F&I Pay Plan

[sreid4]

We are a multi line Gm store in a small town need some help on an f&i pay plan we sell between 30 and 50 units a month with one f&i person any help would be appreiciated

thanks

[mbowers]

At 30 to 50 units a month, your F & I person is underutilized. As a benchmark, F & I reps should handle around 100 turns a month.

Without knowing other aspects of the situation, the F & I manager should have additional responsibilities like assisting the new and used car managers. Then the pay plan could include F & I performance plus some portion of the front-end gross.

[sallen1]

Like what mbowers suggested, you need to balance the workload and the compensation. Our volume's not that red-hot (single line dealer) but we have a New car mgr, used car mgr and and F&I mgr. who share duties and aren't totally overworked. Compensation is based on a variable gross and a net profit (whole dealership) component. We don't really generate a bunch of money from F&I (compared to vehicles and service) but the paperwork and delivery quality is very, very important. I don't think we (or you) could support an F&I mgr. based only on F&I income.

scott

ps. When developing payplans, try to work the figures 'backward'. Ask first, where should our gross/net be? Then, what is a sales manager worth (based on market conditions, experience, etc.)? You should be able to factor percentages from your gross/net as the 'commission' part and combined with a base will get the payplan agreeable to all. Put the incentives where you want performance.