Looking Ahead & Looking Back – F&I Trends
As we wave goodbye to a tumultuous 2016 we turn toward 2017, a year that almost certainly will see changes in the regulatory environment. Whether those changes are sweeping or a little here and there is yet to be seen. But what we do know is that your dealership will still be selling cars. This means your F&I department will still be busy and will need to be in the know so they can stay in compliance when changes do come down the pipe. We’ve gathered three articles about the trends of the past and predictions for the future to help give you a sense of which direction regulations may be going.
4 Compliance Predictions For 2017
Gil Van Over from F&I Showroom offers his predictions for 2017 with the disclaimer that of the industry predictions for 2016, “How many of them were right? Not many, I predict.” But still, he forges ahead with 4 of his own. The one we would like to showcase is #1: “Compliance Management System” Becomes 2017’s Buzzword. Gil is suggesting that it might be high time to gather your resources and embrace the CMS. Your lenders have had to and now it’s your turn. Keep in mind though, you may be halfway there if you are already in compliance with (FTC)’s Safeguards Rule and Red Flags Rule which require some form of a CMS.
A Look Back at 5 F&I Trends We Watched In 2016
In opposition to the previous article, Hanna Lutz from Automotive News listed five predictions they made for 2016 that proved pretty accurate. The one that stands out the most to us is #2: Political opposition to CFPB. The reason this stands out is, of course, because it is a trend that we will see continue in 2017. In 2016 there were multiple bills introduced and passed to limit or change the CFPB’s reach. While these small victories were successful in 2016, the shift in political power in 2017 almost assuredly means more changes are imminent.
2017 Hiring Trends That Will Impact Your Dealership
Not so much predictions as new tools for your F&I department, Glenice Wilder from Motorcycle & Powersports News offers up three suggestions to be aware of to increase profits in your F&I department. We think the most important of the three is Leveraging Virtual F&I. In this digital age there are many tools available to help streamline the process of buying and selling everything, from clothes to groceries. But it still tends to take hours to purchase a vehicle. While it makes sense — it is a large purchase — a dealership that can offer a streamlined process would certainly be able to consider that a competitive advantage. The tools Glenice recommends using are Skype-based presentations or online menus for F&I options. This allows the consumer to be more prepared when it comes to signing on the dotted line.
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