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At LotPop, one of our guiding principles has always been “dealers first.” That’s not just a slogan—it’s why LotTalk exists. And in Episode 18, the team hit on a hard truth many used car dealers are quietly struggling with: the F&I department is too often underused, undertrained, or overlooked entirely.
As margins tighten on the front end, dealers must get more strategic about capturing gross on the back end. That means maximizing every opportunity in finance and insurance (F&I). But too often, that opportunity is squandered—not because the market isn’t there, but because the process isn’t.
Stop Sending Wholesale to the Auction Too Soon
A key takeaway from this episode is the importance of giving vehicles a real shot at retail before pushing them to auction. Co-host John Anderson made a strong case for pricing vehicles at a “wholesale-to-retail” level and tracking the metrics—leads, page views, and engagement—to see if customers bite. And if they do? That’s a chance for your F&I team to step up and turn a potential loser into a profitable deal.
Late-model vehicles in particular come with opportunities beyond the front-end gross—trade-ins, service business, parts sales, and of course, finance products. But only if you keep them in the game long enough.
If You Don’t Train Them, You Can’t Blame Them
Renaldo Leonard drove home a simple but powerful message: “If you don’t train them, you can’t blame them.” With all the headwinds dealers are facing—tariffs, tax changes, and shifts in shopper behavior—there’s no excuse for an untrained F&I team.
Weekly F&I training should be the standard, not the exception. From presenting value-added products to tailoring finance packages, today’s F&I professionals need to be agile, informed, and involved from the start—not just at the end of the deal.
Introduce F&I Early in the Process
One of the more practical tips from the podcast? Get F&I involved before the deal is even penciled. A warm handoff after the test drive. A walk through the F&I lounge. A basic conversation about vehicle protection options. These small touches build familiarity and trust—so when it’s time to sit down and talk coverage, customers are more open and informed.
If your sales team is flipping keys and sending customers out solo on test drives, or if you’re introducing F&I only after the deal is done, you’re missing opportunities to build value and increase penetration rates.
Know the Numbers That Matter
Anderson and Keen broke it down clearly: if you’re managing a dealership and don’t know your F&I penetration rate, PFU (per finance unit), and PRU (per retail unit), you’re flying blind. These aren’t just nice-to-haves—they’re essential to making smart decisions about pricing, vehicle lifecycle, and how to structure every deal for maximum profitability.
The issue is clear: with the shopper index declining and retail days-to-turn increasing, every dealership needs to shift from reactive to proactive. That starts with treating F&I not as an afterthought, but as a profit center—one that’s involved early, trained often, and tracked religiously.
If your F&I process feels like an after-hours mystery instead of a revenue driver, it’s time to course-correct. Your margin depends on it.