F&I Process

The F&I Process refers to the sequence of steps and best practices followed in the Finance and Insurance office once a car sale is agreed upon, to finalize the deal and offer additional products. Key components include: obtaining a credit application and getting lender approval (if financing), structuring the loan or lease details (term, rate, payment schedule, often O.A.C.), preparing all legal documents (bill of sale, loan/lease contracts, warranty forms, etc.), and presenting F&I products such as extended warranties, GAP insurance, rustproofing, etc., to the customer via an F&I menu. In Canada, the F&I manager also must ensure compliance with lending laws and disclosures (like clearly showing the APR and total cost of borrowing on contracts, as required by provincial consumer protection acts) and privacy laws (handling the customer’s personal and credit info securely). The process ends with signing all paperwork, collecting any down payment or proof of insurance, and providing copies of contracts to the customer. A smooth F&I process balances efficiency (customers don’t want to wait hours after agreeing to buy) with thoroughness (making sure all documents are correct and the customer understands their commitments and options). It’s also a big profit centre for dealerships: the presentation of products is done in a consultative way to add value for the customer while boosting dealer profit. Finally, after the sale, the F&I manager might also handle contract funding (sending documents to the bank for payment) and ensuring any stipulations are cleared. Overall, this process is critical both for customer satisfaction (it’s often the last impression before delivery) and the dealership’s legal and financial outcomes.