Should I Outsource My Finance Department? F&I Service FAQs You Might Be Asking

For years, successful enterprises have leveraged the advantages of outsourcing to stay competitive. In a world where virtually every market can benefit from supplemental help, the RV industry is no exception.

However, it’s important to note financing and insurance (F&I) service quality isn’t consistent across the board, and your ROI largely depends on the provider you choose. With so much riding on the quality of your outsourced loan service, picking the right partner can seem like a daunting task, and you probably have a few questions, like:

Businessman team working at office with document on his desk

What are the Benefits of Outsourced Financial Services?

RV dealerships often turn to outsourced F&I services to help streamline their operations, lower fixed overhead costs, and increase profit margins. However, the benefits don’t stop there, as the right F&I service also delivers the following advantages:

Focus

Once the salesman writes up the deal and submits it, your F&I service handles the rest of the finance process, including:

Matching the loan
Contacting the customer with terms
Gathering insurance and payoff information
Presenting the protection plans to the customer in a simple menu format
Preparing the closing documents

Essentially, having an outsourced partner who’s focused on back office functions gives you the freedom to focus on what matters most—your daily business operations.

Resources

Given the seasonality of the RV Industry, outsourcing your F&I department helps eliminate the costly overhead of a salaried in-house team. Instead of signing paychecks during the slower months, F&I services convert this fixed-cost to a variable, per-deal cost.

This enables your dealership to be more flexible during the RV offseason, allowing you to focus on sales and service during high-demand months. It’s important to note, regardless of the size of your business, third-party F&I teams can help RV dealers:

Maximize their closing percentages
Finance any reserve and backend profits
Maintain proper compliance

Experience

Let’s face it, procuring the proper financing for customers is by far the most essential aspect of the closing process. Luckily, outsourced financing departments partner with your staff to accurately quote financing terms, set customer expectations, and improve the customer experience. High-quality F&I services are well-equipped in the financing process, and know exactly how to match unique credit profiles and deal structures to find the best fit for your clients.

Why Does Experience Matter When Choosing a Recreational Finance Company?

Simply put, your F&I service’s expertise matters because it helps you get the financial assistance you need. As a helpful tip, always choose a company with experience in financing the type of vehicle you sell on your lot.

Most reputable outsourced financing companies have experience in several different types of vehicles, including boats and campers. Having a partner who’s already established in the industry makes it far easier to:

Find loan amounts and interest rates that work for your customers
Leverage existing connections with lenders and vendors
Get your loans and other financing options quickly approved

If you’ve been watching the news lately, you’re all too familiar with economists hinting at a recession. With the RV industry starting to slow down, you may find yourself asking, “What should I do to manage my finances?”

Here’s a Few Things to Keep in Mind

What Should I Look For When Evaluating Third-Party F&I Services?

Finding a high-quality F&I service doesn’t need to be challenging. To find a reputable provider, look for the following factors:

Online Reviews

When searching for professional F&I services, online reviews are a great place to start. Create a list of potential companies and read their reviews on Google, Facebook, and Yelp.

Because these are the three major review websites, you’ll get a large sample size of customer experiences. Reading through several testimonials gives you a comprehensive picture of what the company does and, more importantly, how well they do it.

However, it’s important to note that no outsourced financing company delivers perfect service—mistakes happen. Even the highest-rated F&I providers have the occasional customer who’s unhappy with the service provided.

As a general rule of thumb, don’t get too hung up on a bad review; instead, look for patterns. If you see multiple reviews noting poor service, that’s when it’s safe to assume that quality is an issue this company needs to work through.

First-Hand Experiences

While online reviews can be helpful, they shouldn’t be the end-all-be-all in your search for a recreational financing company. You should also talk to other businesses and RV dealerships, as there’s a good chance several of your local connections have used an HVAC company, they’re willing to vouch for or, more importantly, recommend avoiding.

Ask your personal and professional connections questions like:

What made your experience with this F&I service good or bad?
How attentive were they to your customer’s needs?
Were they flexible with loans and interest rates?
Did they try to secure the lowest rate available?
Was the price fair for the service you received?

Just remember, if they used a F&I provider more than two years ago, take their recommendation with a grain of salt. Companies can improve and change over time, and it might be worth giving them the benefit of the doubt. After all, in the financing industry, most poor customer experiences are caused by poor employees. A lot can change over two years, including the service staff.

Finance Solution: Your Trusted Choice for Outsourced F&I Services

At Finance Solution, we know exactly what it takes to streamline your loan applications. Our staff has decades of experience in helping RV dealerships supplement their financing and insurance processes. Start a conversation to learn more, and discover the difference that comes with a reputable F&I provider.

“As a small RV dealer, we rely on Scott and his guys at Finance Solutions daily. After switching from one of his competitors, we have seen a drastic increase in customer service and customer approvals. These guys work for you! I highly recommend them to any independent dealer who sometimes can’t keep up with all their financing needs in-house.”

– Josh Hoffman, Sunnyside RV