| OK, you've finally gotten through the front end | | | | F&I department where all of this gets put |
| part of buying your car. You have worked hard | | | | into contract form. |
| done some tough negotiating and feel like you | | | | Stay focused. Some dealers and salespeople may |
| have negotiated a good and fair deal on your car | | | | even imply that in order for the deal to get |
| purchase and trade-in. Now it's time to head into | | | | approved, you have to finance through their |
| the dealer's F&I (finance and insurance) | | | | finance department. You don't. In fact, if you |
| department and go through the formality of | | | | have done your homework and found a better |
| signing the financing paper work on the back end | | | | financing offer, you should take it. At the very |
| of the deal. | | | | least, you know what numbers you qualify for, |
| You may have noticed a couple of terms: front | | | | and as such you should ask the car dealership to |
| end and back end. I used these terms to illustrate | | | | try to better what you already have. |
| a point to you. From a car dealer perspective | | | | Read the contract. Sound so basic, but most |
| there are two distinct parts (profit centers) to | | | | people don't. Don't just assume that everything |
| each deal. The front end of the deal is the new | | | | that you negotiated with the dealership on the |
| car price, your trade in, any dealer add on's that | | | | front end will make its way to the back end of |
| they got you to buy with your new car, etc. All | | | | your car deal. If you've had a long day negotiating |
| of this, most everyone is indeed familiar with. The | | | | to get the price you want, don't give it all back in |
| second part of the deal, the back end, is not a | | | | the F&I department by getting lazy at this |
| place to let your guard down. The back end is the | | | | very crucial time. |
| F&I department. The F&I manager is | | | | Without question, the single biggest mistake car |
| every bit as responsible for making sales numbers | | | | buyers make is failing to prepare. That, and |
| and profit margins as everyone else at the | | | | setting your expectation that car buying and the |
| dealership and they are sales people NOT financial | | | | negotiating process within can take at best |
| advisers and their purpose is to help maximize the | | | | several hours to accomplish. Know that you are |
| profit on the deal. | | | | going to be at the dealership for a while can help |
| Don't assume that you are going to be offered | | | | you stay energized and focused. Do your |
| the best possible interest rate you can get by the | | | | homework. Know your credit score. Get your |
| F&I manager. Quite the opposite! Adding a | | | | financing pre-approved and see if the dealer can |
| point or two (or more) to your contract interest | | | | beat what you already have. Be familiar with all |
| rate above what you qualify for is a serious profit | | | | the areas of potential sales and profit that the |
| maker for the dealer. | | | | dealer can potentially land. Know what extras (if |
| Also keep in mind that all of your hard work | | | | any) you will and will not pay for. Make sure the |
| negotiating your deal on the front end has been | | | | contract in the F&I department reflects all |
| by in large verbal and perhaps a handshake. True, | | | | the negotiations that you have worked to |
| as a result, you may have a signed buyers order | | | | accomplish before hand. Then, finally, remain on |
| or worksheet that the salesperson and or | | | | your toes and don't drop your guard once in the |
| manager have signed off on, but it is in the | | | | F&I department. |