By now, most of us are familiar with digital retailing. From the tactics of online shopping and negotiating tools to the strategic way it starts, sustains, and grows sales relationships, digital retailing is an evolution in the way cars are bought and sold, one with roots equally distributed between online and showroom retail workflows.
Now those roots are extending into the F&I office. According to a recent post in Auto Remarketing, Kelley Blue Book senior analyst Alec Gutierrez is quoted as having seen improvement in F&I and extended warranty penetration from dealers that provide “more transparent pricing online, where they’re providing actual pricing to market to consumers.” In essence, as the buying and negotiating experience becomes more efficient, buyers may be more receptive to F&I products such as extended warranties. It’s an interesting post that adds keen insight into how process efficiencies change the consumer mindset. It also aligns with key findings from last year’s study, commissioned by MakeMyDeal:
- 83 percent of those surveyed are interested in learning about F&I products before entering the dealership
- 63 percent would be more likely to buy F&I products if they could learn about them on their own time, before finalizing their vehicle purchase.
There’s no mistaking that technology solutions like digital retailing, compliance and menu selling are changing the nature of car buying. What’s interesting – and especially relevant with this post – are all the ways these solutions create opportunities for dealers. Click here to read the Auto Remarketing post.