How Much Does A Car Dealership Finance Manager Make
This article was co-authored by Brian Hamby and staff writer Jennifer Mueller, JD. Brian Hamby is the owner of Auto Broker Club, a trusted auto broker in Los Angeles, California. He founded the Auto Broker Club in 2014 because of his passion for cars and a unique knack for customizing the car sales process to put it on the buyer’s side. With 1,400+ transactions closed and a 90% customer retention rate, Brian’s focus is on simplifying the car buying experience through transparency, fair pricing and world-class customer service.
How Much Does A Car Dealership Finance Manager Make
There are 9 references cited in this article, which can be found later on the page.
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You’ve found the car you want, but now you have to face the finance manager. Unlike a banker, most money managers work on commission and their main job is to make money from dealers.
These skilled sellers are doing very well, but you can do better. Read on for everything you need to know to beat the financial managers at their own game and potentially save thousands on your new journey.
This article was co-authored by Brian Hamby and staff writer Jennifer Mueller, JD. Brian Hamby is the owner of Auto Broker Club, a trusted auto broker in Los Angeles, California. He founded the Auto Broker Club in 2014 because of his passion for cars and a unique knack for customizing the car sales process to put it on the buyer’s side. With 1,400+ transactions closed and a 90% customer retention rate, Brian’s focus is on simplifying the car buying experience through transparency, fair pricing and world-class customer service. This work has been viewed 5787 times. In the dealer world, when a seller closes a deal, they usually take all the credit. While they deserve some recognition for closed sales, one person who is often overlooked is the financial manager. Your dealership may have a different name for the cash manager, maybe it’s “business manager” or “F&I manager,” but it’s the same job. A 2018 study by the National Automobile Dealers Association (NADA) found that finance managers penetrated an average of 90% of new car deals and 74% of used car deals. The study also found that around 54% of the gross profit from car sales came from the back office.
This data shows that having a good money manager is critical to a dealer’s success. However, for a financial manager to achieve maximum success, they need strong support from the team around them. It is the responsibility of the sales force and the sales manager to provide the stages to facilitate a smooth transition to the finance manager’s office in the transaction process. In this article, we’ll tell you what you and your team need to do to make your finance manager a success.
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Think about how most dealers introduce their customers to the finance manager, it usually goes something like this: The seller establishes a relationship with the customer, the customer signs the closing documents and makes a deposit. From there, customers are taken to offices where financial managers request sensitive credit information and then offer protections such as insurance and guarantees. Until recently, clients didn’t care about these financial managers and had no reason to trust them. This makes it very difficult for a financial manager to sell a protection plan, as most clients only want to keep what is agreed with the salesperson.
You may not have thought critically about this, but now that we’ve just accepted it, you should be able to see why this process is problematic. Now let’s imagine a scenario where a financial manager is introduced to a client at the beginning of the process.
“Hey guys, this is Chris, our finance manager. He will help us with financing and ensure you have the right coverage for your needs.”
Now the financial manager is no longer a stranger to clients, and clients can enter the financial management office with more confidence and familiarity. This means less customer anxiety and mistrust and a greater likelihood that the finance manager will be able to sell additional coverage packages. As far as we’re concerned, it’s a win-win situation.
Store Puts F&i In Sales Managers’ Hands
For maximum success, sales reps must keep their financial managers informed of the progress of their deals. This way, when the client walks into the finance manager’s office, the manager already feels like they have a good understanding of the client’s situation and overall needs.
If financial managers know all of the above information, they will be able to think more effectively about packages that will meet the needs of customers. Not knowing these details is likely to frustrate the customer as they feel like they have to go through the entire process a second time.
It’s quite common for clients to have to wait a while before a finance manager is ready to meet them. While we know it’s tempting and easy to make your customers a coffee or pop treat and wait for them in the salon, we don’t recommend it. While your customer sits alone with their thoughts, it’s a recipe for the customer to freeze up and potentially walk away from the dealership and the deal. For this reason, we recommend trying the following to keep customers busy:
If you can embed this communication throughout your sales team and finance managers, you will be able to close better deals and help your customers.
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The Importance of Training at Your Dealership To become a successful car salesperson, basic manufacturer training and learning how to deal with common objections is not enough. If you want to have a highly trained sales force and reduce your turnover rate, you will want to implement the following 3 things in your training program. Now we are ready to go. The business manager directs you from the sales floor to what car dealers call “The Box,” but dealers prefer to call the business office, mostly because it sounds more interesting, but more because it’s time to get down to business.
This is a locked room with a locked door to store confidential information. It is also soundproofed at normal volume to the outside world so that passers-by cannot eavesdrop on conversations.
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It will probably be comfortable and well designed with nice pictures, business licenses, maybe some industry awards or awards for business managers. You’ll also likely see some flyers for aftermarket products and even samples of some auto parts. A good desk and possibly several monitors will be used to facilitate the signing of documents.
A trend I’ve seen recently in business offices is to have a large tablet that covers most of the desk so you can sign documents electronically to reduce paperwork. However, there will likely be some old school dot printers as well.
An inkjet or laser printer won’t work here because some documents have multiple carbon copies and require the dot matrix to touch the top of the paper so the impression follows through to the other pages behind it.
It is in the business office that the finance manager lives and sometimes eats in the dealership. It was their home territory, and everything was arranged that way for a reason. They are designed to instill confidence that you are dealing with established professionals and help them facilitate back-end product sales.
Day In The Life Of Sales And Finance Manager
While we’re on the subject, I’ll just take a moment here to explain back-end vs. the front end of the automotive industry. The front product is basically the car and everything you can see or touch. The sales manager’s job is to get as much profit as possible at the beginning of the deal. Now you are at the financial manager, they are
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