Role of the Auto Dealer Finance & Insurance Manager

As the title implies, the role of the Finance & Insurance Manager, or "F&I Manager", is to arrange car financing and offer insurance and other add-on products to the car purchase. These people process all the necessary paperwork when selling a car but their most important function is to increase the profit a dealer earns on a car by selling "back-end" products.

After hours of haggling over the price of a car, most people think the battle is over but in reality, it's just begun. F&I Mangers are usually located in a tiny office towards the back of a dealership, well dressed and very much sales oriented. It is this part of a car purchase that most consumers have little or no understanding and can pay thousands in additional expense if they're not careful.

Make sure you do your homework prior to purchasing a car and sitting down with the F&I Manager. Research car loan payments using our car loan calculators and decide whether or not you'll need or want additional insurance coverage like an extended warranty before going to a car dealer. Comparison shop for insurance on our website. This will greatly reduce the amount of time you spend in the F&I office and keep negotiations above the table. If possible, get pre-approved for car financing and know the terms of the car loan before you go to a dealership. This will allow you to more accurately compare car loan offers with the dealer.

Start your conversation with the F&I Manager by asking him or her about any promotional financing programs available through the dealer like low or no interest car financing. Next, have the F&I Manager break down the total price of the car including documentation, title and registration fees and sales tax. Ask them to quote you a car payment for whatever length of term you desire and disclose the interest rate they are using. Make sure the car payment they're quoting does not include any back-end products – just the price of the car.

If you are interested in any of the products offered by the F&I manager, remember that price is negotiable on nearly every one of them so hang in there and make sure you get the best price possible. It's realistic to save up to 50% on many items offered by the F&I manager such as extended warranty coverage, security systems, paint protection, undercoating, GPS systems and audio equipment. Also, keep in mind that any item added to the sales agreement and included in your car financing will add additional interest expense. If possible, you may opt to pay cash for the extra products by increasing your down payment to offset any additional finance charges.