Welcome to Training Camp with F&I expert Adam Marburger, exclusively on CBT News! In this episode, Marburger explains why F&I products are more crucial than ever in today’s automotive market. With customers facing economic uncertainty and longer vehicle ownership, Adam describes how offering the right F&I solutions—without high-pressure tactics—can enhance the customer experience and boost dealership success. Tune in to discover how to better serve customers and help them protect their investments with the F&I products they want.
Key Takeaways
1. With rising inflation, consumers are taking F&I products like service contracts more seriously. High living costs make customers realize the importance of safeguarding their vehicle investments, especially when they’re living paycheck to paycheck. Offering these products without doom-and-gloom tactics but rather with informative guidance is key.
2. Due to economic uncertainty, consumers are holding onto their vehicles for longer periods. This shift presents an opportunity for F&I professionals to offer protection plans that align with the vehicle’s extended lifespan, ensuring coverage beyond the factory warranty period.
3. Customers want the least aggravating ownership experience. They buy F&I products because they don’t want to deal with repair costs or service issues down the line. F&I products like maintenance programs and service contracts can offer a frictionless experience by covering repair expenses, providing rental cars, and minimizing disruptions.
4. With loan terms stretching to 84 or even 96 months, customers are financing vehicles longer than ever. As the factory warranty runs out during the early phase of ownership, F&I products ensure the car remains protected throughout the loan term, giving customers peace of mind.
5. F&I products, such as service contracts, add significant value to vehicles when it’s time to resell or trade them in. A vehicle that’s been well-maintained and protected through service contracts is more appealing and commands a higher trade-in value, making it a smarter long-term investment for customers.
"Remember, customers want to buy F&I products—they just don't want to be sold. When we slow down and provide the information they need, we're helping them protect their investments while enhancing their ownership experience." – Adam Marburger.