I have just published a white paper on DSP integration for F&I providers. This builds on an observation I made while working at GMAC Insurance last winter. Rather than struggle with a DMS interface, providers should develop their own web services – and let the various point-of-sale systems come to them. This is much more efficient, and good SOA practice besides. Click here to download the paper, or visit the Virag Consulting web site.
Automotive News reports that Group 1 has suffered a nine-percent drop in F&I gross, and is hiring regional directors to bring it back up. I certainly agree with this approach. It worked for us, when I was at AutoNation. We called them “district finance directors” back then.
Group 1 CEO Hesterberg says tighter lending limits do not allow much for F&I product sales. Since Group 1 is a MenuVantage user, they can address this problem using the system’s goal-seeking feature, as shown here:
This helps the F&I Manager to sell products up to the full amount authorized.
I am heading home to Detroit for Thanksgiving, and client meetings. Everyone in this business knows about winter in Detroit. On this trip, I will see ODE, Route One and (not confirmed yet) GMAC. I am proposing to continue running my brainchild, the Provider Exchange Network.
I have been polling my friends in the F&I Products industry, to hear their thoughts on DSP integration. In general, they report obstacles at the dealer level and lower volumes than anticipated. The growth in web services continues, of course, with scattered outbreaks of SOA.
What I mainly wanted to hear about was forms management. GE was the first, in my recollection, to provide completed contracts using their own web service – and this is now the trend. It seems increasingly unlikely that providers will hand their forms over for administration by a DSP.