning
misleading ads or pricing prohibiting dealers from charging for add-ons that
don't benefit customers and requiring that optional products like gap
insurance or service contracts be clearly disclosed.
It also gives buyer a 10 day payment window for add-on products and introduces
a three day return policy for used cars under 50,000, as long as the vehicle
isn't damaged and has fewer than 400 miles added.
The cars act bottom, what's the bottom line here?
Well, the cars act is one of the most significant consumer protection measures
in California auto retail in decades, shifting the culture towards transparency
and trust, says California's governor Newsom.
Dealers now have a year to upgrade systems and prepare for new compliance rules
before it takes effect in October, 2026.
If it sounds familiar, it is because I think it was the state of Texas Supreme
Court that overturned the rule on a federal basis.
Maybe some of our panelists may have an opinion on that coming up today.
Last up today, identity theft in auto lending averaged just over 3% in the
first half of 2025 after spiking briefly to five and a half percent in May,
which if you think about it, that's a big percent.
During a wave of coordinated attacks on select lenders, according to new data
from CentiLink, the report says the surge was driven by fraudsters exploiting
lender underwriting gaps and dealer channels with telltale signs, including
mismatch phone or email data, suspicious domains and risky carriers.
And despite synthetic identity fraud, where fake or partially fabricated
IDs are used, falling to under 1% remains one of the most affected sectors
across any major consumer finance market outside telecom.
Looking ahead, the rise of deep fake AI, digital quote, warming schemes
and sophisticated theft rings underscores that fraudsters are evolving
as fast as lenders can respond, making real time cross industry fraud
intelligence and dealer level vigilance the next crucial defense in auto retail.
It is fascinating to see how much potential fraud there is out there as people
try to take the increasingly more expensive vehicles away from dealers.
So that's a wrap on today's news.
All right, today, everybody, we're excited.
And actually, so let's let's do this.
And and Marv 48 says Larry Vantel companies bought two stores in California.
Thanks for checking in.
John Roper says identity theft isn't a joke, Jim.
And you're absolutely 100% right.
And Supervisor Supervisor Dan says nights of the roundtable today,
Lauren Klein, F and I Friday.
It's exciting to be here.
We'll get into a little bit of the why it's F and I Friday.
So today we're tackling an all important question in automotive retail.
What is the current and future state of F and I in automotive?
For decades, F and I has truly been the backbone of dealership profitability.
It evolved into it seems maybe the late 90s, early 2000s, and the industry is evolving.
Digital retailers growing customer expectations are shifting, including
evolving attention spans and even tech giants are entering the F and I space.
So the big question we're asking today is this, is F and I evolving and remaining
a relevant and key profit center or is the department at risk of being
overtaken by tech or consumer preference to explore that?
I'm excited to have a an elite panel of F and I professionals joining me today
from the Nilo company leading finance operations across 11 luxury brands.
Welcome to the show, Dennis Gingrich.
Dennis.
Hey, welcome to the show.
And from Pinebell Chevrolet, a high volume
dealership or speed and consistency drive success, Trevor Caulfield.
Trevor, welcome to the show for having me.
And from Goldi Otto, overseeing F and I for both CDJR and Mitsubishi.
Jonathan Blaine, welcome to the show.
Thanks for having me.
And from GSFS group, Gulf States Financial Services, bringing the perspective
of a national F and I product and training provider.
We welcome to the show, Wayne Higgins.
Wayne, welcome to the show.
It's Wade, but no problem with the deal.
Wade, you know what? I apologize.
I apologize. It's my eyes. It's the typo.
You got it. Thank you, Wade.
Thank you for being here.
And so, Dennis, how did we end up coming to
Finance Friday instead of Fixed Ops Friday?
I understand that, you know, as soon as we announced what we were doing as far as
Fixed Ops Friday, you said, hey, wait, it can't always be Fixed Ops Friday.
Variable needs to have a voice in this.
How did that come about, Dennis?
I mean, this is just facts and data.
I know one of our stores had a second best ever and fixed and who carried it?
Use car recon.
So, Tully, that's why we're doing Finance Friday here today and not Fixed Ops Friday.
And just for everybody's benefit, we will be back to Fixed Ops Friday next week.
And we love Fixed Ops.
We love Fixed Ops Fridays and what it's becoming over time.
But today we are launching into F and I.
So let's start out.
Amazon Autos has launched nationwide with financing through Chase, Santander and
Wells Fargo and they're expanding rapidly.
But here's the gap.
They were on my show on the industry spotlight a couple of months ago
with the president of Sonic and they admitted on that show.
They said, look, we have not fully solved for F and I.
We're working towards it.
We think we're going to get there.
But the adoption rate or the penetration rate for finance products isn't as good
in an app as it is with a live person.
So here's my question.
What's the difference and will they eventually solve for it?
And how long will it take for them to solve for it?
And for that, actually, let's turn to you, Wade.
You see how complex it is in your training rule.
What's the difference between Amazon Auto, the app and a real live person that a
customer sits in front of?
Well, I think that there's a lot of questions when it comes to F
and I, when it comes to F and I products, regardless, not to mention,
you know, you have menus with eight, nine, ten products sometimes on them.
And it's a little overwhelming for consumers.
And so if it's just an app that they're looking down at and they have a lot of
questions, they don't get to have that interaction, not to mention there's a whole
process that goes into the F and I office.
And I know these guys that are on this panel today can get into their processes.
But that process takes time and it takes communication.
And there's a whole investigation when it comes to the consumer of what their needs
are. And I think if there's just an app, it's much easier just to say, no, when
I'm not informed that it is to, you know, have a discussion with a live human.
We see it all the time.
And that's where we're most successful in our most successful dealerships or when
you can actually communicate with a person.
Yeah, Dennis, what's the difference between Amazon and you and your team at Nilo?
Well, you know, I think the big thing is it's not only Amazon, a couple of the other
big box players have tried and about the most riveting thing they say is moving
that product selection around the overall process and the penetration remains.
They stay low, but I think the big thing is with AI, it's not sent in it, right?
It can't pick up on feelings and vibes from a customer the way a human being can.
And, you know, I don't think it'll ever get there.
I could be totally wrong there.
But I think that's the difference because when we're talking about FNI products,
we're talking about feelings really in concerns that happen in the future.
And for a person to be able to pick up on that and drive the conversation in a way
that meets the customer's needs and concerns is something that AI is just not there.
So I think it really boils down to that good quality human connection, which is
something we promote and encourage in our FNI managers to get involved in the
transaction early and a long term.
I mean, that's a that's a tall ask for AI to totally replace the FNI office.
So Dennis and Wade, you both talked about
kind of cultivating buyer interest and buyer acceptance.
