Greatest Profit Opportunity in the F&I Department?

[XDCX]

As new-car gross profits continue to slide, dealers are being forced to rely on their F&I Department for additional profits.

The purpose of this post is to survey Finance Managers in an effort to determine what they believe are their greatest profit opportunities for 2008?

The question will be posed to each franchise group in an effort to determine if the answers differ based on the franchise. As an example, is it easier to sell a Service Contract on a domestic vehicle than an import? Is it easier to hold rate on a lower priced car line than a high-end car line?

So, here's the question for the Finance Managers: What's your greatest opportunity to increase profits for 2008?:

Interest Rate Reserve
Vehicle Lease Reserve
Service Contracts Sales
Maintenance Plans
GAP Coverage
Life, Accident and Health Plans
Vehicle Accessory Sales
Chemicals/Appearance Products
OtherPlease take a moment and share your thoughts - maybe you have an idea that could help someone else?

[JUNIOR]

Now that I have moved to F&I, I am looking for new ways to sell more products and fatten up the gross profit. We signed with JM&A and they have good stuff, but thier stuff is expensive and on New Kias, it is hard to justify some of the prices. Plus, their margins aren't great. Does anybody have any menus they use and can they fax me a sample? My fax is 201-266-8166. Also, does anyone do in house service plans (full or just oil changes) and how effective is it?

[crowe]

Sell the 10/100 wrap. Cost should be about 700 & sell for 1700. Covers what the 10/100 powertrain doesn’t. It’s worth it just for the radio coverage because factory radio coverage is 36/36 & some of the radios cost $2,500+ to replace. You can sell the wrap on CPO too.

JM&A should set you up w/ a menu that you can customize & print from your computer.

Make half the gross in rate, the other half in product, try to convert cash deals into finance & take all TOs for cash out-the doors quotes before they leave. If they come back w/ a check before you pitch your toast.

[XDCX]

Here's a website you might want to check out for some of your F&I questions - F&I Magazine - Forums (http://www.fi-magazine.com/forum/)

I know we have some members who post on both sites and I visit their forum on occasion and find they have some great topics.