FI showroom red and grey logo
MenuMENU
SearchSEARCH

The Silent Killer

It's hard to gauge success in special finance without measuring your sales figures or marketing ROI. Check your dealership's vital signs before it's too late.

by Bob Blackburn
August 1, 2008
3 min to read


The American Heart Association reports the following: “According to recent estimates, nearly one in three U.S. adults has high blood pressure, but because there are no symptoms, nearly one-third of these people don’t know they have it. In fact, many people have high blood pressure for years without knowing it. Uncontrolled high blood pressure can lead to stroke, heart attack, heart failure or kidney failure. This is why high blood pressure is often called the ‘silent killer.’”

To head off high blood pressure, you visit the doctor regularly to keep track of your weight, heart rate, cholesterol levels — basically, all the vital signs that can warn you when the silent killer is creeping up. As with your own body, you can keep your dealership healthy by paying attention to the vital signs and being proactive about it.

Ad Loading...

Performing a checkup

If it’s been awhile since your dealership’s last physical exam, let’s start with the two most basic vital signs: sales figures and return on investment (ROI):

1. Sales figures. The most obvious problem vital sign is declining numbers of sold units. Lately, this is almost epidemic in dealerships. Declining gross profits per unit accompany declining sales. Why? Dealerships look to move more units at any cost in an effort to reduce inventories. Manufacturers throw incentives and rebates on slow-moving units to help dealers feel better. Like a short-term diet, you will see no real results from this approach. (Will my blood pressure go down if I eat bran once in awhile?)

Dealers who survive and thrive in down times know how to adapt to a changing market. They proactively approach tough times. “Reactive” dealers reduce advertising expenditures investing their advertising dollars with cheaper sources. They may eliminate advertising altogether, assuming they’ll sell the same number of units whether they advertise or not. (Will my blood pressure go down if I don’t start exercising or change my diet?)

2. Return on investment. In tough times, when dollars are short, spending money haphazardly is foolish. Most of us look at each purchase we make to ensure we get the most for our money. Marketing efforts for dealerships are no different. You have to get the biggest return on investment, or ROI, for your advertising dollars.

Ad Loading...

I recently met with a dealer client who wanted to know how many leads our direct-mail campaign was producing. He suspected that not enough “bodies walked through the door” to justify the money he was spending. But when I asked how many of the customers who did respond to our mailing bought cars, and how much profit he made on those sales, he didn’t know. For some reason, he only cared about the number of leads. He wanted to calculate his ROI, but he was missing a major part of the equation. (Does knowing my blood pressure mean I control it?)

Getting healthy

As it turned out, the dealer in the example above was enjoying a tremendous response rate, one of the highest we had ever seen. Yet the return on investment was a mystery to him. A more proactive dealer would have known not only how much the campaign cost, but how much profit it produced. He would have known how many units were sold and the average gross profit generated. These are the most important statistics available, and they’re not all that hard to track.

Your dealership’s vital signs are the best indicator of the “health” of your marketing efforts and the store itself. They clearly indicate the effectiveness of your limited advertising dollars and whether the maximum profits are produced. After all, anyone can sell you cheap leads, but the old adage is true: “You get what you pay for!” The real cost is seen in the results. (Should I tell myself my blood pressure is fine without knowing the number?)

Bob Blackburn is vice president of sales at AutoLending Network in Charlotte, N.C. E-mail him at bblackburn@special-finance.com.

Topics:F&I
Subscribe to Our Newsletter

More F&I

Under the hood of a Toyota Prius EV Hybrid car.
F&Iby StaffJune 15, 2026

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic

EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.

Read More →
Several illustrations of question marks on a surface
F&IJune 10, 2026

The Psychology Behind Menus That Increase Add-On Sales

There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.

Read More →
Man holding magnifying glass over sales volume paper.
F&IMay 29, 2026

Why Your F&I PVR Is Misleading You

Here’s a handy checklist of the numbers to track in 2026 instead.

Read More →
Ad Loading...
Photo of woman typing on a laptop as she sits on a couch
F&Iby Hannah MitchellMay 29, 2026

Auto Consumer Anxiety Presents Opportunity

A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.

Read More →
Dustin Gingerich standing on stage giving a presentation
F&Iby Lauren LawrenceMay 28, 2026

Humble and Hungry: 12 Rules for an F&I Life

Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.

Read More →
Photo of businessman's hands resting on files on a desk
F&Iby John TabarMay 27, 2026

Focus on the Opening

F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.

Read More →
Ad Loading...
Photo of a three-seat vehicle back seat
F&Iby Hannah MitchellMay 22, 2026

F&I Reaches for the Sky

The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ryan Ruff, The 90/10 Rule, Automotive Training Academy, Sales Series
F&IMay 6, 2026

The 90/10 Rule

In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.

Read More →
Ad Loading...
Photo of essential oil diffuser on desk next to laptop
F&IMay 4, 2026

Your Office Is Talking

What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.

Read More →