And as it's an element of time, you've both inferred that it takes time to do that.
Here's the deal, though, Wade, customers don't want to spend that time.
They want as quick a process as possible.
And some sales managers agree and sales people often do agree.
How do you reconcile the consumer need for a faster process with a process
that inherently, as you say, takes time?
I think I think we use the word time far too often.
I think it's miscommunication of time.
It's the challenge. It's not the time itself.
And when you have a good customer interaction, where that investigation is
truly about them, their perception of time is not the same.
The problem with time is when I'm trying to sell
someone something that they don't need or they can't use or there's no benefit to
them, at that point, everything seems to take forever.
I think it's more about time spent correctly than it is time in general.
Dennis, do you agree or I agree with that 100 percent?
I mean, people want to deal with people they like.
And as long as we're training our people to make good use of the customer's time,
that's key. I was reviewing that F&I study that CDK put out the middle of September.
And we're seeing trust level be relatively flat with the F&I manager.
But what we're also seeing from that study is that consumers trust the sales person
more. And I think, and this is something we talked about yesterday on our morning
call and this morning on another one is involvement of the sales advisor into
that process earlier, because I think that does abbreviate the time spent,
not only in the waiting times, but also in the F&I office.
So I think we can get to faster transaction times and more quality
transaction if we're doing that and looking at it correctly.
Yeah.
So let's see,
Jonathan, give us your thoughts on the value that a good finance manager delivers
versus an AI tool or an online app.
What is the benefit of a good finance manager?
Well, I agree with Wade and Dennis that we can kind of pick up on if the customer
has interest, one thing that comes to my mind is just making it fit.
You know, if you got a call on 72 months and the customer kind of sees the value
in the product, but just kind of can't maybe fit it, maybe we can switch to 75
months and it's a little bit more elegant with a person there doing that.
I believe that everything that we offer, all the products that we offer have
inherent value, right?
So it's just it's my job to convey that.
And so when somebody doesn't make that purchase for like an extended warranty
or tire and will or whatever it may be,
it's not their fault.
It's it's my fault for not having conveyed it, right?
It's it's almost like I'm trying to almost think of it as like
some of these things will pay for themselves, right?
So in a sense, I'm giving away free money.
If I can't get across to somebody that, you know, this free money idea,
that's that's on me, right?
And it's almost impossible, I would think, for a consumer to read that.
Yeah.
So the Marion Kane, who we've had on the show, says AI can optimize a payment,
but humans maximize belief.
And Dave Thomas online says a hundred percent earlier in the process.
And thanks for the shout out to our study.
And he's right, Dennis, you mentioned the CDK study there as well.
So Dennis, luxury buyers expect transparency and trust if Amazon embeds
F and I into a one click transaction.
Do those customers still see value in the in person consultation or will they
prefer the convenience, even though they don't get as much time to make that
connection? You're in a luxury market.
Well, when I think of luxury, I think of,
you know, great communication, good experience, transparency.
And yeah, AI can deliver on those things from a from a transactional standpoint.
But, you know, one thing that we have,
we've we've started to adopt is some AI into some of our workflows that,
you know, across the different departments.
But, you know, we still have a lot of people when they call in, you know,
even though we're implementing AI, they want to talk to a to a human being.
And I think that's in luxury, you know, just looking at the spread of buyers,
I would say our demographic of buyer is a little bit older,
you know, older generations.
And I think there's a lot of truth to people that still want that human
interaction and going back to that CDK study, you know, there's still a demand
for paper, right? And that's not unique to the older generation, even,
you know, some of the younger generations are still on paper.
So I think this, you know, this premise of going digital and roping AI into
everything, I think people, especially on bigger purchases, like, man,
that feels cheap, right?
It feels cheap.
And I just don't think that's the way forward.
I think AI is more to supplement.
I like AI from a standpoint of following up with our missed opportunities in F&I
and putting the right message in front of the right customer at the right time
based on their service visit with us.
I think that's where the Amazon and these others,
that's what they should be focusing on with AI is following up on our missed
opportunities and interjecting a human on those when appropriate.
Up front, I'm not quite seeing it yet.
So this is an open question then to anybody.
So I think there's a lot of people out there that would love the one click
experience of an Amazon or an app.
Not as many as maybe the industry thought going into COVID.
I think COVID kind of proved that the human touch is still something people are
looking for. But if that's true, what's the takeaway for us
to make that experience a little more efficient so that,
you know, we survive the one click, the rush to one click.
So F&I survives the rush to one click.
Because I do think, Dennis, I disagree a little bit.
I think there are people out there that would rather just press the button.
And if they need to come back later on and buy the service contract,
they'll do it once they see the need.
But they'd wrap, but they would value the speed and the efficiency of a fast
process over that.
I think currently it's still a catered experience for all buyers, no matter what.
Your circumstances tend to change based off of the vehicle, circumstance,
lifestyle, choices, those things are never going to change in my perspective.
Because, hey,
one minute you're driving a $2,000
Corolla and the next minute you're driving a $100,000 Mercedes Benz.
So these things tend to change as people grow and
people need to know how to be protective, period.
I mean, that's what these products provide.
So it's interesting.
Yoga cars post and I tell us what you think about this.
Yoga cars makes an interesting point.
Yoga cars says once people get used to A.I.
recommendation and it is tailored to their needs, imagine a customer pulling out
their A.I. and scanning an F and I menu and A.I.
recommends products based on their needs like you train that A.I.
bought or that A.I. agent and then the A.I.
agent engages with either an agent on our side or with you and either accepts or
declines based on what their true needs are.
Is that a possibility, Wade?
Well, I think obviously anything's possible.
And we are utilizing A.I.
on a consistent basis to adjudicate claims to to better interactions with customers.
I mean, A.I. is not going away and we know it's going to be fundamental to what we do.
I would just say
a sterile history.
Yeah, yeah.
So talk to me about it.
Let's step away from Amazon.
Let's step away from the tech and the A.I.
piece. Let's talk about the heart of F and I.
So a customer comes in to buy a car.
It's a tangible vehicle.
It's something you can touch, see, feel, get excited about.
And they come in and finance has the challenging role of creating need and
awareness around an intangible product, right?
So it's the service contract.
It's the fear of loss.
It's the possibility of a failure and its protection.
And in a lot of cases, some consumers would say, hey,
I'm not going to buy that because I've had a bad experience in the past.
What are better ways for us today to set up that experience and cater to the customer
knowing their preference for speed and efficiency,
but still make that bridge that gap between the tangible purchase to the intangible purchase?
And that's open to any actually.
Trevor, give us your perspective on that.
I think that consumer education is required of us as professionals.
They need to recognize that the technologies advance so quickly.
