EFG Companies recognized independent stores that turn about 50 vehicles monthly need the same F&I resources as franchised stores that watch two, three or four times that many units roll over the curb each month. It’s why the company announced the launch of its virtual F&I model, Simplicity Finance and Insurance.

With Simplicity Finance and Insurance, EFG Companies highlighted on Tuesday that dealers can expect to generate upwards of more than $1,000 per retailed unit, get more paper bought, increase product penetration, and make F&I compliance a non-issue.

Mark Rappaport, president of EFG’s Simplicity Division, acknowledged many independents and dealers struggle to generate F&I profit with inventory that does not meet finance company requirements, limited financing options, little investment in F&I training in a high-turnover industry, and inconsistent day-to-day staffing.

“As you know, the employees and teams at the independent dealerships have to wear a number of hats. Wearing all of those hats sometimes doesn’t make you the most effective in all the facets tied to running an automotive dealership,” Rappaport said during a phone conversation with SubPrime Auto Finance News.

“Often we found, on the independent side, it’s the salespeople handling the F&I business and often the salespeople are really good at sales but don’t have the time, ability or expertise and background to be able to support the F&I process, where a franchised dealership would have the significant bench strength to be able to do that,” he continued.

“At the independent level, when you’re doing 25, 50, 75 units a month, it becomes a little more difficult to support that from a resource standpoint and get the bench depth to make it in a profitable and functional manner,” Rappaport went on to say. “We decided there was an opportunity here to help support our dealers at the independent level to provide them with a service that offers them access to the bench strength on retail operational hours basis and gives them the ability to be sure we’re doing everything compliant and we’re doing it in the most effective format to add more profit to their back end.”

EFG Companies has developed a way to leap-frog over these issues without adding a single F&I person to staff. Simplicity Finance and Insurance can give dealers instant F&I expertise and improves the customer experience, while increasing F&I profits.

This virtual F&I model can enable dealers to focus on the front-end process, while a team of expert F&I personnel take care of the finance process from EFG’s headquarters, streaming live into the dealership. EFG’s professionals handle the financing, deal structure, product sales, contracting and funding to drive back-end profit on each vehicle sale.

Rappaport explained that all the independent dealer needs is a private room with high-speed dedicated Internet access to get started. An EFG representative will come to the store, set up the equipment and provide multiple days of training. Within a short timeframe, the store can be finalizing deliveries with Simplicity Finance and Insurance.

According to AutoTrader, the average time spent in the F&I process is 61 minutes. However, the average consumer wants that time cut in half. With Simplicity Finance and Insurance, the F&I process takes just over 30 minutes. In a national research study, 1,000 consumers said the following with regard to the Simplicity virtual F&I model:

• 68 percent of those between the ages of 18 and 44, and 61 percent of those between the ages of 45 and 60, were interested in going through the virtual F&I process.

• 71 percent of those between the ages of 18 and 44, and 57 percent of those between the ages of 45 and 60, believe virtual F&I could increase their customer satisfaction.

• 64 percent of those between the ages of 18 and 44, and 56 percent of those between the ages of 45 and 60, would feel less pressured and more open to learn about F&I products.

“The dealers who have seen this in action are most excited about the ability to use decades of experience, giving them the best opportunity to close all customer types and maximize their back-end profit,” Rappaport said. “They are also extremely interested in how Simplicity Finance and Insurance can enable them to better develop their inventory and lender mix for a greater opportunity for back-end product sales.”

John Pappanastos, president and chief executive officer of EFG Companies, reiterated the points in a news release, stating: “We developed Simplicity Finance and Insurance to enable these dealers to evolve the F&I process from a basic transaction to a highly-lucrative profit center that enhances the consumer experience.”

To learn more about Simplicity Finance and Insurance, watch the video at the top of this page or here as well as by visiting www.efgcompanies.com.