1. Successful F&I In Your Dealership

2. AGENDA
• Brazil Culture/American Culture • A Cultura Brasileira/ A Cultura
Americana
• History of F&I in the U.S. • A História do F&I Nos EUA
• Opportunity in F&I is as big as the • A Oportunidade em F & I é
Blue Sky ilimitada
• Change • Mudança
• F&I and the Dealership • O F&I e a Concessionária
• Implementation • Implementação
• Q&A • Perguntas e Repostas

3. PRESENTERS
• Jim McDavid
• Founder/CEO/VP
• The McDavid Group
• MobiDrives
• Rocky Top Chrysler Dodge Jeep
• Mario Murgado
• Owner
• Brickell Motors - Miami, FL
• J.R. Caporal
• CEO/Owner
• MegaDealer Network Development
• Compre Já Seminovos

4. BRAZIL CULTURE X
A CULTURA AMERICANA
A Cultura Brasileira A Cultura Americana

5. BRAZIL CULTURE
X A CULTURA AMERICANA

6. BRAZIL CULTURE X
A CULTURA AMERICANA
Although we pursue the common financial
goals, there are a number of differences in how
we approach our business models.
• Credit submission/approval & spot delivery
• Fixed Operations
• Demonstrators
• The delivery

8. BRAZIL CULTURE A CULTURA
AMERICANA
Although we pursue the common financial
goals, there are a number of differences in how
we approach our business models.
• Credit submission/approval & spot delivery
• Fixed Operations
• Demonstrators
• The delivery
• And YES, F&I Process

9. Customer Dynamics: Auto Retail 3.0
Retail Evolution is Accelerating
Retail 1.0 Retail 2.0 Retail 3.0
The first 110 years 1995 to 2007 2008 to…
• Relative retail process § Internet comes to retail; § iPhones, Smartphones and
stasis; Customers widely adopted by shoppers Apps create fast, mobile
tended to shop closest knowledge creates greater
dealer § Shift in power from the transparency
• Experience dominated dealership to customers
by the dealer § Social media furthers
customer power in
shopping
JD Powers
AND ASSOCIATES
9

10. HISTORY of F&I in U.S.

11. A CULTURA AMERICANA
F&I Then
• Began in early 60’s*
• One or two products
• 12 month factory
warranty
• Limited connectivity to
gain access to credit
ratings for approval
• Paperwork was time
consuming

12. A CULTURA AMERICANA
F&I Now
• Many products/insurance
• Dealers tailor offerings
• Average factory warranty is
36/36
• Some factory warranty cover
60/60
• Many systems to integrate
lenders
• Paperwork completed in minutes
(Printing)

13. A CULTURA AMERICANA
F&I Now
• 50 Years of trial and error
• F&I Methods have
evolved
• F&I Products are driven
to engage and protect the
customers
• The “sell at all cost”
mentality has given way
to “retain the customer”

14. OPPORTUNITY IN F&I
• Financial Impact
• Sales Process + F&I Process = Customer Satisfaction
• Customer Satisfaction = Customer Retention
DSB
YTD
%
2011%
AVG.
PRU
2011
P/Totals
2011
I/Totals
2012
Goals
2012
Goals
2012
P/Goals
Extended
Warranty
52%
44%
$510
740
$377,644
55%
$505,226
990
Maintenance
3%
5%
$195
76
$14,873
10%
$35,226
180
GAP
26%
26%
$415
339
$140,820
35%
$261,702
630
PVR
$1,100
$981
$981.
$1,161
Units
Sold
N/U
309
1672
1672
1800
F&I
Income
$339,988
$1,640,273
$1,640,273
$2,090,511

15. OPPORTUNITY IN F&I
• Controlling the Customer
• Controlling the Sale
• Retention Products
• And YES, Making Money

18. CHANGE
• Leveraging the U.S. Experience Into the Brazilian Culture
• The “Right Change” is “Good Change”
• Change requires Dealer Commitment
• Change requires Perseverance
• Everyone must see the ‘The Win’ in change
• Customers
• Salesman
• Managers
• Dealer

19. F&I and the Dealership
• Sales – F&I – Service
• The Art of ‘Controlling the Customer’
• Maximizing Dealership Income
• F&I Process
• One stop shop
• Products should benefit both the customer and the dealer
• Provide products that bring value to the customer
• Provide products that drive the customer back to the dealership for their servicing
needs
• The importance of Pay Plans & Incentives

20. Implementation
How do you Implement a successful F&I department in
your dealership?
• Starts with ‘Dealer Commitment’
• Management Buy-In
• Right People – Right Position – Right Process
• Benchmarking
• Training and Ongoing Support
• Setting a defined Time-Line (30 -60 -90 days)
• Inspect What You Expect
• Did I mention ‘DEALER COMMITMENT’

21. RECAP
Successful F&I in your dealership
Implementing a successful F&I Department
provides immediate:
• Impact on Gross & Net Profit
• Long-Term Customer retention
• Additional Service Traffic
• Improved Customer Satisfaction
• Control of your customer

22. Q&A PANEL
• Jim McDavid - Founder / CEO
The McDavid Group and MobiDrives
Rocky Top Chrysler Jeep Dodge
• Mario Murgado – Owner
Brickell Honda, Buick and GMC
• J.R. Caporal – CEO
MegaDealer Network Development
• Jorge Moas – CEO
Moas Automotive Consulting
• John Leaver – EVP/COO
The McDavid Group and MobiDrives

23. THANK YOU