And that, you know, four years ago, you know, we had we now have driving cars.
OK, so the reality is that they need to be educated so that they can make
decisions that will overall affect them for their life.
So, you know, six years of experience is a common purchase today.
And it would be
unlikely, I would say, even with the amount of recalls that we go through with all
vehicles today, that that you can't not give them the opportunity to understand
what they're buying. And once they recognize that, you actually get
that interaction that they understand.
I mean, it's an expense.
So OK.
All right, let's let's talk about the different F and I models that are out there.
What's evolving? What's working?
So right now we're seeing three dominant F and I models.
And Wade, you do training on this.
So maybe you've got an additional perspective about other models that are working.
There's the traditional, right?
Sales kind of hands off F and I prevent presents and contracts.
There's the one touch where the salespeople go start to finish and do
everything from the beginning to the end.
And then there's, you know, digital or minimalist.
You know, there's either not a finance manager and there's an app or it's just
completely online.
Each model solves a problem.
I would argue maybe that digital or minimalist one saves for time, but it creates others.
Starting with you, Wade, as an F and I product partner, what are you seeing?
Are dealers getting results with one of these hybrid approaches?
Something rather than kind of that non-traditional?
What do you see out there?
So we see a lot and, you know, there are companies like A to Z,
sync that, you know, they do the cradle to grave type stuff.
And which is who Amazon uses, by the way, right?
And it can be very successful, but there's still a ton of human interaction
when it comes to A to Z, sync.
It's more of just a one touch process.
Full digital, yes, we see it too.
And our take grade on full digital is not very high.
It's it's it's more challenging.
I would also say that I think we're all looking for ways to be able to get a
customer to be able to buy a car from their couch.
I know that it's been done with carbon and things like that.
But it's it's a challenge and state to state it's a challenge.
And there has to be wet ink on certain things.
And it just makes it really difficult.
So at the end of the day, I think at least in the short term,
there has to be some sort of person to person contact just to complete the whole
thing in order for it to be successful and profitable.
Yeah, you can you can send out a digital link or or you can have things set up
where they can see a whole, you know, suite of products.
But at the end of the day, I just the take rate just isn't there without
some human contact right now.
So you're in favor of traditional or a salesperson does it all, but not the
digital or the 100% online because of the the the acceptance rate and also
because of some of the paperwork requirements.
Dennis, you're in California.
You're pretty forward thinking which which model do you which models do you
advocate for or believe in?
You know, at the end of the day, we're trying to meet the customer where they
want to be. I know that's an overused term.
We have an online platform.
And if people want to go online A to Z and walk out, you know,
never set foot in the dealership, hey, we're going to support that.
But for us, what has worked is really a hybrid approach.
We really we talk with our sales professionals.
We talk about F and I products, how they work, make sure they have a nice
elevator pitch for the various products that are on the F and I menu.
And we introduce those with the initial proposal to the customer.
They're itemized on the document so the customer can see what they are,
how much they cost, and that's that's part of the initial proposal.
And, you know, we get some we get some good take rates right on the showroom
floor. And what that does is that really abbreviates the time in the F and I office.
And obviously, the F and I managers got to, you know, solidify those things,
make sure all the docs are signed.
But they have less to talk about in the F and I office.
We're not introducing a totally new concept, not that it's new, but with respect
to that individual transaction, it abbreviates the time, makes it more effective.
And, you know, we see great PVR.
We have we don't have CSI issues.
And, you know, at the end of the day, with a big book of business,
we have people that do get value out of those products.
And when they come back for their second, third, fourth and fifth car,
you know, we get, hey, I want that same setup I had last time.
So I think it's getting all everybody in the sales and finance department
row in the same direction.
And that hybrid approach seems to pay dividends for us here.
So, Dennis, in a couple of weeks, we're going to do a panel where we talk about one
price or negotiation free buying from a car dealership and then the traditional
negotiating and this will come up.
The salesperson going start to finish the A to Z process.
Would you implement a salesperson start to finish process at NELO?
Is that something you'd be open to?
No, we've actually we tried it and we did not have success with it.
We tried an A to Z.
We just overall profitability per transaction.
You know, I mean, think about it.
We don't have Tom Brady.
Well, Tom Brady ran a route, but it didn't go well, right?
We have specialists doing certain things and that's how we move the ball down the
down the field, but I'm definitely an advocate for getting our salespeople familiar
with it, right, because that not only helps us in the short term with the time and
all these different things, but it also prepares them for a future leadership role.
So I think, again, that hybrid approach is where it's at.
And we're really focused on that here.
Trevor, what role do sales consultants have in the finance process at your store?
So we have a lot of presenting going on through from the start to finish.
I do a two minute takeaway with my customers
as I get them, OK, but our salespeople are trained to hint, not sell.
I think that F and I today can get lost in the sale.
It's very important to present these things as not a sale.
It's a benefit that all of our customers need to be open to.
But the sales process in particular, our guys are all and gals are trained very
well to touch on them, but they're not over advocating either, OK?
Because then it gets caught up and it turns into a mess.
So yeah, we keep it simple.
I process, present the car, the desk presents the numbers, I present the benefits.
Jonathan, thoughts on that?
You know, we're the same way.
We we bring it up
maybe early on in the process, but the salespeople aren't out there trying
to sell the products that we offer.
I think Dennis made a really good point about, you know, it's a it's a team effort.
And some people are really good at certain things, not only that,
but just maintaining the compliance of what the actual products do.
I think that's a lot to put just on a salesperson to pitch that throughout the process.
OK, can I add one thing to that?
Please.
One of the things to and when we do train this at
GFS group is a consistent message from front to back.
Our greetings the same when we train salespeople.
Our greeting is the same when you go into F and I.
Our greeting is the same when you go on the service drive.
And so when a customer shows up at any of these pain points or what we would call
these fear points in a dealership where they're uneasy, you know, right when they
pull up and a salesperson steps off the curb or, oh, my goodness.
Now I got to go to the F and I officer.
Oh, no, it's my first service visit.
That consistent message is always there.
So if they're trained front to back, even if they don't do the presentation
of the F and I, as long as everybody has that same consistent message,
there is a there is a surety or an easiness with the customer when they go
from department to department.
So, Dennis, Wade makes a great point in our world with different models.
So you've got a little bit of the
redigital piece where people are coming in off your website.
You've got salespeople that feel more comfortable or less comfortable being involved.
You've got different touch points.
How consistent is the experience at your auto group from online into the store?
Are there any disconnects and what do we need to do to shore those up?
Because I think we all hear at some point or another, hey,
I've already said that to somebody or I've already done that step or the online
experience is disjointed to Wade's point or another part of the process is disjointed
because of a lack of a good process to connect them.
Yeah, again, I think that is all boils around training.
