JMA Virtual F&I
As all areas of the automotive industry move toward using more technology, your finance and insurance department should also optimize processes to meet modern consumers who are looking for more efficiency and transparency while purchasing their vehicles. Virtual finance and insurance is a process that utilizes technology to enhance the F&I office and improve sales, into your car buying operations can benefit dealership staff and customers, allowing for a more pleasant purchasing experience for everyone.
Virtual F&I is a seamless, customer-focused way for dealerships to support digital retail in the finance department, creating a personalized, compliant approach to F&I and car buying.
F&I becomes “virtual” when a customer and F&I manager are in different locations. Virtual F&I adapts the in-store process to a digital experience while retaining the human touch and interactive components of communication in selling. In this model, the customer will talk to a finance manager via a video call, during which the manager will present the menu of products, determine a customer’s wants and needs, and use those insights to guide the customer to F&I products that will support the protection of their new vehicle.
The virtual aspect saves time for the finance manager and customer and enhances sales by bridging the gap between the physical and digital world, all while protecting profitability, increasing CSI and boosting efficiency. Having both traditional F&I and Virtual F&I at your dealership creates an omnichannel sales process that helps your team to comprehensively meet customers with varying needs.
Benefits for Dealers
Increased F&I Revenue
One of the most pronounced benefits of adopting VFI is the opportunity for growth in F&I revenue per vehicle sold. The transition to digital allows dealerships to streamline their operations and offer products to consumers in a more efficient and accessible manner, which in turn can boost revenue by ensuring buyers feel in control of the process and educated on all available options, thereby also improving customer satisfaction.
Operational Efficiency
VFI enhances operational performance by allowing F&I managers to conduct meetings and transactions through video conferences, reducing the need for physical paperwork and making the process faster. This efficiency not only saves time but also enables dealers to handle a higher volume of sales with the same or fewer resources.
Broader Market Reach Without Staffing Limitations:
By offering VFI, dealerships are not limited by staffing or proximity. If a Finance Manager calls out sick, there’s no associated backlog at the dealership since an agent will always be on hand to service customers virtually. Dealers can also reach a wider audience beyond their immediate market, expanding their customer base, which could translate into higher sales volumes.
Benefits for Consumers
Convenience
VFI offers unparalleled convenience to consumers, who can go through the entire car buying process from the comfort of their own home. This is particularly beneficial in scenarios where consumers might be hesitant or unable to visit a dealership in person, whether due to time constraints, distance or personal preference.
Transparency
Digital platforms can provide consumers with more transparent and accessible information about F&I products. This helps them to make more informed decisions without the pressure often felt in a traditional dealership setting, reducing the likelihood of cancellations and increasing customer satisfaction.
Speed
With VFI, customers no longer need to wait in the store for a finance manager to finish with another customer, significantly reducing the time they spend buying a vehicle. And with digital tools to further streamline the process, going from menu presentation to decision to purchase is quicker and more efficient.
Consumers who engage with digital channels like Virtual F&I for auto purchasing tend to report a more positive overall experience, and they prefer to do business with dealerships that prioritize flexibility, efficiency, and empowerment. Virtual F&I represents a win-win for both dealers and consumers. For dealers, it offers a means to increase customer satisfaction and establish new channels for profitability. For consumers, it delivers more freedom and flexibility when they engage with the finance office and review products before purchasing.
The automotive industry will only become more technologically advanced in the future. With modern customers wanting to spend less time in the dealership and be more informed through online research before they enter the dealership, it is crucial for dealers to have processes in place to strategically meet their customers in the car buying process.
You can provide the same customized, personal experience for your customers online as you would in-store in the finance department by transforming your digital retail lineup. Virtual F&I provides that seamless and transparent method that customers desire while helping automotive personnel save time in the sales experience.
With an experienced and engaged Virtual F&I partner that supports your dealership’s unique goals, your team can incorporate a modern process that emphasizes customer satisfaction and employee efficiency while promoting opportunities for growth.
While JM&A Group can assist you with setting up a virtual F&I process, JM&A cannot provide legal advice regarding state-specific regulatory requirements relating to the online selling process. Please consult your dealer counsel and dealer association for information on your state’s regulatory requirements.
Heather Wilkinson, AVP, Head of Market Expansion and Development, JM&A Group
