Online Shopping Takes the Wheel: Embracing Change in the Auto Industry

In today’s digital age, it’s no shocker that consumers are flocking online to make their purchases. Post-COVID, internet sales have surged, and this trend isn’t slowing down. Interestingly, even those who visit physical showrooms have usually browsed online first. This begs the question: in a world dominated by software and technology, why haven’t auto dealers mastered an online transaction system that delights consumers and remains profitable?

The crux of the issue lies in the traditional Finance and Insurance (F&I) process

F&I managers, the backbone of dealership financing and insurance, are accustomed to a personal, in-office approach to sales. This method involves listening, interacting, and overcoming objections face-to-face. Understandably, high-performing F&I managers might resist changing a formula that has historically proven successful. Furthermore, dealerships hesitate to disrupt this way of doing business, wary of losing crucial revenue from their F&I departments.

Most successful dealers have developed an online sales presence and a marketing strategy for automotive sales, yet we can’t seem to get there in the F&I office. Despite the challenges, there’s a clear consumer demand for online vehicle purchases and document signings, especially among those under the age of 50. Our vehicles are modern engineering marvels, evolving into complex technological wonders, requiring skilled technicians for maintenance and repairs. Consumers want assurance that they will receive support when needed, which should be manageable in an online format.

Here’s how we can revolutionize the F&I experience with a customer-friendly, digital-first approach:

1. Implement Online Document Management: Utilize tools for online document delivery and secure digital signatures. There are numerous effective solutions available.
2. Engage Customers Early: Deliver protection options to customers before the final transaction to encourage discussion and ensure transparency.
3. Interactive Video Chats: Integrate a video chat feature that allows F&I managers to engage with customers remotely, maintaining the personal touch that is crucial in financial discussions.
4. Simplify Choices: Rather than overwhelming customers with options, curate packages that meet their needs, presented as either “Variable” or “Secured” payment plans.

The goal of online transactions is to streamline the process, offering speed, simplicity, and transparency. Imagine a system where an F&I manager explains via video chat how a secured payment plan with comprehensive protection products could eliminate the stress of unforeseen repairs, compared to a variable payment plan that might lead to additional costs. This approach not only simplifies the buying process but also paints a worry-free “gas-n-go” ownership experience for every customer.

Adopting such innovations will not only meet current consumer expectations but also pave the way for a new and improved F&I process. As the digital landscape evolves, so must our methods, ensuring that buying a car online is as straightforward and enjoyable as cruising in one.