I know we talked recently about a CRM move we made here.
And one of the great things about AI is from online to in store.
If we're working with those tools to summarize everything that happened up
to that point when the salesperson goes in to the lead and the CRM using that tool,
reading the lead and making sure we're picking up where the customer left off.
All these online models and everybody that's starting to do it.
If we're not training our salespeople to read the lead, you know,
the worst thing that can happen with these digital retail leads is they go through,
they upload their license, their insurance, they fill up a credit app,
they build the deal and then we pick up the phone and get into like,
how can I help you?
Like, what do you mean?
How can you help me?
Just schedule appointments so I can pick this thing up, right?
You know, and I think that at the end of the day is is is key, right?
And picking it up right where it left off.
And I think that's where the human capital is, is holding people accountable
and monitoring the way the lead is handled.
So so Wade is Dennis, right?
That utilizing and implementing the right technology tools will help.
It seems to me it also reduces time and that's one of the consumers.
Biggest complaints is too much time and inefficiency.
Does that connect together?
100 percent.
OK. And are there any tools you recommend?
Then we'll come back to Dennis and ask what they're using.
We'll ask everybody.
Well, look, I think, you know, when it comes to CRM tools,
there's a bunch of good ones out there and I wouldn't want to promote one over the other.
And I think that a lot of that is preference and what a dealership is trying to get
accomplished, but they're absolutely necessary.
I think whatever the tool you decide to use,
whatever the design is, is keep them informed and don't make them wait.
You know, I think the biggest challenge with time is making people wait.
So whatever you can do to keep that waiting at the absolute minimum is the key.
Dennis, is there a tool in particular tech driven or AI driven that helps you
kind of connect those different data points together so you're not asking
customers the same question?
I mean, currently we have everything native and drive centric,
which works for us, but I'm with I'm with Wade on that.
You know, it's whatever tool works for you.
Obviously, every dealer's got, you know, expense targets to meet.
You definitely got to use the tool.
But the point is, is, you know, making sure that we're training our salespeople
to work with these tools and use them to their full advantage and really looking
at your process end to end.
And, you know, sometimes you got to rearrange the furniture in the house
to dance with these things to get the most out of it.
But, you know, it takes time, deliberate.
And then once you come up with that,
you know, you just got to coach and train around it.
Trevor and Jonathan, open question.
Is there any technology tool or or a platform that you use to help connect dots
so that the customers can avoid some of the wait time?
Yes, we're actively engaging in all
spectrums of artificial intelligence and we've made some CRM changes as well.
It's it's the fine tuning, right?
That's I think that's with any part of our industry, the fine tune.
And we we all every year it's a new, new, new challenge.
So but we we have we partnered with several different companies.
We aren't, you know, it's funny, we aren't using a ton of technology.
But what we really try and do is hone in on our different banks programs,
because that's probably a lot of the a lot of the wait time is trying to maybe
find the right
maybe the right lender that'll
get you the right approval for for the deal that you're working.
And I think that, frankly, people and I think people really value transparency
a lot more than just saving time, right?
And yeah, of course, we want it to be quick.
But that's one difference that we can make, I feel like, is we can convey that
transparency a little bit better than an AI chat might be able to and and make
the process more enjoyable, right?
If people are happy and they're in a positive frame of mind, they're going to
they're going to think better, right?
They're going to be a little bit more open to logic and reason.
All right, so let's talk about one unique challenge to the finance department.
In many finance departments, there's a manager after the name title.
But in reality, it's a manager without a lot of authority.
You don't hire fire, you don't sign paychecks,
you don't run meetings unless you're asked to come in and do that.
When you talk about participation in
updating notes and making sure that data and information is being used in tools
and processes, you don't have that ultimate say.
So how do you stay relevant as a finance manager in helping to create the best
customer experience when your title doesn't enable you to make those changes ultimately?
Get really good at bugging the right people.
John, bugging the right people.
All right, Trevor, Trevor, what do you say?
Yeah, come at me right on show, Jimmy.
So that being said, you know,
one, our role as F&I professionals is not just to hang out in some office and wait
for things to happen.
Early management intervention, getting out there, visiting with the customers.
You know, those things are going to remain relevant.
And one, it puts the customer at ease.
It's extremely important that that we people don't like buying cars.
I mean, they do, but they don't.
We need to make it a smooth process for them that is
pleasurable because they're going to own this for the time.
And that being said, you know, it is about being engaged with all all members
of the staff, so front to back.
What Wade, F&I is a leadership position without title.
How the heck does that work to deliver your best product?
So look, if you know, leadership, if you look at it from a servant's
leadership perspective is what does an F&I manager really do in a dealership?
I think what we have to realize is at the end of the day, we're there to really
do one thing and that's sell more cars.
We don't sell enough cars.
We don't have F&I turns.
There's no F&I profit or anything.
So are we doing the absolute most to ensure that these dealerships are selling
the most cars and that means now not sitting back in an F&I office,
being involved with the sales team, being involved with sales meetings,
being involved at the desk, making sure that when we're working deals that we're
all on the same page and that we're not, you know, because we're on the wrong car
or the payments way out of whack or whatever the case might be.
But are we involved at a very high level?
So there's a lot of, I don't know if you want to use the word
transparency, but there's a whole lot of visibility of the F&I team on a consistent basis.
Yeah, Dennis.
Yeah, I think you're spot on with your assessment and, you know, kind of piggyback
in on what all three of you have said is, you know, you got to lead by example.
At the end of the day, I think a lot of F&I managers forget one very important thing.
You're still a salesperson.
So with that in mind, it's up to F&I managers to help facilitate the sale,
make the deal and that's being involved.
And I think a big part of that is having a great attitude when you're working
with your salespeople and helping them get to the next step, get on to the next
customer so they can make more money for them and their families.
But, you know, knowing lenders, super important.
You know, I know early in my career, I think what helped me grow was really
knowing all the lender programs, knowing where to place loans and make that
incremental deal, you know, over the course of the month.
So our guys and gals got paid.
And I think that's how you lead.
You lead by example and you help the store and your salespeople make more deals.
And, you know, at the end of the day, that's ultimately what elevated me and my
career, at least that's my feeling anyway.
So Dennis, how do you hire for that?
Because that leadership without authority, being able to pull someone into the
vision that is FNI, being able to be up to date on all the lenders,
products and not be the type of person that throws that cash deal back in a
customer's face or in a salesperson's face that is a positive force for good to
Wade's point about selling more cars.
It's not easy to find that person.
It's a unicorn of sorts, right?
Well, it certainly is a unicorn.
And I think it starts with, you know,
taught when in the interview process and, you know, you're you're going to bring
someone on, hey, are they comfortable doing the same thing?
