Dealers have been reluctant to move F&I product information online, but that’s costing them in F&I sales, found a study commissioned by MakeMyDeal.
“F&I is one of the biggest parts of the buying process that has still not moved into the digital age, and dealers have been hesitant to evolve this process because it’s a major profit center,” said Mike Burgiss, founder and vice-president of MakeMyDeal, a Cox Automotive company that enables shoppers and dealers to negotiate on the terms of a car deal online.
The study surveyed 500 U.S. car shoppers in September of 2014 and found the key to increasing consumer education about F&I products is by moving information online, and introducing consumers to F&I products prior to vehicle purchase.
“By changing when and how the shopper is introduced to F&I products, dealers could see a dramatic change in consumers’ likelihood to buy F&I products,” said Burgiss.
Burgiss said the current F&I buying process has consumers skeptic about the value of these products.
About 61 per cent of consumers surveyed thought the products sold in an F&I office are just ways for the dealer to make money.
But consumers do think F&I products can offer them value — two thirds of those surveyed think these products might even save them money in the long run.
What holds consumers back from purchasing an additional product is a lack of information, said Burgiss. One third of respondents find the list of F&I product choices confusing.
If consumers could learn about the products online and on their own time prior to purchasing their vehicle, about 63 per cent of car shoppers would be more likely to buy these products.
“When F&I product information and pricing is brought online, the dealer not only provides an exceptional buying experience, but they also help more shoppers realize the value these products provide,” said Burgiss.
