I visited Beaverton Toyota prior to Christmas to meet with the Director of Human Resources about our 2016 plans for their 401k that we manage for them. After the meeting, I visited with some employees I was acquainted with and then I saw an employee in the main showroom. I introduced myself as the investment fiduciary that operates their 401k plan.
Our conversation provided some great insight into the evolving process of improving F & I sales and improving overall revenue at your dealership. (Please note that prior to publishing, I asked for and received Russ Humberston, Jr’s permission.)
I knew Russ and his senior team had undertaken a big step during the spring and summer of 2015 to shift the entire sales process from the initial test drive to financing and contracting to the individual sales professional that has been helping the customer.
I found out he was a new employee. After visiting about how I could help him with the 401k plan, I asked how having the sales professional handle the entire sales process was going for him as an employee with limited experience.
He said it was great! When they bring in their car, he looks at it with them. Depending on the condition of the car, he said he would suggest various products and services that Beaverton Toyota offers that would help increase the value of a future trade in.
He also mentioned that while a customer is excited on their test drive, it is a really good time to casually visit about financing options and to find out how they drive and use their cars. For example if they like to hit the mountains in the winter and are driving on sanded roads, rock chip protection and wheel packages might be a good fit.
It is great to hear one local dealership has empowered their employees to come up with their own ideas to increase profitability. For more examples of how dealerships around the nation are increasing F & I revenues please see this recent article from Automotive News.