I'm asking my salesperson.
Hey, could you go out and do a walk around video for a salesperson?
Could you, you know, handle follow up on a lead?
You know, are they the type of person that's going to
care about the little things, which isn't little contracts and transit?
Can you leave your office with no voicemails before you go home for the day?
And just setting that expectation.
And I want to see our finance managers,
our finance managers live out of our CRM.
There's no reason for them.
So then I can assess overall engagement.
And I think those are the standards that need to be set out of the gate.
We do a lot of hiring internally here at the Nelo Company for finance.
And they got that good baseline of what it looks like to be a good salesperson
within the Nelo Company, and they know the expectation when they move forward.
But finding it tough, but asking the right questions and setting the expectation
and holding accountable, that's where the rubber meets the road.
So Wade, in your F and I role, you do a lot of hiring for dealerships.
Any other advice you'd give to dealer
principals looking today that are saying, hey, you know what?
I see that called a leadership in finance.
My team doesn't necessarily reflect that.
How do I find that team that will do that?
Well, first and foremost, stop looking for mercenaries.
You know, those guys are out there and they're out to make a paycheck
and look for guys that have a background in some sort of team oriented environment
and have they sold cars and did they sell cars for a significant amount of time?
I think it's paramount in our industry that these F and I people go through the
sales floor and understand what it's like to be out on the lot when it's a
105 degrees or 25 degrees in that flight, because our customer ultimately is not
only that person buying the car, but it's that salesperson.
It's that sales manager that's out there grinding every day.
And do we find people that recognize how critically important that is?
Yeah.
So
F and I at its heart, it's important to find the right people.
And that's a great that's great feedback.
I would actually ask Trevor and Jonathan, are you both that type of producer?
Like, where do you see you fit into that kind of standard or mold?
Trevor, I do it every day.
I'm going to put you on this part.
You're asking, I am definitely engaged with the team regularly.
That being said, you know, like any business manager, you get caught up in the
office and you have other responsibilities that you do tend to take care of.
But that does not alleviate me from getting up and getting out there and being
engaged with our team.
And I pride myself on that a little bit.
Candidly, finance is probably one of the toughest jobs in the dealership because
of that reason. Without the title, you can't hire fire.
It's tough to maintain process.
I think ultimately it's one of the best entry points for someone wanting to become
a GM or even higher because you learn to look around the dealership and see how
things work and you learn to drive by example and by casting a vision and
bringing people into that vision rather than running around and threatening a lot.
Right. And if you threaten a lot without that authority, you don't last terribly long.
Right. Dennis, thoughts?
No, you know, here's what I would say.
On average, I would say the average F and I manager, let's just say they do 50
transactions a month, right? That is, let's call it maybe two deals a day.
I think all in two deals a day takes, let's be generous here, a total of four hours.
What are you doing with the other?
I know we all don't work eight hours.
What are you doing with the other six, eight hours a day?
Right. That is what we talk about.
So if you're an F and I manager and you're listening to this, if you're at work,
work, you know, make sure you're part of the part of the moving the train forward.
I think that's important.
Well, where we are, we have something of a smaller staff.
And so everybody kind of in a way has to wear multiple hats.
Right. We've got we've got a general sales manager.
We have a sales manager.
We have myself, a finance manager and Kayla, our other finance manager, which she's
really absolutely a superstar.
She should probably be sitting here talking to you guys.
She's working deals.
She's, you know, helping participate in training.
I try and go around about every single day.
I've got a list of any prospects that we've had logged into the CRM over the last
30 days. And if there's somebody that hasn't been spoken to in three days, you know,
it's just a conversation about, hey, what can we do to kind of maybe
get this, you know, client back on track?
Sometimes I'm desk and deals.
It's a true rarity, but sometimes I'll appraise a car.
So it's everybody moving in the same direction.
Like, like Wade said, it's everybody's there to sell cars.
That's your number one job.
All right, I'm going to go around Robin here a little bit.
And I'm going to say I'm going to ask you, obviously, hiring the right people
in finance and stores today is crucial.
What's one skill gap that most people coming into finance have or don'ts?
Or what's what's one skill gap that prevents a person from becoming
a great finance manager as opposed to a good?
Overselling, overselling.
OK, why? What does that mean?
Well, it's different because when you're when you're a salesperson,
you're into the immediate moment where with the F and I department,
it's about the benefit, the security that you achieve.
And it's untangible like you've brought up earlier.
So you can't you can't touch it.
You can't feel it. You can't do any of that.
So there is no excitement about that at all.
Other than, hey, I just spent a little bit more money.
My payment went up a little bit more, etc.
So it's not a sales role.
It is a sales role, but it is not a sales role.
Maybe these guys think differently, but that would be mine.
Biggest skill skill gap.
Duane, I think it's questioning skills,
effective questioning skills to get information quickly out on the sales floor.
You've got like he said, you've got this tangible item in front of you.
And you're trying to make that widget meet that person's needs.
And they've pretty much told you a lot of what that is already going in.
When they get in the F and I office,
do I have the ability to ask the questions to get this customer down the path
that we all need them to get now?
And so I really think that's the biggest skill gap is quality questioning skills
in the F and I office.
OK, before we go to you, Dennis, I just want to bring up a couple of comments.
Igor Kay says, before I became a dealer principle,
I worked on all the positions in the front.
But my longest placement was in F and I for 12 years.
You're right.
Mastering F and I is one of the most important position at the store.
Cookie God says, that's my T dog.
Darius Rogers Brown says, time kills dills.
Nick Blaine, that's my bro.
Tully Williams says, we are in the repeat and referral business.
Dennis, true story.
And what's the biggest skill gap you see?
The big. Well, it is a true story.
We drive that for Tully.
Just I want the record to reflect that.
But yeah, I'm going to double up on what Wade said.
But aside from that is effective use of all the means of communication with
people reliant on email and text and just want to live in this digital,
not pick up the phone world that we've kind ofverted to.
I would say that are you good on the phone?
Are you willing to pick up the phone?
Call your funding analyst, call your lender, call your customer,
call your business office, phones.
Let's make phones great again.
Interesting.
And how do you test for that in the interview process, Dennis,
to a deal principle, wanting to find somebody who's good at phones?
I don't know.
I'm going to I'm going to think of something over a frosty adult beverage
and get back to everybody.
Colin Kubic says it.
Let's use Dar program is a pretty good example of how to build F and I department
from within fast track to success.
I actually believe that.
I think great finance departments can be built if you have a larger
organization by by asking handraisers on the sales floor in the service department
to join a group and mentor them over a six month period.
Meet with them, teach them, have them work together with your finance company.
Anyone else have something internally where you're developing finance managers
from existing talent and helping them career path that way?
