CFR, Incorporated -
Complete Finance Resource, Colorado

Self Evaluation

Want to test your F&I knowledge quickly and anonymously?
Most people take less than six minutes to complete this simple self evaluation.

There are no obligations, and you remain anonymous.

Answer the following sales and F&I (Finance & Insurance) related questions in the manner that best describes yourself or your dealership. Be sure to check your score at the bottom!

1. How well can you interpret the information available on consumer credit reports?

You don’t pull credit reports.
You have access to at least one credit report and understand scoring, but do not clearly understand the factors that contribute to the score.
You have access to multiple reports and have a reasonable understanding of most of the factors that contribute to the score.
With a good credit application and a credit report or two, you have complete understanding of a deal. You are able to re-hash a deal with the lender with out using the word “score”.

2. On average, of every 10 units sold how many are financed through your dealership?

Zero to 3
3 to 5
5 to 7
More than 7

3. Of the following, how many can you calculate accurately (where applicable) and/or posses a reasonable working knowledge? DTI; LTV; PTI; Revolving Usage; Graham-Leach- Bliley Act; Magnuson-Moss Act; TILA / Regulation Z; ECOA / Regulation B; IRS cash reporting rule / Form 8300.

None
Some
Most
All of them

4. On average, of every 10 units sold how many extended service contracts are sold?

zero
1 to 3
4 to 6
7 or more (You’re only surprised when they don’t buy.)

5. What percentage of your customers are offered an extended service contract.

zero to 59%
60% to 79%
80% to 99%
100%

6. How many closes do you know and use to overcome customer objections to buying an extended service contract during your presentation?

zero
1 or 2
3 or 4
5 or more

7. How many different F&I products or services do you have available to enhance profitability? (Products or services such as financing, extended service contract, GAP, Anti-theft, etc. each count as one. Do not include items such as accessories, parts, or apparel.)

1
2
3 or 4
5 or more

8. On 10 average unit sales, what is your total profit solely from F&I related items such as finance participation, service contracts, anti-theft, GAP, etc.? (This figure does not include profit from the sale of items such as accessories, parts, or apparel.)

zero to $2500
$2501 to $5500
$5501 to 8500
$8501 or more

9. On average, what percentage of your total monthly F&I income is derived from finance participation? (Finance participation is paid by the lender for increasing the customer rate.)

Example: $2,000 participation income

+ $8,000 product income (From the sale of service contracts, GAP, etc.
=$10,000 total F&I income Do not include accessories, parts, or apparel.)

In this example, 20% of the total F&I income is derived from participation.

Hint: If you earn participation, but don’t sell any F&I products, the answer is A. (If you don’t generate any F&I income, skip and go on to question 5.)

80% to 100%
51% to 80%
36% to 50%
35% or less, most of our profit is consistently generated from product sales.

10. How many of the following do you currently track at your dealership?
(Generally recorded on the sales or F&I log as sales are made.)

Finance Penetration
Participation income
Participation as a percentage of total finance income
Extended Service Contract and other product income
Extended Service Contract and other product penetrations
Individual product income as a percentage of total finance income
Total F&I income as a percentage of total sales income
Average total F&I income per deal

None
Some
Most
All of them

11. How many books, video’s, seminars or other sales related training materials have you read, watched, or participated in over the last 12 months?

Zero
1
2 or 3
4 or more

Your Score

Score potential ranges from zero to 1001, the higher the better. How did you do?

It’s not scientific, but we’ve noticed that often your score approximates your average F&I profit per sale. (The more you learn, the more you earn!)

With this in mind, if you scored over 700 you’ve probably already figured out that F&I income is an important part of your business. If you scored well, you’re also likely to be interested in learning to do even better. We’re always impressed with the number of top performers that make it to class looking for ways to sharpen the axe.

Give us a call and we’ll see if we can help you tweak your game.

If you didn’t score so well, don’t be discouraged. It’s never too late to improve. The idea that there is as much as $1000 or more in additional profit per unit sold should be interesting. Assuming you’re going to continue to sell, why not learn to maximize your profit opportunity?

Especially when you consider the idea that the products generating the profit also promote happier long term customer relationships, which in turn lead to more repeat and referral sales.

Of course there is also the benefit of additional sales, both through better understanding of consumer credit and lender resources, and the increased flexibility in deal structure. (Many a deal has been made by shaving a few dollars from the sale and making it up in spades at the finance table.)

More good news…You can do this anywhere. There is nothing special about your local economy, weather, or drinking water that makes your customers “different”. The only real variable is your selling skill.

How much would an extra $500 per unit have added to your bottom line last month? Last year? Next month is coming. Will you be ready?

By recognizing the opportunity, you’ve just taken the first step toward learning to improve your profitability. The next step is up to you.

Give us a call and we’ll help you get into the game.

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“Fill your head with knowledge, and your head will fill your purse.”

~Benjamin Franklin - America’s first self made millionaire~

Questions?

That's what we're here for! Please contact us.