Demand for new and used powersports vehicles has dropped over the past year. As demand fluctuates and margins tighten, your team must work harder to maximize profitability on every unit sold.
Are you leaving money on the table because of overlooked gaps in F&I? Here are some of the most common areas we see powersports dealers miss out on profits.
Inconsistent Product Presentations
One of the most common issues is inconsistently introducing F&I products to customers.
When you don’t clearly explain the value of service contracts, tire and wheel protection, or GAP coverage to customers, they often decline. Their rejection is rarely because they don’t want protection, but because they don’t understand the coverage or risks that come with turning it down.
To improve your customers’ understanding of aftermarket products, the conversation of what to expect in F&I should start at the sales desk. While wrapping up desking, your sales team can start addressing the next steps in F&I, including signing the lending documents and choosing protection products.
Once customers are in F&I, confidently presenting a structured product menu with transparent pricing options builds trust and value. Train your sales and F&I staff to discuss every product with every buyer through clear, open dialogue to increase your penetration rates and overall profitability.
Manual or Fragmented Processes
Even strong F&I managers lose efficiency when the systems they rely on don’t talk to each other. While they prepare for the signing ceremony (or worse, while customers are sitting across from them), they’re often stuck tracking down and printing various documents, re-entering information across forms, switching between platforms, and faxing lender documents.
Not only do these inefficiencies lead to slow funding, they also increase the risk of errors and noncompliance. Delays in even one deal cause ripple effects that could result in lost sales opportunities and frustrated customers.
To ease tensions and delays in F&I, look for ways to standardize and automate your process:
- Digitize applications by hosting them on your website so you can pick up where customers left off.
- Auto-populate forms based on vehicle, lender, trades, state, and more.
- Integrate your platforms so data syncs seamlessly and eliminates the need to rekey information.
- Streamline lender submissions to select the best lender for the deal and receive quick decisions.
Closing the Gap
Your team’s ability to confidently close deals and upsell add-ons using a smooth, transparent process will enhance your profit margins even during fluctuating demand for powersports vehicles. By mitigating operational gaps, you can strengthen both your bottom line and your relationships with customers.