Yeah, we have we have regular meetings every every other month.
We fell off that a little bit, but we invite our salespeople,
those that want to are aspiring to get into F and I right in this room around the corner.
We bring them in here and we just put them in situations where they can become
familiar with everything and our most recent promotion for Nanda.
She's a Volkswagen and she's having a great time in F and I and she was a great sales
person, both in units volume, but over F and I was really good.
So yeah, so the class the class worked so well, Dennis, you stop doing it.
Yeah, that's that's like it's like when we put a clear bra on a car on the showroom
floor and we sell it every time, but we never do it again.
That's yeah, yeah, yeah.
Wade.
I think it goes back to what I was talking about earlier when it comes to speaking
the same language, you know, we have district sales managers and what we do.
And we make sure they're very engaged on the sales floor with salespeople,
with the other people inside the dealership, because we have a responsibility
to find talent and get that talent into those F and I offices.
And you will best find that talent on the sales floor.
That's the most loyal.
They want to be there.
They want to grow.
And then once they get into F and I to compliment some of the things that have
been said, that's where they learn the most.
They'll get they'll get a glimpse into everything in that dealership from sales
management to the back end, dealing with the service manager, dealing with a
service advisor, what's it like doing with the back office?
And then you can truly develop people long term and build your organization.
So yes, I think it's critical that everybody be involved on that.
So what's the step?
What's the first step to creating that?
First step to creating is train them.
Make sure they don't leave.
Make sure that they have the equipment to stay at a dealership more than 90 days.
The majority of people leave dealerships because they felt like they were untrained.
And so I think the key is when they first get there, great onboarding,
make sure that you spend plenty of time with them, give them all the resources
and access to information, not the donut roadmap and a video.
And make sure they truly are.
OK, so in just a minute, I'm going to ask everybody in this group one question.
We've talked a lot about training, so I'm going to ask,
who are the training companies you work with in the F&I department?
And I'm also going to talk a little bit about AI as a path to F&I training.
But before we do that, let's talk appraisal pro.
We'll come back in just a minute.
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Or if you're listening to this after the fact, you can go to the show notes,
click there, props to appraisal pro for supporting today's content in this awesome
round table.
So we've talked a lot about training today,
knowing the different things to say and how to engage and interact with a customer.
It's a separator between great and average finance departments.
Who do you guys work with, Dennis, at the Nilo group?
Who's the training company?
Do you have an F&I training company or do you do it on your own?
We do not have a training company.
It comes down to me and we really lean on our F&I team.
We have guys and gals that have been top producers here for a long time.
They do the whole job, CIT, compliance, good numbers, consistently.
And that way I can keep the Nilo company's culture, what it is.
And I know they're getting trained in the Nilo way.
And it just builds relationships across the group.
So we lean into our top performers and put them on the stage.
Trevor.
We work with several different institutions.
We're currently working with a university,
but we do a lot of internal training as well.
So, you know, we have a company that is versant group that's also a site
site affiliation as well.
So, Jonathan.
We just do a lot of self study on this sales side.
We do use Tim Kintz, but myself and Kayla, it's a lot of sales.
Can I give a quick shot?
It's my brother, by the way.
It's just for your first day today.
Of course you can, yeah.
And Wade, I would ask who your trainer is, but if it's not you, that's a problem.
So I'm not going to ask that.
Shameless plug.
Shameless plug.
GFS group has a training team of north of 10 people and we do everything.
I mean, we do sales, F and I, fixed tops.
Wait, what do you say to the person who's
a finance manager who's been a vet for a long time?
They're like, get out of here.
I don't need to be trained.
I'm great.
I've done this for 20 years.
I know what's going on.
Like, I don't need training.
I've done this for a long time.
Wait, well, I mean, there's a there's a numerous things you can say to that guy.
But at the end of the day, it's it's having a conversation about what he knows
now versus what he knew before.
You know, what does what does your knowledge do for you today that you've
applied through all these years and show me what that looks like?
And then having that specific conversation and that question asking
and like I said, when you're talking about questioning skills,
what do you ask a customer when they walk into the F and I office?
Describe for me what that looks like.
Tell me more about that.
You'll find out really quickly if that old dog has really come a long way and is
doing things the way that they would be expected now, or if he's just trying to do
the same old stuff that he did 20 years ago.
It's really not all that effective.
So wait, Ben in the comments made the comment.
He said the best, honestly, the best AI usage for F F and I is training.
And I don't know if he means by that AI training, like a tool to engage with training.
What role do you see with AI with training?
Well, look, I think, you know, AI is pretty fascinating to all of us.
And I would say that you use AI, let it let it be the guide for certain things that we do.
Ask it questions, see what it thinks, ask it, statistical questions, what's working,
what's not working.
And as AI continues to develop, I think we'll find out more and more that it will
be a fantastic aid for us when it comes to training and development in a resource
to work alongside with.
Yeah.
So, Dennis, let's transition a little bit to legislation and things that concern us.
Your governor, Governor Gavin Newsom, signed the California Combating Auto Retail
Scams Act. And if that sounds familiar, it's because it is.
That was a federal attempted law that they were attempting to pass that ended up
getting overturned.
Are you ripping people off in California?
Does the government need to come in and prevent that from happening?
Well, I would, I would, it would depend on who you ask, but I would say no.
California has already got some rules and regulations in place.
I think this is just enhancing some of the stuff that is in this new legislation.
We're already doing.
We already give our customers seven to a 700 mile to return the car.
We don't we don't charge for that.
California already has a pre-contract disclosure where everything is itemized.
The name of the product, how much it costs, the payment with and without it.
That's already there.
I think from my perspective, you know, that pre-contract disclosure statement,
you know, if my name were on a building, regardless of a state, that would be something
that I would look to implement because I think it adds a huge layer of responsibility.
What we're most concerned on here here at the NELO company is really about the
communication between our salespeople and the customer, because we were talking
about this at a high level.
Obviously, now that it's going to be real, we're going to dip into the weeds,
but we've got to put all the numbers of the transaction in every single communication
was our interpretation, and that's going to be a heavy lift.
I mean, we're going to have to really be leaning into our technology partners.
How do we do that?
Because that's not something that I can leave in a person's hands.
I could, I don't think I'll be as successful.
So making sure that's hard coded and how do we do that?
But, you know, I get the spirit of the law.
I just think we got some questions on how we're going to do it.
But we already have caps on our F and I products.
We don't sell products that we don't think our customers can get value
out of. So overall, I think we're going to be fine.
I'm just worried about that communication piece on a go forward.
So you and I have talked about this before.
So does increased oversight and transparency lessen your profits per
transaction, or do you find or does it help enhance it?
