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Financial Service Managers - Answer to No One!

I am confident that I will spark some controversy with this article.

I encourage you to send me your opinions, both positive and negative. By far the Financial Services Manager, also known as a Business Manager or an F&I Manager, has the best job in the entire dealership. Think about this for a moment. For the most part, to whom do they directly report? Most Sales Managers would tell you that the Financial Services Manager reports to the General Manager or Dealer Principal and most General Managers and Dealer Principals would tell you that they report to the Sales Manager. This lack of recognized authority over the Finance Manager is the first problem and most Finance Managers are fully aware of this fact. May learn to take advantage of this situation very quickly. How do they take advantage of this situation? First, let�s look at some of the operational practices within the dealership as they pertain to Financial Services Managers.

Are they truly a part of the management team?

If so, why are they not responsible for assisting the Sales Manager in performance evaluations, training, mentoring and other recognition and disciplinary actions of salespeople?

If not, why are they attending manager meetings?

Why should a salesperson follow instructions that they are given by the Financial Services Manager?
Why don't most Financial Services Managers attend the weekly sales meetings?
Why don't most attend training meetings and sessions that the rest of the sales staff attend?
Why are they exempt from praise and discipline in regards to sales satisfaction scores?
Why do they share in sales department bonuses for unit sales?
Why are they exempt from discipline when the sales department doesn't meet its objectives?
Why don't they have to handle irate customers?
Why do they seem to come and go at their leisure rather than following the same schedule everyone else follows?
Are they even part of the sales department or are they a department unto themselves?

As mentioned in the first few lines of this article, it is a fact that most General Managers and dealers are forced to shrug their shoulders and say 'I dunno' to most or all of these questions; therefore, making the role of Financial Services Manager the best position in the dealership. The financial services department contributes considerable gross to the entire dealership and dealers don't want to alter their current situation regardless of the fact that FSMs, in effect, answer to no one. This makes it extremely difficult to track their success or lack of it. We simply look at the average back-end gross per unit and decide that the number is good enough. Unfortunately, this is not necessarily the best indication of a successful or unsuccessful Business Manager. Many customers, and many salespeople, determine through the course of the deal, that an extended service contract, undercoating, insurance is required and it becomes part of the deal; therefore, these additions are already pre-sold prior to the customer's meeting with the Financial Services Manager. If this happens more often than not, the Financial Services Manager is merely cashing in, rather than selling. Most financial institutions pay a reserve based on the amount of the loan. Is this really being 'sold' by the Financial Services Manager? Determine what your average reserve is and compare that to the average total back-end gross. If these numbers are very close to each other, the FSMs aren�t really selling, are they? An FSM in a busy dealership, simply by the sheer volume of sold customers coming into the financial services office, will certainly earn a very good living. The question is, are they actually earning it?

As a Financial Services Manager, I encourage you to prove to your dealer, General Manager, Sales Manager and yourself what you bring to the table. Determine from your customers what you sold, above and beyond the 'givens' such as doc fees and reserves. You will be amazed at what you do and don't bring to the table. I also encourage you to become a 'Manager' - it's in your title, but tell me - who and what do you manage?

Good selling - I expect to hear from you soon!
david.cameron@autouniversity.com