Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the...
Transcript of Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the...
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Learn from the leaders in F&I: A Panel Discussion
Moderated by David Parker
“F&I is how you make the money. Compliance is how you keep it.”
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 3: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/3.jpg)
Finance Department Best Practices
Jared Zimlin – Priority One
• F&I = Sales Position not clerical
– Selling & Reassuring Customer
– Selling Underwriters • Why they should buy the deal
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 4: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/4.jpg)
F&I Menu
• The best way to present to all customers every time
– “Sign to decline”
– 100% T/O = Most $
– 3 x 100!
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 5: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/5.jpg)
Reserve
• Initial Interview
• How much above buy rate do you start with?
• How do you ask for it?
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 6: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/6.jpg)
Gap / Credit Life / Disability Insurance
• What is it?
• Who should buy them?
• How do you ask for it?
• “Sign to Decline”
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 7: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/7.jpg)
Extended Warranty
• How do you ask for it?
• “Sign to Decline”
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 8: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/8.jpg)
Tire & Wheel Coverage
• Presented on the Menu
• Similar to AAA – Except covers the tires and wheels
• Often offered through Extended Warranty companies
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 9: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/9.jpg)
Prep the Customer for T/O to Business Mgr.
• Bring up the topic of financing
• Cash or Finance?
• Mention a product or two…
• Introduce the Business Mgr.
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 10: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/10.jpg)
Know Your Lender Limits
• Some will advance 120% plus extras– Tax, Reg., After Market Products
• Some = 130% of advance all inclusive
• Can be $3,000 to $5,000 + / deal for after market products
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 11: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/11.jpg)
Document Fee & After Market Products
Mark Vanlente – Action Water Sports
• Different names – - Doc Fee / Admin Fee, etc.
• What is a reasonable charge?
• Some states limit the amount
• Many states – charge to one customer, must charge to all
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 12: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/12.jpg)
Document Fee & After Market Products
• Make the Doc Fee Non-Negotiable
• Preprint Doc Fee on sales order
• Charge the same $...cash or finance
• Many states = taxable
• Charge for freight and prep instead?
• How do you explain what it is for?
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
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After Marker Products
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
Retail Insurance
•Better Coverage…Stated/Agreed Value vs. Market
Value
•Bind Coverage on Weekends
•Marketing Fee Paid on each referral?
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Aftermarket Products
• Pre-paid service (Provided In-House)– Bundle 2-3 Seasons Maintenance/Storage– 50/100/150 Hour service included– Discount 20% to 30% for prepayment– “Worry Free” Boating for 2-3 seasons
• Fiberglass & Vinyl / Upholstery – Many sell for $1,499 cost installed $450=$1,000 + profit
• Any other products???
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 15: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/15.jpg)
Subprime Credit RisksGlynn Cooper – Marine One Acceptance
• How is it different from “A & B” Risks?– Indirect Paper Only–Max Loan/Term–Recent Bankruptcies–Reserve Paid?–Avg Credit Score?–Non-Recourse Loans?
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
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Credit Application Best Practices
• Credit Application –More information - Quicker approval
–Written Authorization
–Minimize Access
–Keep it Secured
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 17: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/17.jpg)
Credit Application Best Practices
• Credit Application –Written Security Procedures w Chain
of Authority
–Written Procedures for Storage
– Ignorance of rules opens mgmt to Personal Liability!
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 18: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/18.jpg)
Compliance IssuesLen Bellavia – Bellavia & Gentile
…Compliance is how you keep it!
•Privacy Act – 2 Components
1.Privacy Notices- Dealership policy – How their private
info is collected, stored and protected- Includes SSN and DL #’s
2.Safeguarding information - What you need to know & do
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 19: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/19.jpg)
Compliance Issues…Compliance is how you keep it!
2. Safeguarding information – Must be secured at ALL times
– Designated person to pull Credit Bureaus
– Keep credit apps for two years
– Proper disposal of documents – Shred or Burn
– Penalty for Non-Compliance = $11,000!
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 20: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/20.jpg)
Compliance IssuesOFAC Check List “Office of Foreign Asset Control” = Terrorist Watch List
•Keep a copy of Driver’s License and OFAC Clearance in each deal folder
•Penalties for non-compliance – $5m fine & 30 years in prison
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 21: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/21.jpg)
Compliance Issues• Red Flags – Written Manual
– Compliance Officer in dealership
– Red flags check – copy in deal folder
– Max civil penalty = $3,500 per violation
– Medco, FPC are sources – OFFAC & Red Flags Checks
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 22: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/22.jpg)
Compliance Issues
• Patriot Act – 3 Provisions
1. Cash Reporting – Form 8300– $10,000+ collected in cash
– Includes cashier’s and bank checks
– Does not include personal checks
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 23: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/23.jpg)
Compliance Issues
• Patriot Act – 3 Provisions2. Adverse Action Notices
- Circumstances when a dealer is required to provide…
3. Notations on Credit Report- Must call customer
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 24: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/24.jpg)
Compliance Issues• Fair Credit Reporting Act (FCRA)
Requirements:1. Risk Based Pricing Notice
2. Credit Score Disclosure
3. Keep all credit applications 24 months
4. Penalties – - $100 to $2,500/infraction
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 25: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/25.jpg)
Compliance Issues
Truth in Lending Act (TILA)”Regulation Z” •Accurate Marketing Disclosure of –Down payment, terms & APR%
•Trigger Terms:– Down Payment– Interest Rate or Term
•Penalties – Up to $5,000 fines + up to 1 yr in prison
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 26: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/26.jpg)
Compliance Issues
Electronic Security•Enterprise level Firewalls
•Intrusion Detection System (IDS)
•Backups daily
•Employee access restricted
•Complex passwords – changed often
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 27: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/27.jpg)
Compliance IssuesElectronic Security•Lock file and server room
•New Login required if no keyboard activity
•Background checks on all employees
•Cross shred all sensitive documents
•Email filtering for personal info – SSN’s
•Do not email credit apps or contracts
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 28: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/28.jpg)
Summary“F&I is how you make the money, compliance is how you keep it”
•Ways to increase Income– F&I Menu
– Reserve
– Doc Fees - $399.00 / deal
– Subprime Lenders
– GAP/ Credit Life/ Disability
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 29: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/29.jpg)
Summary“F&I is how you make the money, compliance is how you keep it”
•Ways to increase Income– After Market Products
• Extended Warranty
• Tire & Wheel
• Retail Insurance referrals
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 30: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/30.jpg)
Summary“F&I is how you make the money, compliance is how you keep it”
•Ways to increase Income – cont’d– After Market Products
• Fiberglass / Upholstery Protections +$1,000/deal
• Prepaid Service
• “Sign to Decline”
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 31: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/31.jpg)
Summary“F&I is how you make the money, Compliance is how you keep it”
•Procedures for Compliance– Credit Applications
– Safeguarding Information
– OFAC and Red Flags Check Lists
– Form 8300 – $10,000 Cash Rule
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 32: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/32.jpg)
Summary“F&I is how you make the money, Compliance is how you keep it”
•Procedures for Compliance– Fair Credit Reporting Act
• Risked based pricing notice• Credit score disclosure notice
– Regulation Z – Payment Disclosures• Trigger Terms – Down Pmt, Rate, Term
– Electronic Security – Firewalls, PW’s, etc.
Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.
![Page 33: Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the.](https://reader036.fdocuments.in/reader036/viewer/2022062511/5513de2755034679748b52fc/html5/thumbnails/33.jpg)
F&I Panel
Questions?Learn from the leaders in F&I
Moderated by David Parker
Tuesday, Nov. 132 p.m.