This is you have an interesting perspective, I think on that.
Hey, listen, if we're not transparent, we're not selling anything.
We're swindling.
Right. And that's what I would say to everybody, customer, people in the industry.
I don't mind that the transparency, I think it's good.
We have been operating that way since before I moved to California back in
08 with this level of disclosure, I'm not worried about that piece.
We were effective month in, month out.
It's not an issue.
And I think we hear a lot of times, man, how do you do business in California?
Well, this is our environment.
We just, we just do it.
And I think when you lead with transparency, you look at all these studies,
what do customers want?
Transparency, just give it to them and build value and stick to the basics.
And we're all going to be fine.
So what message would you give to those bad actors out there?
If there are any that are still doing it the old way where it's trying to hide,
it's trying to cover up, like it gives everyone a bad name.
And ultimately, this industry is served by greater transparency.
Now, honestly, I just hope they're, you know, they get caught in their punish,
to be honest, because it is I mean, I really feel that way.
It's like it's not salesmanship, right?
And you can be a great sales person, be transparent, be compliant and make a really
good living. So when you lay your head on the pillow at night,
you feel good about what you do, right?
And the better we do at that, the more repeat and referral business we can earn.
So the guys and gals in and around me here in Sacramento that, you know,
I think they all do a good job.
But if you're not taking care of your customer, we're happy to do it for you.
Wade, any message to bad actors that are seeking to conceal, hide,
play a game for the sake of profits rather than serving the customer transparently?
Look, long term, there's no winning in it.
And that's the reason I said, stay away from the mercenaries.
You know, train, develop, make sure people know what they're doing,
have honest discussions with customers.
This isn't all that hard.
And if you're good at what you do and you have a sound process,
the transparency piece is very simple and people will still find value in these
F&I products, they will still purchase them.
So it's just really not the, it's just not all that complicated.
It's not.
Yeah.
All right. This question is not only for this panel here, but also for our
audience, they can post to the comments and we'll bring them in.
What's we all have, you know, those of you and us that are in finance or have been
in the F&I world, we go to restaurants, we talk to friends, we talk to people out
there, everybody has an interesting, there are myths all over the place about F&I.
What's one F&I myth that needs to die?
That most people misunderstand about F&I or misstate or mistake about F&I?
I don't need, I don't need an extended warning.
Yeah. Yeah.
And that's a great objection as well.
Right. So yeah.
I mean, you know, first of all, their service contracts or service agreements.
But, you know, that's, that's the one thing.
And the challenge being that we don't have, again, the right questions and the right
discussions with these customers regarding that specific thing.
You know, are we discussing what the cost of an RO is?
Are we discussing that that dealerships have have almost double their labor rates
in the last five years and parts are two and a half times that.
So do they have a real clear understanding of what a catastrophic breakdown really looks
like? And I think that's the biggest misnomer is that we are that we're here to
to just make money that we're not here to provide products that actually do help a customer.
Yeah. Yeah. Very good answer.
Next.
It's it's the difference between a good charge back and a bad charge back.
Right. So, you know, we want, we want the good ones, which are, you know,
hey, we traded somebody out of a vehicle.
You know, we're doing everything the right way.
Transparency is very simple today.
I don't think I don't think it's
you know, what average repairs somewhere around twenty eight hundred dollars, twenty
five hundred dollars, something like that.
It's people want this stuff.
It's just the way that you present it.
So yeah, so the myth being lack of transparency.
We are transparent.
We need to be more transparent in order to get more adherence.
Jonathan, that's the myth is that people think there isn't value in what we're
selling. They think it's something they're never going to use.
It's just going to be a waste of money.
I think that's the biggest myth.
And yeah, transparency is just so important.
I don't see why places wouldn't be transparent.
Not only that, I think that's why you lose some customers to some of these online
guys is because they are able to sit there and read through it as they want.
And they don't they don't have that feeling that somebody is trying to
to swindle them or talk them into something.
So I think that's the biggest.
Dennis, anything to add?
No, I mean, just, you know, overall value, transparency and
biggest myth is just that, you know, we do want you to get value out of what you
bought, you know, I mean, that's what it that's what it boils down to.
And, you know, and then everything that you're that you have to buy here,
at least in the NELO company, you don't have to buy it.
It's all optional, says it on every piece of paper we sign.
And I think that's the way they need to be presented.
What's one thing, Dennis, you wish every GM understood in the business
that maybe they misunderstand or they don't get fully that.
Man, that's a really good question.
I just I just think, you know, we touched on this a little bit in this segment
today and really what an important role your F and I department is it literally
touches every single department in the entire dealership.
And I think, you know, if I had to wave a magic wand, I would really want to lean
into our general managers and, you know, all general managers.
You know, are you looking at your deals?
Are you auditing auditing them with regularity?
Because, you know, that's going to help you clean up any transparency or
compliance issues, right?
Are we making sure the things that we have sold, they're all disclosed,
they're all proper and then just make sure that when, you know,
customers are going to use that product that everybody in the dealership,
not just in sales and finance, but to the back of the house with service and parts,
not only understand how they work because I think that's huge, but where do they
call and how do they process these claims so the customer has a really good
experience and actually gets value out of the stuff we sold them?
Yep. Very good.
All right.
Anything you'd add, Wade, to that, GM?
I would add this, just one thing.
In that F&I office, that we are here to help you sell cars.
We're not here to cut your front.
We're not here to make sure you don't make as much money.
We only win when you sell cars.
So we want you to sell more and we want to help you do it.
All right, we've talked a little bit about the different models as we wrap up here.
But just as kind of a rapid fire around, if you have to put on your future glasses,
we always get this wrong in automotive.
If you had to look 10, 20 years down the road, what does F&I look like?
10, 20 years down the road, does it have a similar role?
Is it more automated? Is it more AI driven?
What does F&I look like in, let's say, actually, let's keep it five years,
20, 30, let's go five years down the road.
I'm going to say there'll be less F&I managers, which will make the remaining
good ones doing more transactions as AI will speed that up and a lot more
post-sale follow up on missed opportunities.
I think that's what it looks like in five years from now.
And so what would your message be to a finance manager or a dealer principal
wanting to be part of the less today?
How do I prepare for that?
Make sure your key players are trained up and doing the right things.
And keeping an eye on the business and its totality to understand the overall
impact of an effective F&I manager.
Yeah. And one thing we didn't even talk about, and we'll get to everybody else,
is fraud theft, right?
It's a finance manager's responsibility to help prevent against that.
And that's a whole arena or area of responsibility, Dennis.
What's your message to the finance manager of past that might say, hey,
I'm going to sign this deal up and hope it sticks.
You can't. Can you do that still today?
You won't work here if you turn a blind eye.
