Dealerships now demand more from F&I Managers in 2024

From even more managerial tasks, to helping with sales while keeping up with regulations compliance, general managers at dealerships across the country now demand more from F&I Managers in 2024.

The Federal Trade Commission is now looking at F&I more closely than ever before. Just recently they demanded auto finance-and-insurance documents going back to 2018 at Leader Automotive Group and back to 2019 at Liberty Auto City. Many states, like New York, are coming up with even more stringent F&I regulations compliance.

Add to that, the Federal Reserve continuing to increase interest rates, those days that you could get a 2%-3% auto loans are far behind us. And then there is worsening credit rating which makes the job of F&I managers at the dealerships even more difficult when it comes to finding an affordable loan for car buyers.

Currently, the average balance for unsecured personal loans, or loans taken without collateral such as for a car or home. Americans with a personal loan (excluding car loans and equity loans or home mortgages) have an average balance of $11,131.

An F&I (Finance and Insurance) Manager is a key position in a car dealership. The primary role of an F&I Manager is to assist customers in obtaining financing and insurance for their vehicle purchases, but in reality it is a profit center for dealerships that brings in revenue by selling F&I products. Not only is it getting harder for them to do their normal duties, the increasing interest rates and the skyrocketing debt for Americans isn’t helping either.

Normal duties of F&I Managers include:

• F&I Managers are mainly responsible for financing on behalf of a car buyer and will work with banks, credit unions, and other lenders to obtain the best possible financing options for the customer. This includes completing all necessary paperwork and ensuring that the customer understands the terms and conditions of their loan.
• Additionally, while finding and preparing the financing, F&I Managers will also offer various insurance products to the customer, such as GAP (Guaranteed Asset Protection), extended warranties, and other protection plans. They will explain the benefits of these products and help the customer choose the best coverage for their needs.
• F&I Manager must ensure that all financing and insurance transactions are conducted in compliance with federal and state regulations, and there is quite a lot of them to adhere to. They must also ensure that all necessary disclosures and paperwork are completed accurately and on time.
• This is also a great opportunity to make sure the dealership can win loyalty through customer service. F&I Managers are responsible for providing excellent customer service to ensure that customers are satisfied with their financing and insurance options. They must be knowledgeable, professional, and courteous when working with customers.
• Every part of walking into a dealership to look at the car and all the way to getting the keys of a new car and driving off is about “sales”. F&I Managers plays a role in the sales process by maximizing profit on each transaction. This may include negotiating interest rates, offering additional products, and selling aftermarket accessories.

Generally, the F&I Manager is responsible for ensuring that customers are provided with the best possible financing and insurance options while also ensuring compliance with all applicable regulations. They play an important role in the sales process by maximizing profit on each transaction and providing excellent customer service.

Specifically, they are responsible for many daily tasks:

Job Responsibilities include but are not limited to:

• Protects gross profit by arranging financing so outside sources do not have an impact on selling margins.
• Establishes lender relations that tie the customer closer to the dealership.
• Generates additional income through the sales of credit insurance, vehicle service contracts, GAP coverage and maintenance plans.
• Maintains control of all paperwork until it is ready to be turned into the general office.
• Responsible for all paperwork involved with the sale of the vehicle, including obtaining customer signatures and securing payoff and insurance information.
• Converts cash deals to finance.
• Establishes and maintains good working relationships with several finance sources, including the manufacturer.
• Processes finance and lease deals accurately and fairly through financial sources to secure approval.
• Conducts business in an ethical and professional manner.
• Processes all federal, state and dealer paperwork related to vehicle transaction.
• Understands and complies with federal, state and local regulations that affect the new- and used-vehicle and finance departments.
• Completes paperwork necessary for vehicle sales and leases in a timely and efficient manner.
• Checks all paperwork for correct title, lien information, taxes etc., before forwarding to accounting.
• Acquires and maintains current state insurance license, completing continuing credit insurance education as needed.
• Provides customers with complete explanation of manufacturer and dealership service procedures and policies.
• Manages the alternative finance source program to ensure that several sources are available.
• Seeks insurance companies for insurance paper.
• Maintains insurance files.
• Sets up and maintains a program that will ensure 100 percent turnover to the F& I department.
• Provides sales force and sales managers with current information about finance and lease programs continually.
• Trains the sales staff regarding the benefits of financing, insurance and extended service programs.
• Works with sales managers to secure a reasonable profit from every sale.
• Coordinates finance forecasting with sales department forecasting to achieve desired levels of penetration and income.
• Ensures collection of all finance and insurance fees.
• Takes all credit applications.
• Prepares reports on finance penetration.
• Attends managers meetings.
• Handles all rate quotations.
• Develops and monitors guidelines for working with customers to ensure maximum customer satisfaction.
• Supervises and trains designated backup to ensure continued efficiency and profitability in the F& I manager’s absence.
• Maintains an adequate and current supply of all required contracts and paperwork needed for completion and finalization of car deals.
• Maintains a professional appearance.
• Maintains a clean and professional work environment.
• Other tasks as assigned.