When and Why to Consider Outsourcing a Finance Department
We spend a lot of time on our blog explaining the benefits of moving to an outsourced F&I model for your dealership. We explain how it works, how it will positively impact your business, and more. Here, we will get at a slightly different question: Why is outsourcing the better option? Put another way: What will the financial benefits mean for you, your dealership, your employees, and your customers?
F&I Companies—An Overview
First, let’s go over the basics and the financial impact outsourcing can have.
20% More Loan Approvals – Finance Solution has a proven track record of securing more approvals from lenders for RV and boat buyers, even those with lower credit scores. This is only possible because of our relationships built with lenders over the years combined with the expertise and experience of our team.
Reduced Overall Costs – Hiring an outsourced provider like Finance Solution is a far more affordable solution than recruiting, training, paying salary and benefits, and generally maintaining a workforce of internal F&I managers.
A Full Product Suite – From insurance to warranties and, of course, financing, Finance Solution handles the entire process. Once your sales staff has helped a customer select their new RV, we’ll handle the rest and ensure a seamless transition. In other words, we’ll get that unit off of your lot.
The Advantages of Outsourced RV and Boat Dealer Financing
The men and women who make up your sales staff are fundamentally committed to doing one thing: showing and selling RVs, boats, campers, trailers, and more. Adding financing, insurance, warranty sales, and more to the list goes beyond the scope of what their job ought to be. Now, you might be asking yourself, “Isn’t it more cost effective to have one person driving the entire process from beginning to end?”
The problem is that while your sales staff may be incredibly talented, there is only so much one person can handle. What they do best is selling on the showroom floor—taking them off to sit in an office to manage lender relationships and secure financing is not an effective use of their time.
Instead, your staff can make the sale and perform a seamless handoff to the team at Finance Solution—which, by the way, can integrate closely with your operation so the customer doesn’t feel like they’re being passed around—and then move on to the next potential sale.
Your sales team can do their best work, what they’ve trained and practiced for, and improve your bottom line only when they are allowed to focus on the task at hand.
Why Outsource Dealer Financing vs Bank Financing?
We’ve gone through why it’s best for your dealership and your salespeople to outsource your F&I services, but what about the customers themselves?
Finance Solution was started in order to find the best way to finance vehicles for mission trips around the United States. That was our “why” when getting into the industry. Everyone’s purpose is different and, even if that purpose is simply to secure a healthy bottom line and build a business, the “why” comes down to the customer.
Outsourcing your F&I is one of the fastest, most efficient ways to improve the customer experience. In fact, our partners end up receiving more positive customer reviews after signing on. This, of course, isn’t our product, but it goes a long way in showing that over time more customers enjoy working with our partners.
If you’re looking for referrals and even repeat business, it’s best if everyone is happy.
Outsourcing your F&I with Finance Solution does more than just boost your bottom line. We’re improving dealerships on a fundamental level.
If you’re currently managing F&I in house, we’re not pressuring you to make a switch to our services. However, it’s worth knowing your options.
One of the hallmarks of our service is how flexible we are. So, whether you’re entering a particularly busy month and you need some outside support, or you are looking for a reliable, full-time solution, we’re here to help.
Give us a call today and we’ll be happy to show you what we’ve got.