Every dealership knows the sting of chargebacks and cancellations on F&I products. That F&I sale is really only fully successful when it’s fully paid for and profits are retained. Here are some tips to make sure you keep as much of your sale proceeds as possible:
- Find better products. Whether it’s protection plans with fewer exclusions and a better customer experience, or offerings like ExpressGAP, which are designed to protect dealerships from chargebacks, your product mix is the biggest factor in limiting chargebacks.
- Sell what the customer needs. Offering a product mix that works for both the customer and the dealership is the best way to limit chargebacks, because the customer is happy with the product, finds value and is able to afford it.
- Understanding “no chargebacks.” This language is seen as insurance against cancellations, but be sure that it makes sense. “No chargebacks” can be a valuable protection, but often, the cost is too high and because it’s baked in to your product cost, it can be difficult to determine if there is a true ROI.
If you’re struggling with chargebacks, FLADCO can help. With a fast analysis of your F&I offerings, we can provide insight into price leaks, chargebacks and more. Contact us to get started.