Brian Reed, President & CEO

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2 Brian Reed, President & CEO

3 Digitizing the F&I Experience

4 Our Review for Today Audience Online Survey Digital F&I What is it? Online/Digital Retailing Review Consumer Research Around Digital F&I Digital F&I Examples in the Marketplace Benefits of Digital F&I Ideas to Think About

5 Online Phone Survey Text Number Type BrianReed727

6 What is Digital F&I It IS all or part of the following: Dynamic online menus. Dealer website content. Online submission of credit application with response to consumer before coming into store. econtracting of finance/lease deal. econtracting of aftermarket F&I products. esignature. edelivery. Electronic transparency. Full online F&I on website.

7 What is Digital F&I It is NOT: 4-column static paper menus. Traditional processing and sale of F&I using pre-printed 5-ply forms. Rate books. Verbal only presentations. 5-finger wet signature close.

8 Online Retailing is Here

9 Auto Buying Process is Evolving A challenge posed by this change for car companies is the migration of the so-called online/offline customer experience. Nowadays the average number of showroom visits a customer makes before a new car purchase is on an average 1.4 down from four visits. Customers walk into a dealership with their homework done.

10 I can buy everything else online, why not my next car?

11 There Are Many Examples of Digital Retailing in the Market Today Dealer.com/Dealertrack General Motors

12 Beepi USA Today

13 Vroom

14 Carvana

15 Roadster

16 Shift

17 Digital Car Retailing is Further Evolved than Digital F&I

18 Online Auto Loans Before going to the dealer, consumers can search for online auto loans and get many results: Direct to consumer. Direct to consumer that lenders refer to dealers. Many dealers incorporate credit applications and payment calculators into shopping process off of Vehicle Detail Page (VDP).

19 What Do You Do When You Want to Research/Buy Something Like: Television Computer Car House Tools and Hardware Vacation Jewelry Restaurant Hotel Insurance Clothing Furniture Telephone Schools Flowers Home Services What function that is part of the automotive sales process are you unable to find good information about through an online search?

20 Aftermarket F&I Products Have Limited Online Information Generic information often provided by direct marketers. Many specific searches lead with BBB complaints. Generally provides customers that want to learn more about F&I products with limited information.

21 Do Consumers Want to Research F&I Products and Services Like They Do the Car They Are Buying Online?

22 70% Want to start the financing process ONLINE. MakeMyDeal

23 83% Say they are interested in learning about F&I products BEFORE entering the dealership. AutoTrader 2014 study MakeMyDeal.

24 Preferred Method to Learn About F&I Products 34% 71% Want to do research at home. Through a 3 rd party website. 32% Through a dealership website. 22% Through an OEM website. 11% Through a print publication. AutoTrader, Online Retail F&I Study 2015

25 61 Minutes Average time consumers spend in F&I. MakeMyDeal Base: All Respondents (n=500) Q4. Please indicate your level of interest in learning more about vehicle protection, insurance and finance-related products of a vehicle purchase process BEFORE entering the dealership.

26 63% Of consumers are more likely to purchase F&I products and services if they can learn about them on their own time, before finalizing their vehicle purchase. MakeMyDeal Base: All Respondents (n=500) Q4. Please indicate your level of interest in learning more about vehicle protection, insurance and finance-related products of a vehicle purchase process BEFORE entering the dealership.

27 Upfront Consumer Education Will Help F&I Vehicle Service Contract Tire & Wheel Protection Windshield Protection Key Replacement Paint & Fabric Protection Dent/Ding Protection or Paintless Dent Repair Guaranteed Asset Protection 79% 77% 76% 72% 71% 68% 94% Many consumers cannot correctly identify what specific F&I products do. % INCORRECTLY Define Product/Service (AMONG THOSE WHO SAY THEY ARE FAMILIAR WITH PRODUCT) 46% 38% 56% Prepaid Planned Maintenance Etch/Security Labels 54% 68% Vehicle Service Contract Guaranteed Asset Protection Prepaid Planned Maintenance

28 True Digital F&I is Evolving Online credit applications are available on many dealer sites. Early stages of providing F&I education and pricing on dealer sites are underway. How to best present products and information resulting in the highest conversion rate at dealership is the key. Analytics with A/B testing will optimize over time. Focus today is largely the education of the consumer on products vs. transacting online. Many dealer website vendors and related are in process of offering F&I product education and pricing as a dealer option. More in-store dealer menu companies offering online presentation of F&I products on tablets/dealer kiosks.

29 MakeMyDeal MakeMyDeal provides F&I product information and pricing specific to the dealer as the consumer is shopping for the car.

30 Motorize Provides dealers ability to research, price, and add products to the deal, similar to Amazon.

31 Dealer.com/Dealertrack

32 Darwin Selling System Customer Interview Via Smart Phone Customer-Specific Needs Analysis Final Customer Acceptance Via Tablet

33 MenuMetric Interactive Menu at the Dealership Menu to the Consumer

34 Online Menu link to customer between agreeing on deal and before delivery. Allow a way to provide customized product information to customer prior to coming into F&I office.

35 AutoNation Express Moving towards having entire car deal done online, including F&I. Over $100 million investment. Paperwork challenges slowing down implementation.

36 The Digital Solution MaximTrack emenu Save customers time in the finance office, and address their desire for transaction transparency and efficiency. Add value to customers vehicle purchase by ensuring the right products are presented clearly. Increase the dealership s ability to sell more aftermarket products and boost PVR. Ensure recordable compliance to all essential F&I trade practice regulations.

37 Dealers Need Online F&I to Perform Financially Like in Store In the third quarter, AutoNation averaged $1,549 in F&I revenue per vehicle retailed on a same-store basis, an all-time high for the six public retailers. It was a 10.4 percent increase over the year-earlier period.

38 Digital F&I Benefits

39 Even Incorporating Some Aspects of Digital Process Can Enhance Customer Satisfaction

40 D e a l e r t r a c k, I n c. Many Different esignature Options Are Available esignature Completes the Deal Profitably and Efficiently

41 Moving Towards Digital F&I Does your dealership offer the ability for a customer to submit a finance application online? Is the finance application imbedded in the online shopping experience? Does your dealership use the finance application as a lead and tell the customers to come on in? Do you think the customer wanted an answer on the credit application when it was submitted? When a customer has a question about interest rate on the phone, are they told to come on in? Does your dealership have a strategy around providing more and better F&I product information upstream in the process before the customer comes into F&I? If you are using a paper menu, have you considered a test of moving to a online menu many options available in the market. Today 1.4 dealership visits Yesterday 4+ Make Your F&I More Relevant to Customers Sooner in the Process!

42 Appendix