F-I - Modernizing in 2023. What will F-I look like in the coming years?

December 16, 2022 at 02:28 AM EST

Finance and Insurance trends for 2023 and beyond: Automotive Dealership Institute, leading F&I Manager Training school in U.S.A

Los Angeles, California Dec 15, 2022 (Issuewire.com) - Automotive Dealership Institute latest study illustrates a growing vehicle transaction prices during the past 12 months, with a near 6% growth in 2022, but the trends for F&I industry are showing noticeable changes.

There is no expectation that there will be any reduction in auto pricing, despite the fact car affordability is a growing concern, prices are increasing, and rising interest rates are somewhat effecting affordability. F&I product options and pricing continue to grow.

In addition to Automotive Dealership Institute, other industry analysts are being bullish about F&I revenue increase as they believe this has to do with customer demand. Budget-conscious customers are willing to buy extended-service contracts to protect against future expenses, as cost of service and maintenance continue to climb, leading to more consumers seeking out those F&I products for warranty protection and overall protection of their investment.

According to Justin McCulloch, Vice President of Career Services at Automotive Dealership Institute, dealerships and auto sales professionals see F&I as the key to the future of their profession, in both earnings and future growth. For the six most prominent publicly traded new-car dealer groups, the average F&I revenue per vehicle in the third quarter of 2022 was $2,336, up 8.8% vs. a year ago. That's also an increase of 45.4% vs. third-quarter 2019.

The roles and responsibilities of F&I managers are evolving at an increasingly rapid rate and influencing the future trends within the automotive industry.

Driven by technology, legislation, regulatory scrutiny and changing customer expectations, both the F&I process and the measures of success are materially different today than was the case even a few years ago.

F&I managers are challenged not only to stay on top of the changing trends, but to harness them to produce superior performance.

Modernizing an F&I department with freshly training F&I managers will be a key strategy in 2023.

Selling F&I online or offering virtual F&I and implementing modern retail strategies to stay on pace with evolving industry trends and consumer needs will be the main focus of dealerships in 2023 and even beyond.

Customers want the conveniences offered by digital shopping for cars, but they also want a person involved when they start talking about financing and selecting warranty products, and loan options, and more help with the more complicated aspects of car purchasing. Trends are rapidly changing with customer demands for more convenience and more remote options for shopping and choosing.

To thrive in a rapidly changing environment, F&I managers need to understand the drivers of change, and how they translate into the changing trends. Customer-focused F&I is now essential to the success of dealerships, more than ever.

Future F&I managers must seize every growth opportunity and lead the market by seamlessly facilitating of F&I transactions with both pre-marketing and virtual F&I to create a customer expectation before they even enter the showroom. F&I manager need to utilize the robust data on the latest trends regarding cost of service and maintenance and ownership cost to help customers make better decision with supporting data.

By adhering to the needs and concerns of customers, a dealership can create a good-performing F&I department and through well training F&I Manager, they can expect to see improvements, and material positive changes in both the top and bottom lines, as well as in customer satisfaction and compliance. Advance training is key to achieve this.

Professional F&I training courses, like the ones offered by Automotive Dealership Institute, teach F&I manager to take the opportunity to learn about customers' lifestyles and driving habits. Then, highlight F&I products that are most relevant to them, be it suggesting Gap Insurance, or recommending Tire and Wheel Protection.

Future trends will continue to suggest integration and better communication, including through digital means, however the training still remain the #1 important factor to utilize all the opportunities within the changing trends and changing customer habits.

Automotive Dealership Institute provides Auto Finance and Insurance Management training program and has been teaching students the necessary skills to become a successful automotive F&I manager, Internet sales manager, desk/sales manager, or dealer representative - with over 33 years of experience and an impeccable reputation training the best, with a 90% job placement success rate within 90 days of graduation.

For additional information regarding F&I Manager Training, or Career Services at the Automotive Dealership Institute, or Veterans program and/or schedules, please contact us on 1 (800) 998-7200 and ask for Justin McCulloch, or visit our website to contact us online.

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