November 2017, F&I and Showroom - Feature
Pictured with American Financial’s Arden Hetland and F&I and Showroom’s Gregory Arroyo is General Manager Adam Black, who received the magazine’s F&I Pacesetter award on behalf Bob Moore Cadillac of Edmond at the magazine’s annual conference in Dallas this past September. The dealership is one of two Cadillac stores in the 14-rooftop Bob Moore Auto Group.
The magazine entered 2017 with a new sponsor for the F&I Dealer of the Year program and a goal of identifying its 16th winner. The award would go to Star Dodge Chrysler Jeep Ram/Hyundai (See Page 14), but there were two other deserving organizations gunning for F&I and Showroom’s annual award.
Common among each F&I Pacesetter are active management teams, pay plans that balance performance with customer satisfaction, and multilayered compliance procedures. These organizations also demonstrated their dedication to the industry and the communities they serve. The following profile provides a glimpse at Bob Moore Cadillac of Edmond.
Background Check: The Edmond, Okla., Cadillac dealership is one of two Cadillac stores in the Bob Moore Auto Group, a 14-rooftop dealer group founded by Robert W. Moore.
Moore opened his first dealership, a used-car lot, in Wichita, Kan., in the early 1950s. He would add an Oldsmobile franchise before selling both stores in 1970. That’s when he moved his family to Oklahoma City for a chance to own his first Cadillac dealership.
The dealer group is now under the guidance of the founder’s son, Mark Moore, who took over as president and CEO in 1998.
Bob Moore Cadillac of Edmond’s four-person F&I team, which is led by F&I Director Tim Ososanya, averages $1,568 in F&I profit per vehicle retailed for new and used combined, including $1,696 per copy on new alone. GAP leads the way with a 35% acceptance rate, followed by service contracts at 33%. The group’s tire-and-wheel, paintless dent removal, paint protection, and windshield repair products have acceptance rates of 25%, 23%, 18%, and 21%, respectively.
The Numbers: The four-person F&I team for Bob Moore Cadillac of Edmond averages $1,568 in F&I profit per vehicle retailed (PVR) for new and used combined, including $1,696 per copy on new alone. GAP leads the way with a 35% acceptance rate, followed by service contracts at 33%. The group’s tire-and-wheel, paintless dent removal, paint protection, and windshield repair products have acceptance rates of 25%, 23%, 18%, and 21%, respectively.
Tim Ososanya serves as F&I director for the group’s two Cadillac stores. He says a high percentage of certified pre-owned sales and Cadillac’s transferrable four-year, 50,000-mile limited warranty help explain why the Edmund location’s service contract acceptance rate isn’t higher. It also explains why acceptance rates are so balanced across the dealership’s other F&I protections.
There are other reasons as well. Oklahoma ranks 40th nationally in terms of road quality, a fact producers don’t even have to mention when selling tire-and-wheel. “Our customers know the roads are pretty bad here,” Ososanya says.
The dealership is also blessed with a talented crew of F&I producers driven by a rewarding pay plan. But the real secret to their success is the dealership’s ability to get the sales and F&I teams pulling in the same direction. “That’s the only way you succeed, when both departments are pulling on the same side of the rope,” he says.
The two teams meet every Saturday morning. An example of the topics covered is the vehicle walkaround, which salespeople will use to point out vehicle components covered by the dealership’s F&I protections.
The same happens if the customer has a trade-in. With the customer in tow, the salesperson will walk around the vehicle pointing out things like dents, dings and bent wheels that will require reconditioning. “Customers can now picture in their minds why they probably didn’t get the money they wanted on their trade-in,” Ososanya says. “Hey, the higher you want to build that skyscraper, the deeper that foundation needs to be.”
And every customer, even those paying cash, visit the F&I office to receive a full product presentation. That process starts with a simple explanation of the steps ahead before the producer verifies the customer’s deal and personal information.
There’s something else that drives the dealership’s F&I process: checklists. When Ososanya joined the group nine years ago, Jeff Powell, the group’s current vice president, served as his general manager. The executive wanted to speed up the F&I process, and Ososanya believed incomplete paperwork from sales was the biggest culprit. So the F&I director suggested that Powell institute checklists in the showroom.
“Well, Mr. Moore, I guess, had heard paperwork in my dealership wasn’t a problem and asked why. We told him about my checklists,” Ososanya says. “After they reviewed it, they decided to incorporate the checklist groupwide.”
Today, three-quarters of the items covered by the checklist are required by state and federal laws. The rest pertains to the group’s internal controls, including a needs analysis completed by the sales team. The latter is designed to identify what customers are looking for, their driving habits, and more. The result was faster transaction times.
Compliance Check: While Bob Moore Auto Group’s checklist process ensures compliance, it’s the organization’s focus on training that drives it. Finance staffers, for instance, are required to complete compliance training twice a year. It’s provided by the group’s F&I product provider, EFG Companies, whose field reps are certified by the Association of Finance & Insurance Professionals (AFIP).
The group’s F&I producers are also required to earn AFIP certification before they take their first turn. In addition, they receive in-store performance and compliance training on a regular basis from EFG Companies, which performs deal audits on a quarterly basis.
Trophy Case: In 2017, Bob Moore Cadillac of Edmond was named a General Motors Elite Dealer, a designation that puts the store among the Top 300 Cadillac dealerships in the United States. The dealership also earned Certified Elite Dealer status for service. The dealership’s sales and service teams are also no strangers to the automaker’s Mark of Excellence honors.
In 2016, the Oklahoma Gazette listed the dealer group to its “Best of OKC” list, naming it the “Best Place to Buy a New Vehicle” and “Best Place to Buy a Used Vehicle.”
Giving Back: Since 2016, the Bob Moore Auto Group has donated 350,000 pounds of food to a regional food bank. The group also partners with the local NBC affiliate on its annual coat drive, Warmth 4 Winter, with each dealership donating coats to the Salvation Army.
The group is also a major participant at the OU Children’s Hospital, setting up gift shops during Christmas, Mother’s Day, Father’s Day, and Valentine’s Day so children can shop for their loved ones.
The organization is also a major supporter of the Pepper’s Ranch Foster Care Community, the Miss Oklahoma Scholarship Pageant, and the Dead Center Film Festival. It’s also one of four private sector supporters of the Revitalization of Red Andrews Park in downtown Oklahoma City.