WAYNE, Pa. — A new e-Book from MaximTrak Technologies finds that F&I managers who use its eMenu technology can boost product penetration to increase profitability on every vehicle sold.
The e-Book includes results from a nationwide study that was sponsored by a major domestic manufacturer. It finds that dealerships like Monroe Dodge-Chrysler-Jeep-Ram achieved a 33 percent increase in average profit per vehicle retailed after adopting eMenu technology from MaximTrak. “That’s huge money,” said Ralph Mahalak Jr., dealer principal.
The study, “How Cloud Based F&I Menu Systems Boost Service Contract Penetration 33 percent and PVR 27,” also found that dealers using this cloud-based application complete deals quicker. “We undertook this study to verify that eMenu utilization, when compared to using no menu system, can dramatically boost a dealerships’ F&I profitability,” said Jim Maxim, Jr., President of MaximTrak Technologies.
“The dealers in this study report new-car vehicle service contract penetration lifts of 32 percent and used-car VSC lifts of 33 percent — and they also had new-car PVR and used-car PVR boosts of $302 and $203, respectively, using the MaximTrak application versus not using the MaximTrak process,” Maxim said.
Dealers in this study said menu software helps them observe and manage for peak outcomes.
Monroe Dodge’s Mahalak said the F&I menu tool helps his staff focus on presenting solutions and not on the menu process itself. “We actually offer fewer products on the menu now, so more time is available to spend on what we sell best,” he noted. “And built-in reporting tools give us daily insight to what our finance managers are accomplishing for the week, month and year-to-date, which helps with accountability.”
This sort of structured menu presentation also keeps customers happier by making the F&I process more efficient for them.
Another dealer who participated in the study, Fred Barabani, F&I manager for Buckeye Chrysler-Jeep-Dodge-Ram, added, “We’re shaving off minutes from every F&I presentation, and for customers who don’t want to be in the finance office in the first place, those 10 or 15 minutes are significant to the customer.”