How Can Car Dealers Maximize Financial Services?

Dealerships earn money on auto financing via the dealer reserve system. Your business secures a loan from a bank or credit union at one rate ("buy rate") and then marks it up ("sell rate") before offering it to the customer. Because the majority of buyers finance their new car purchase, this means a big opportunity for potential profits. 

With an average markup of just over 1%, however, it's not just about marking up loans. Your dealership can make the most of car financial services by thinking outside the box.

Champion a Cross-Functional Approach

In the conventional dealership model, separate departments worked independently, and customers moved from one to the other. Today's consumers, however, want more seamless sales experiences — and today's competitive sales market demands more innovation.

By integrating Finance & Insurance (F&I) into all of your departments, you can improve your customer experience while also increasing your profit margins. You can strengthen departmental integration by doing the following:

• Creating cross-functional teams that work together in a collaborative environment.
• Ensuring that each team member receives training on the financing process.
• Establishing a pathway for employees to move within or between departments.
• Building a cooperative rather than competitive culture, one that prioritizes team revenue generation over individual "wins."

Streamline the Customer Experience

Integrating financing into multiple departments goes a long way toward streamlining the sales experience for the customer. Make sure to extend that line of thinking to all of your sales tools.

Many (if not most) of your customers these days will browse, compare, and sometimes even purchase online before they enter your dealership. If the digital sales process ignores financing until the moment they walk through your doors, you've created a disjointed experience and perhaps a dissatisfied customer.

Make sure to invest in strong e-commerce dealer technologies that effectively promote and sell not just your vehicles but also your financing products. 



Are you looking for another reason you may want to invest in integrated digital tools? It can free your staff up for other dealership activities, optimizing your operating margins.

Explore Strategic Partnerships

Working with a strategic financing partner can help your dealership reach its profitability goals. When searching for the right solution for third-party financial services, seek out a full-service organization with a human touch. Digital tools are essential, but so are relationships. You want a partner who is accessible, responsive, and committed to your success. 

Finally, look for a financing partner who will put their metrics where their mouth is. That is, find someone who is glad to use data to show how they are helping your dealership. Data-based approaches show what works and what doesn't, allowing you and your partner to change directions when needed.

Edge Financial Services LLC: Your Partner in Car Financing

You can count on Edge Financial Services LLC to be your trusted car financial services partner. We work with both franchised and non-franchised dealers to help you sell more vehicles and create valuable customer relationships.

Rather than relying on just a credit score, our buyers put their common sense and experience to use in making car financing decisions. Contact us today at (866) 890-2415 to see how we can help your dealership.