The 2013 F&I Industry Summit

Every year when the F&I Industry Summit rolls around Jerry O’Neill cringes. I can hear the adding machine tape rolling as he calculates the cost of the plane fare, the ticket to the conference, the extras that always get thrown in and the inevitable drinks with our vendors and contacts. But he also calculates what it could cost to send me to some of the classes that the Association of F&I Professionals offer, or to have a one on one session with the attorneys of the prestigious Hudson Cook Law Firm or NADA Executive Vice President and General counsel, Andrew Koblenz, or to fly out to some of our vendors offices in Texas or Chicago just to get a look at the newest F&I products and tools. When the math is done, Jeram Marketing is definitely in the black, as well as in the know. There is simply no more cost effective way to stay updated and on top of this ever-changing business in which we work. While this year’s conference was especially helpful with understanding the CFPB and their position on indirect financing, it was also filled with panels and seminars whose sole purpose is to help us all get better at our jobs. Charlie Robinson, President and COO of Resource Automotive Group kicked off the conference with a keynote address on what he has learned over the last 40 years in the automobile business. Much of what he had to say were points that we already know, but some were ideas that we may not have thought about for a while. Foremost is to focus on the end user—the customer. If there is value for the customer, profit for the dealership will follow. Next is recruiting the right person for the F&I position and training, training, training—it’s a process not an event. He even mentioned the “P” word—Pay plans—and that they should be motivational, market driven, and should include both product sales and total dollars generated. He believes there should be rate caps, product price caps, and a fully executed menu in every deal jacket. Measurement should also include having focus meetings, setting goals, making comparisons with others in your 20 group, and lender relationships. So far, nothing really new or visionary, right? Then Mr. Robinson went on to talk about some of the less tangible characteristics that he has learned to value over the last 40 years such as: Being sincere and transparent, hardworking, egoless but confident, treating people with respect, doing what you say you will. He asked, “Are you fun to be around?” and, “Do people want to be with you?” Finally, he talked about compliance and how we all need to improve our understanding and knowledge of The Dodd-Frank Act, ECOA, Reg. B, Averse Actions, FCRA, Use of Credit Reports, Red Flag, Graham Leech Bliley, Reg. Z and M, and CFPB, just to name a few. Before he closed Mr. Robinson outlined his take on the 10 Keys to Success:

1. A good attitude is foremost 2. Make your career fun or the most you can expect to be is the best of the worst 3. Continue training and improving your weakest areas 4. Do what is right, which often isn’t the same as what is easy 5. Set your sites high, set your goals high, then do what it takes to achieve them 6. Be dedicated and committed 7. Organize and reorganize 8. Be fair and honest—it gets you respect 9. Empathize and sympathize 10. Treat whomever you are with as the most important person at that time

So that set the scene for the conference and the rest of it did not disappoint. Probably the most attended session was the one titled, Dodd-Frank and the F&I Grey Zone. The panel was composed of Andrew Koblenz, NADA General Counsel, Nicole Munro, attorney for the law firm of Hudson-Cook, David Robinson, Association of F&I Professionals, Terry O’Loughlin, Reynolds and Reynolds, and Damon Wiener, Safeguard. Given the concerns and recent coverage of the CFPB and their possible effect on our business, the turnout was not surprising. Please see the next page of this newsletter for a more in-depth article on this panel discussion, as well as a more recent article on how the lenders are pressing you, the dealers, to prove your loan practices. Suffice it to say that the general consensus is that finance reserve will change and probably not for the better. So have a fully executed menu, sharpen your product selling skills, and make sure the customer knows what they did and did not purchase. Here, too, the conference was a success as several of the top national F&I trainers spoke on just that subject. All agreed that the menu and the interview are still the best methods of diffusing a customer’s concern so they are open to hear the advantages of your products. Page 3 details some new ideas that may help you refresh and reenergize your presentation. Technology was a big part of this year’s conference, with the emphasis on the need to have something for everyone. F&I managers will need to have a traditional paper menu for your more traditional customers, but should also consider a menu on your dealership’s website for those customers who buy on line, as well as an iPad based presentation that literally puts the sale in the hands of the customer. This would be welcomed by the Gen X/Y customers but could be confusing and considered cold by some of your older buyers. In other words, the technology is out there, you need to be familiar with it and see how it can fit into your customer base. If this brief snapshot of information has peaked your interest in attending next year’s F&I Industry Summit, it will be held in Las Vegas again, September 8th—10th, 2014. We’d love to see you there!

Nancie Pajan Director of Training