The fundamentals of F&I haven’t changed a lot over the years. 

F&I managers still need to have a high degree of emotional intelligence, enabling them to read customers quickly. They need to have sales skills and be excellent administrators, product-knowledge experts, strong communicators, and so on. 

Much of F&I training over the years has included word tracks, closes and step-selling with a feature-advantage-benefit approach to each product offered. Although there are some enlightened F&I managers who have adopted a more consultative and personalized approach to F&I, unfortunately many F&I managers still offer the same menu to every customer on each transaction. 

What has changed over the years are the customers we interact with every day. It may be time for us to understand that the boomers for which much of the training out there was created for are no longer the largest group of consumers we deal with every day. That distinction goes to millennials and Generation Z. Together, they make up the largest group of consumers in the U.S. at approximately 136 million strong. 

Understanding the buying habits of this economic powerhouse may cause you to change your approach and process in F&I. This group has some key buying characteristics that can benefit F&I if we pay attention and adjust our approach and process to accommodate them. The following are a few key characteristics I want to share and how they apply to us in F&I.

1. They value experiences over possessions – This means they like to travel, and having a reliable vehicle to travel in will resonate.

2. They are more comfortable shopping online – They are looking for convenience and options. F&I managers and dealers who win with this group will have information on their websites about the products we offer in F&I so the buyer can review and consider them before coming into the dealership. Nothing too complicated, or it comes off as a pitch; just what the product is, what it does, and how they can decide if it is right for them. Terms and pricing are not needed. Research tells us they would prefer to get that information from an expert – the F&I manager. It also tells us they like to buy! We just need to make it easier to do so. 

3. They are budget-conscious – They like to spend, but they want value for their money. Taking the time to understand their lifestyle and how they will live in and use their vehicle can help you personalize the benefits of the products you offer to them. Mentioning how the products we offer can protect their budget is a must.

4. Convenience is key – In the past we have talked about peace of mind as being the No. 1 benefit of the products we offer. With this group it should be about convenient and hassle-free vehicle ownership. Talking about how owning the coverage can help to ensure an uninterrupted lifestyle will resonate when talking with them about the products they are interested in.

5. Buy now, pay later – They are frequent users of services that allow them to do this. Letting them know the total amount for the product and then breaking it out into a monthly amount for the coverage works with this group. Don’t focus just on the total monthly payment; break it down for them. Also, if you have a program that offers a zero percent financing option for products outside of the loan, don’t hesitate to present it. 

6. They want to be known – The more you can learn about this customer prior to initially talking to them, the better. Using all the resources at your disposal to learn as much as you can about the customer prior to presenting a menu and then having the ability to personalize the benefits to his or her life will pay dividends in value creation. They also like to be invited into a sales process, not be subjected to one. Get them involved, explain what you are doing and why. Ask their opinion, and give them options. 

You wouldn’t be a good F&I manager if you couldn’t sell. To be a great F&I manager let this group buy before you sell.

John Tabar serves as executive director of training for Brown & Brown.