I will say that to you, but you know, we're here.
Well, yeah, right?
We've got some technology in place.
We don't let deals leave the office without a full identity check.
You know, we're not just using the typical tools that we're all in route.
Who do you use? Who do you use?
We partnered with our friends at
Recover and Kedelsky that does a liveness scan with the ID.
It uses a lot of the same.
It uses the same technology.
We're all seeing when we walk through the airport and literally two days ago,
we stopped one heading out of town from just by implementing a simple process.
And I know when we get defrauded out of a car, it is, I mean, money.
It is just such a massive time suck, you know, dealing with law enforcement.
The customer that was victimized.
Like if you're not doing that, if you take anything away from this session,
if you don't have something like that, put it in your process.
Very good. Jonathan.
What you got five years from now?
What does it look like? What does your job look like?
Gosh, maybe maybe you see a lot more people scanning the menu, like you said,
and saying, hey, what what works best for me?
You know, maybe maybe you see a little bit more.
Hey, this finance office gets so many reviews and they're this many stars, right?
Maybe you get a little bit more public discourse about the quality of
finance departments out there.
Trevor.
I think we're at a place where we're going back to the
the the sales floor slash F and I, I mean, I think it could be a single
individual role and that, you know, it's
being in it for a long time, you know, the way that AI is evolving and,
you know, information is more available and budgets and things like that.
They're just it's I that's how I see it.
It's going to be one you're going to have your salesperson do a start to finish.
OK, so so you're you're seeing a transition from the current model over to another.
Yeah, Wade.
Look, I'd say let's let's kind of, you know, compartmentalize COVID.
But go back five years and what did five years ago look like and what is in what
does now look like? And I think you can kind of do the same types of things.
Yes, AI is a real thing.
So what we need to do is the same thing we've done and that is take our technology,
AI, whatever it might be, and leverage it to make us better in any way possible.
Does that mean fewer people?
It might.
It's hard to say.
I haven't seen in what we do in dealing with hundreds of dealerships across the
country that there's been this huge reduction in personnel.
I don't know that that'll be the case.
But are we taking all of the tools that we have in leveraging them so that we can
be the most successful?
So I think that's what you'll see the most of as we move forward is taking these
tools and leveraging them for success.
Do you think what Trevor says is right?
We go to one touch and it stops being a separate finance manager?
Or do you think the current model holds as
people get better trained and better efficient with AI?
Look, there I think it's going to be dealership to dealership specific.
They've been doing some stores have been doing, you know,
I'll use the Walzer group up north in Minnesota.
They've been doing one price since the 90s and done it successfully.
And then there's some that have tried it and got off of it and done a disease sink
and one person and all that.
I think there might be some more of it.
But I think for all intents and purposes,
more of the traditional what we're used to will will hold
Pat with just more leverage of technology.
Yeah, Igor Kay says as a dealer principle, I can say most owners care
care about one compliance, two contracts in transit.
True story, three titles do money do for faster inventory turn to free up for playing money.
I think there's some truth to that.
Lauren Klein says there's a reason they call it the box.
Every deals a match and someone's walking out a winner.
And Ryan Feller says no, no, no way to sell one.
No better way to sell than when you use the product yourself, which I
Dennis thoughts on that using the product on your own.
Yeah, I mean, I have more than enough cars and all of them have some level
of protection product on it.
I've used them personally, so I definitely agree with that.
But going back to Igor's comment, which I love, those are key,
key, key things that every dealer principle is very concerned about.
And honestly, I think, you know, when it comes to AIs integration,
I think that's where we get a lot of value out of that speeding up the
transaction type from those things for not only time, but just getting more
accurate, consistent documentation so we can get those things turning much quicker.
I think, you know, that's probably where this thing will start.
And I like Ben Hadley's comment, AI for training.
I had an opportunity in St. Louis to spar with an AI agent over a phone call.
That's I think that's already in the market.
And I think that's a great, a great use for AI to help us all get better.
So our company, we work with GF, GFS is a great company.
At my auto group, we work with a company called Brown and Brown.
I actually had them on here once.
They've got an AI training tool and I was super skeptical of it at first.
I said, there's get out of here.
There's no way that's going to work.
And we actually put it in front of some
finance managers that were sales people wanting to become finance and it grades
them after it rates them on their ability to deliver a word track and talk about a
product in a very unscripted way.
It's actually kind of cool how it does it.
And I was pleasantly surprised and we've kind of rolled it out and allowed others
to play with it. I think that will grow.
The interesting question is, is does AI learn by sparring with finance managers
and going through that?
And then and then is it able to do it more online?
I don't think so.
I don't think it ends up being able to.
Dennis, Sean Hopper says, Dennis, who won?
You are the AI agent.
I am selfishly, I think I won.
It started crying in front of a large group.
It was bad and the whole system malfunctioned.
So I'm going to say I did.
You sabotaged it.
Well, well, hey, on that special thanks to everybody.
My thanks to Dennis, Trevor, Jonathan, Wade for sharing your expertise and perspectives
today. It's been an entertaining and fascinating conversation about all things
F and I, current state, future state and everyone watching.
Keep asking the tough questions about this industry.
One big takeaway for me today is we become excellent in automotive and in
finance by better training, by better transparency, by better connecting with the customer.
And that's an obligation we all have as we sit in whatever chair we sit in.
And actually, I think the better we do that, many of you have said this,
the more future proof this industry continues to become.
If we do it terribly,
you know, there'll be no difference between us and anything online or anything
or anything anywhere else, but let's use those tools to become better.
The future of F and I will belong to those who adapt fastest and lead with purpose.
So thank you all for being on and to our daily dealer live audience.
Thank you for watching where we break down the biggest moves in the car business
as they happen. Don't forget we're live here every Monday, Wednesday and Friday.
So if this is your world, hit subscribe, turn on those notifications so you never,
ever, ever miss a beat.
And everybody from this F and I panel to you, we'll see you next episode.
Thanks, everybody.
Thank you.
About this episode
A lively roundtable discussion on the evolving landscape of Finance and Insurance (F&I) in automotive retail, featuring industry experts who share insights on the impact of technology, consumer expectations, and new legislation like California's Combating Auto Retail Scams Act. The panel debates the relevance of traditional F&I roles versus the rise of digital solutions and AI, emphasizing the importance of human interaction in building trust and transparency with customers. They also explore the challenges of identity theft in auto lending and the necessity for effective training and communication within dealerships.
Original notes
Today's show features:
Jonathan Blain, F&I Manager at Goldy Auto
Trevor Caulfield, F&I Manager at Pine Belt Chevrolet
Dennis Gingrich, Sales & Finance Director at The Niello Company
Wade Higgins, Regional Sales Director at GSFS Group
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