Since moving to Toronto, I have been renovating the house and making a study of Canadian F&I. Some things here are more advanced, like the variety of financing plans, and some are backward. Pictured here is something I haven’t seen in a long time – the dreaded “secret price” button. This is a far cry from dealer sites in the U.S. and contrary to everything I believe about e-commerce. For my new friends in Canada, here is the right approach. As a consultant, this just means more work for me.
Category: Online F&I
Looking in Canada
I am seeking an engagement in Canada. Toronto would be best. Call it nostalgia. Call it the strong currency. I have relevant experience from Canadian projects with ADP and GMAC, and I have dual citizenship. If you’re reading this, you already know the value I bring to my clients. Please feel free to call, or write me at the email address given here.
Ahead of Its Time
I like TrueCar. I have used the service myself, and recommended it here before. So, I was sorry to read that they are being forced out of Group 1. My vision of Online F&I, in a nutshell, is that customers will someday desk their own deals. That’s why I applaud AutoNation for their persistent efforts to move away from the antiquated “secret pricing” approach.
Group 1 had also been in the vanguard, but now Honda is pressuring them to drop the TrueCar relationship. The comments from Honda remind me of some I heard way back when MSRP data first appeared on the internet. “Unacceptable,” stormed Herr Heitmann, “must be stopped!” Meanwhile, Edmunds was already publishing our invoice prices.
Of course, as an e-commerce guy, I am biased. You can’t just say information wants to be free, to an angry factory exec – or a struggling GSM. Except that it’s true. Transaction prices, like invoice and MSRP, are going to be out there. We might as well get used to it.
Paperless Contracts, Almost
At the conference this week, there was dinner conversation about the value of paper contracts for F&I products. Provider Exchange Network will host forms for providers that do not have their own forms service. We can also return images of the completed contracts – with signatures, where available. I was encouraged to hear one of our larger customers declare that they don’t need paper.
As long as we receive the data and payment, that’s all we need.
This succinct formulation reminded me of Dr. Hammer’s pronouncement on accounts-payable matching – if supplies come in, and you need them, then pay the invoice.
Closer to home, it reminded me of my own experience with online credit. When we rolled out the BMW InfoBahn, we wanted to receive credit application data – but not the faxed copies. So, we arranged for the dealers to retain signed originals, subject to audit, for every application submitted online.
The car buyer will probably want a paper contract – to sign, for instance, where electronic signature is unavailable – but at least we can avoid mailing a copy to the provider. Saving the rainforest, one ply at a time …