Operations relating to finance and insurance in Brandon Steven Motors have increased the F&I profit for every vehicle due to a novel approach taken by Dan Mason, the director of corporate platform finance.
Finance and insurance by fire
The Brandon Steven Motors Group has a total of six franchised stores dealing in new vehicles. The number of used stores consists of only three, with a number of them operating under a different name, Eddy's Everything. This dealership, in 2017, with headquarters in Wichita, Kansas, with stores in the Lee's Summit, Mo, sold about 5,660 brand new vehicles. About 5019 new vehicles were sold by franchised stores. The used-only stores sold 2,695 units.
Mason's novel approach involved placing the managers in the middle of what is happening in the company. Mason is engaged in the training of F&I managers from the nine stores operated by the group during the monthly meetings. The subject matter of meetings may change but the empirical focus remains constant- an effective and extremely transparent F&I process.
Meetings and benefits
These came to the fore during the meetings held in April and May. Mason requested the finance managers to overcome an objection regarding the F&I product. He asked them to discuss in twos. The two managers would complete what they have been tasked to do in front of many of their peers. The group then voted on who overcame that particular objection better. Mason clarified the benefits of this approach. He said that not only are the managers getting their ideas and feedback from him, they also get to pick each others' brains. The hardest thing to do is to come up in front of peers handling all the objections. If they can be successful against each other, they can do it easily for the customer.
Other than the training meetings, the emphasis was placed on collaboration and transparency. This assisted the dealership group to increase the F&I profit for every vehicle from $300 to an excess of $1,400 on an average. Chargebacks were also decreased by 50 percent within a period fewer than six months. According to Mason, the majority of finance managers are experienced individuals, but thanks to him, they are open to varying their F&I strategies. Before joining the Brandon Stevens Motors company, Mason was a finance director and general sales manager. He has seen a number of F&I departments in various dealerships for about 13 years.