Learn from the leaders in F&I: A Panel Discussion Moderated by David Parker F&I is how you make the money. Compliance is how you keep it. Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Finance Department Best Practices Jared Zimlin – Priority One F&I = Sales Position not clerical – Selling & Reassuring Customer – Selling Underwriters Why they should buy the deal Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

F&I Menu The best way to present to all customers every time –Sign to decline – 100% T/O = Most $ – 3 x 100! Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Reserve Initial Interview How much above buy rate do you start with? How do you ask for it? Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Gap / Credit Life / Disability Insurance What is it? Who should buy them? How do you ask for it? Sign to Decline Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Extended Warranty How do you ask for it? Sign to Decline Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Tire & Wheel Coverage Presented on the Menu Similar to AAA – Except covers the tires and wheels Often offered through Extended Warranty companies Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Prep the Customer for T/O to Business Mgr. Bring up the topic of financing Cash or Finance? Mention a product or two… Introduce the Business Mgr. Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Know Your Lender Limits Some will advance 120% plus extras – Tax, Reg., After Market Products Some = 130% of advance all inclusive Can be $3,000 to $5,000 + / deal for after market products Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Document Fee & After Market Products Mark Vanlente – Action Water Sports Different names – - Doc Fee / Admin Fee, etc. What is a reasonable charge? Some states limit the amount Many states – charge to one customer, must charge to all Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Document Fee & After Market Products Make the Doc Fee Non-Negotiable Preprint Doc Fee on sales order Charge the same $...cash or finance Many states = taxable Charge for freight and prep instead? How do you explain what it is for? Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

After Marker Products Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m. Retail Insurance Better Coverage… Stated/Agreed Value vs. Market Value Bind Coverage on Weekends Marketing Fee Paid on each referral?

Aftermarket Products Pre-paid service (Provided In-House) – Bundle 2-3 Seasons Maintenance/Storage – 50/100/150 Hour service included – Discount 20% to 30% for prepayment –Worry Free Boating for 2-3 seasons Fiberglass & Vinyl / Upholstery – Many sell for $1,499 cost installed $450 =$1,000 + profit Any other products??? Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Subprime Credit Risks Glynn Cooper – Marine One Acceptance How is it different from A & B Risks? – Indirect Paper Only – Max Loan/Term – Recent Bankruptcies – Reserve Paid? – Avg Credit Score? – Non-Recourse Loans? Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Credit Application Best Practices Credit Application – More information - Quicker approval – Written Authorization – Minimize Access – Keep it Secured Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Credit Application Best Practices Credit Application – Written Security Procedures w Chain of Authority – Written Procedures for Storage – Ignorance of rules opens mgmt to Personal Liability! Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues Len Bellavia – Bellavia & Gentile …Compliance is how you keep it! Privacy Act – 2 Components 1.Privacy Notices -Dealership policy – How their private info is collected, stored and protected -Includes SSN and DL #s 2.Safeguarding information -What you need to know & do Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues …Compliance is how you keep it! 2. Safeguarding information – Must be secured at ALL times – Designated person to pull Credit Bureaus – Keep credit apps for two years – Proper disposal of documents – Shred or Burn – Penalty for Non-Compliance = $11,000! Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues OFAC Check List Office of Foreign Asset Control = Terrorist Watch List Keep a copy of Drivers License and OFAC Clearance in each deal folder Penalties for non-compliance – $5m fine & 30 years in prison Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues Red Flags – Written Manual – Compliance Officer in dealership – Red flags check – copy in deal folder – Max civil penalty = $3,500 per violation – Medco, FPC are sources – OFFAC & Red Flags Checks Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues Patriot Act – 3 Provisions 1. Cash Reporting – Form 8300 – $10,000+ collected in cash – Includes cashiers and bank checks – Does not include personal checks Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues Patriot Act – 3 Provisions 2. Adverse Action Notices - Circumstances when a dealer is required to provide… 3. Notations on Credit Report - Must call customer Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues Fair Credit Reporting Act (FCRA) Requirements: 1.Risk Based Pricing Notice 2.Credit Score Disclosure 3.Keep all credit applications 24 months 4.Penalties – - $100 to $2,500/infraction Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues Truth in Lending Act (TILA)Regulation Z Accurate Marketing Disclosure of – Down payment, terms & APR% Trigger Terms: – Down Payment – Interest Rate or Term Penalties – Up to $5,000 fines + up to 1 yr in prison Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues Electronic Security Enterprise level Firewalls Intrusion Detection System (IDS) Backups daily Employee access restricted Complex passwords – changed often Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Compliance Issues Electronic Security Lock file and server room New Login required if no keyboard activity Background checks on all employees Cross shred all sensitive documents filtering for personal info – SSNs Do not credit apps or contracts Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Summary F&I is how you make the money, compliance is how you keep it Ways to increase Income – F&I Menu – Reserve – Doc Fees - $ / deal – Subprime Lenders – GAP/ Credit Life/ Disability Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Summary F&I is how you make the money, compliance is how you keep it Ways to increase Income – After Market Products Extended Warranty Tire & Wheel Retail Insurance referrals Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Summary F&I is how you make the money, compliance is how you keep it Ways to increase Income – contd – After Market Products Fiberglass / Upholstery Protections +$1,000/deal Prepaid Service Sign to Decline Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Summary F&I is how you make the money, Compliance is how you keep it Procedures for Compliance – Credit Applications – Safeguarding Information – OFAC and Red Flags Check Lists – Form 8300 – $10,000 Cash Rule Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

Summary F&I is how you make the money, Compliance is how you keep it Procedures for Compliance – Fair Credit Reporting Act Risked based pricing notice Credit score disclosure notice – Regulation Z – Payment Disclosures Trigger Terms – Down Pmt, Rate, Term – Electronic Security – Firewalls, PWs, etc. Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.

F&I Panel Questions? Learn from the leaders in F&I Moderated by David Parker Tuesday, Nov p.m.