Advancing F&I opportunities through connected auto retailing
What is connected auto retailing
for F&I?
Digital retailing is not an unfamiliar concept – in fact, many dealerships have been selling cars online for several years. However, many dealerships have yet to achieve a fully connected auto retailing experience that can seamlessly transition between digital and in-store shopping to create a more streamlined, personalized experience for customers.
How does this work with the F&I process? Connected auto retail solutions allow the finance team to:
- Process more loan applications in less time
- Automate the lending experience
- Customize deal structures more effectively
- Secure real-time approvals
- Present more upsell opportunities
- Improve lender relationships
- Identify the best lenders for each customer
Address shopper pain points to maximize F&I opportunities
One of the most frustrating parts of the car-buying experience for customers also happens to be one of the largest upsell opportunities for dealerships – F&I. Traditionally, F&I managers have to sit down with individual car shoppers, walk them through every available loan and rate they qualify for and then review the dealership’s F&I products. This can be confusing and time-consuming for the customer, leaving little or no room for upselling an extended warranty or GAP insurance. In fact, 60% felt that negotiating with the salesperson and the post-purchase paperwork were their least-favorite parts of the vehicle purchase process.2
However, introducing connected auto retailing changes that by creating a more customer-friendly experience, while providing more upsell opportunities for dealers.
Convenience
Once customers have found the car they want to finance, their main focus is getting on the road, not speaking with the F&I manager. Upstart’s connected auto retailing solutions give customers the opportunity to submit their loan application directly from their smartphone while they wait. They can even submit the application and all necessary documentation from home before visiting the dealership.
The F&I manager will have access to their information through the platform and can begin identifying appropriate lenders and options ahead of time. Dealers can even automate the lending experience to send their customers’ completed applications to their preferred lenders, streamlining the process at the dealership while also improving lender relationships.
Speed
Upstart Auto Retail provides customers with real-time approvals.3 Since dealers can automate the process to send applications to their preferred lenders, customers immediately see whether they’ve been approved based on the parameters of their loan.
Customers will know before they sit down with the F&I manager whether or not they qualify for a loan, saving them time on financing and freeing up the sales team to focus on selling additional products or working with other customers.
Transparency
According to the 2022 Car Buying Outlook from Capital One, only 19 percent of car shoppers consider the car-buying process to be transparent.4 Additionally, 77 percent of car buyers said that dealerships should provide more pricing and financing information upfront.5
With Upstart Auto Retail’s connected auto retailing solutions, customers can use the online platform to explore financing options for the vehicles they’re interested in before they visit the dealership.
The F&I manager can also use these solutions to create deals side-by-side with customers so that their deal structures are more personalized. By giving the customer more control over building their loan, they’ll feel more as if they’re in the driver’s seat.
Grow PVR using AI-powered financing
Connected auto retailing solutions—like those from Upstart Auto Retail—provide AI-powered financing tools that identified the lowest rate available to buyers in 74 percent of decisions for Del Grande Dealer Group.6 Coming in with the lowest rate gives buyers more purchasing power.
When a large dealer group in California saw higher transaction values on vehicles, they grew their PVR with up to three percent reserve rates and 185 percent loan-to-value with no backend.7 In other words, they were able to loan buyers more money with lower interest rates, increasing the likelihood of upselling a customer on a higher trim level or an additional feature.
Advance F&I opportunities with Upstart Auto Retail
Upstart Auto Retail offers connected auto retailing tools and solutions that can advance the dealership’s F&I opportunities. By addressing car-shopper pain points and making the process easier for all parties involved, it creates a fast, convenient, and user-friendly way for both the shopper and the F&I team to build a customized deal.
Connected auto retailing can help you advance the dealership’s F&I opportunities to ensure they are maximizing profitability, while also improving customer experience. Contact Upstart Auto Retail to find out how.
Want to see what Upstart Auto Retail can do for you?
2 https://caredge.com/blog/caredge-car-shopper-study
3 https://www.upstart.com/dealers/how-it-works/real-time-approvals/&sa=D&source=docs&ust=1682350349737488&usg=AOvVaw0XTrVPuurXKN6Oxa8xl112
4 https://www.capitalone.com/about/newsroom/car-buying-outlook-deep-dive/
5 Ibid.
6 https://www.upstart.com/dealers/infographics/the-top-6-benefits-of-ai-powered-financing-for-car-dealers/
7 https://www.upstart.com/dealers/case-studies/del-grande-dealer-group-success-story/&sa=D&source=docs&ust=1682350090323258&usg=AOvVaw2FDJSQfYQGnRWWA8dBEfUf