Tech startups are actively looking for ways to better communicate with dealers so that fewer consumers are flipped on a loan offer when they walk through the door with financing from an app, several companies said.
For example, Zach Klempf, chief executive of Selly Automotive, recalled when he used to work at a dealership in 2010, his old boss instructed everyone to flip consumers who came in with a TrueCar deal.
It’s “hard to imagine” that strategy working for dealers anymore, though, in the face of the changing consumer mindset, he said. “Dealers are going to have to adapt in someway to these new models,” Klempf added.
Dealers are feeling the pressure to improve digital operations and should focus more on the insurance aspect of F&I, said Serge Vartanov, chief marketing officer at AutoGravity.
“Instead of trying to flip you, I can have a conversation with you about GAP insurance,” Vartanov said. “That will net more profitability and increase the value for the customer as well.” Consumers want more transparency and a “piece of mind,” which they are willing to pay a little extra for, he added.
