How Motorcycle Dealers Sell F&I Products
Today we’re going to show you how motorcycle dealers sell F&I products. More than 25% of the profit on any given motorcycle or powersports deal is made on the ‘back-end’ through the sale of F&I products. If you aren’t making that much keep reading and we’ll show you how!
You may hear some people refer the the F&I department as the ‘Found Income’ department because of its ability to make huge profits. The name is fitting; there is tremendous profit to be made on back-end products.
The first tip is to have a good attitude about F&I products. The whole team at your dealership needs to be positive about back-end products during the entire sales process. If the salesman at a motorcycle dealership says something like, “…now we’ll go see the F&I manager but you don’t really need any of what he’s selling…”, you are almost guaranteeing that the customer will have the same attitude. Everyone needs to be well-educated on the benefits of back-end products at your powersports dealership.
Hire the right F&I manager. This may sound obvious but there are some real qualifications that are needed if you want to maximize your back-end profits. Firstly, this person needs to be extremely well-educated on all the F&I products you sell. This person needs to know how to sell the benefits of these products, have some basic selling skills, and possess great discipline for doing paperwork. Who you hire to manage F&I at your motorcycle dealership has a lot to do with how much money they’ll make for you.
The third tip is to gather as many F&I products as you can. This will give the customer a lot of choices and they’ll feel better about the decision having made the choice themselves. Some states may require you to obtain an insurance license to sell certain back-end products, make sure to get that done as it is well worth it. Your whole goal is to offer a wide array of products that can satisfy the needs of any customer.
Developing lender relationships is a critical part to running a successful F&I department at your powersports dealership. If lenders won’t buy your paper, nothing else really matters. A good F&I manager is going to manage your lender relationships to make sure you can get the most profit possible from each deal. Lenders are often willing to bend their own guidelines for you from time to time if you build a strong relationship. Take the time to invest in these lender relationships.
The last tip is exposure. Every single customer that buys a motorcycle, ATV, or snowmobile from you needs to be exposed to the benefits of back-end F&I products. If they say no, at least you tried. You’d be surprised how many powersports dealerships don’t even offer F&I products or fail to offer them to every customer.
If you follow these simple 5 steps you’ll be well on your way to making more money on back-end F&I products at your powersports dealership. We hope you enjoyed our article on How Powersports Dealers Sell F&I Products.