Team efforts that are both customer-focused and improvement-driven form a common thread for F&I operations at the top three grossing dealers in the United States: Longo Toyota, Fletcher Jones Motorcars (Mercedes) and Galpin Ford, all in the Los Angeles market. Each of the top dealerships also achieved at least $1,000 in F&I per-vehicle income last year.

The No. 1 dealer, Longo Toyota, El Monte, Calif., attained a company record of $24.6 million in F&I sales revenue by gearing its 17-person F&I staff to present a Toyota Financial Services-scripted menu of products in an average of 10 minutes during the total selling process.

“With our volume, closing in on 20,000 new-car sales a year, our sales efforts have to be efficient,” said F&I manager Mike Markarian. “We limit the total process to 25 minutes, and the menu presentation to 10.

“It’s surprising how well the customers like that, compared to the old one-by-one presentations,” Markarian told F&I Management and Technology. “Security systems, like Code Alarm and LoJack, became our top selling products, and go a long way towards clinching the $1,000-per-deal yield.”

Longo Toyota, owned by the Penske Automotive Group, enjoys a 50 to 60 percent penetration rate on service contracts for pre-owned vehicles, most from Resource Group, and 30 percent penetration on new-vehicle contracts, supplied primarily by Toyota Financial Services.

“What had made our F&I team become so productive,” Markarian said, “is that they all have served as salesmen here or at other Penske stores – they’re insiders. Our leaders, Roger S. Penske and his son Greg, whose office is here, strongly believe in promoting from within. With Toyota, F&I staff are more ‘explainers’ than ‘pushers,’ and the customers appreciate that.”

The No. 3 store, Galpin Ford, North Hills, Calif., in the San Fernando Valley, generated much of its volume in a tough market for Big 3 vehicles, from leasing and traffic-boosting sales incentives. The weekend before July 4, Galpin’s F&I staff was working to midnights due to a Ford Credit loan program offering no payments for a year, which stimulated business.

“It was very busy for us,” says 17-year F&I veteran Donna Stonecither, “but we achieved 65 percent penetration with service contracts, maintenance programs and GAP coverage.

“The Boeckmann family (owners of Galpin Ford) are highly motivated to keep F&I sales high as a customer loyalty and benefits package," continued Stonecither. “They are proud of our position as No. 1 Ford dealer. Even though we do a lot of leasing, we promote service contracts heavily, as well as anti-theft systems. This is a seven-day market, and the Boeckmanns are on hand every day to keep us motivated, which is why we do so well.”

Brian Gelt is F&I director for Galpin Ford, which uses Universal Underwriters as a primary alternate provider of service agreements, especially for pre-owned vehicles.

At the runner-up dealer in total revenues, Orange County’s Fletcher Jones Motorcars, general manager Garth Blumenthal is adding three F&I staffers to a five-man staff headed by Marq Linden. The Mercedes dealership introduced a compensation system this past year, paying F&I managers on individual as well as team performance, and named a special finance manager whose main providers are Westcorp, Triad and Centrex.

“One of our big sellers,” Blumenthal said, “is a Permaplate paint sealant to protect crs against acid rain and Santa Ana sand storms. We’re also preparing to offer the $350,000-$450,000 Maybach super-sedan, with dedicated staffers. That should really boost our F&I grosses and average per vehicle.”

Fletcher Jones distributes its vehicle leases to Mercedes-Benz Credit, Chase and U.S. Bank. Having leaped by Galpin Ford in total revenues in 2002, Blumenthal said he has set a five-year target of surpassing Longo Toyota, whose gross income reached a record $554 million in 2002.