Let’s put your career into perspective.
Take the # of vehicles your dealership sells each month, on average (for the purpose of this exercise, we’ll use 50 but to determine your own responsibility formula, use an accurate # that’s applicable to your store).
Now take the average price of the vehicles you sell each month. For a new car franchise store, the average vehicle price is approx. $32,000-ish. If you sell only used vehicles or if you work in a high-end luxury store, you will want to adjust this average vehicle price according to your inventory. This is only an approximation so use a guess-ti-mate if necessary. For this exercise, we’ll use $32,000.
The result of this calculation is $1.6 million. That’s the amount of money going through the hands of an F&I Manager that handles 50 retail deals a month, at an average price of $32,000. If your store does less or more business, this number will adjust accordingly. The point here is that you probably never imagined how much financial responsibility is at your fingertips. You are responsible to collect all that money, either directly from the customer or from a financial institution where you have arranged financing for the vehicle. On top of that, you are expected to sell after-market products to the tune of $1000 to $3000 (on average) per unit.
This example is meant to illustrate the huge responsibility you have at your fingertips with this career. Take it seriously and treat it like a profession. You can make a terrific living as an F&I Manager by simply recommending products that will serve your customers future needs. Create a package that makes sense to the unique circumstances of each customer. Educate, inform and create relativity of your recommendations to match their lifestyle. Have fun and keep an eagle eye on the cash flow. Over $1.5 million going through your till every month can jeopardize the financial well-being of your dealership if there is a delay in funding finance or lease contracts.
Tags: average, calculate, customer, dealership, F&I manager, financial responsibility, formula, vehicles
