Surviving the F&I Office

Congratulations! With the intrepidity of Indiana Jones navigating a booby-trapped treasure cave, you've emerged safely into the light of day at a local dealership with a good price on the vehicle you want to buy. But like Dr. Jones, you've only gone from the frying pan into the fire, as you face the next formidable challenge. As demonstrated on the big screen, it does no good to survive the giant-ball trap if you subsequently fall to the poison darts.

New-car buyers are becoming increasingly savvy, pushing dealers to turn to their finance and insurance (F&I) offices to make up for lost profits. The F&I person "helps" the buyer by arranging financing and may also serve as an "upsell" person, offering additional services, protection, and components to fatten the dealer's profit margin.

You must avoid mistakes in this phase of the car-buying process as deftly as when negotiating the sales price of the car. Too many shoppers see escaping the cave alive as the primary objective. However, it's crucial to your long-term ownership satisfaction for you to expend the energy necessary to ensure your adventure ends with both the treasured vehicle and a fair overall deal.

"There are a lot of serious [F&I] abuses going on, there is no question about it," says Jack Fitzgerald, president of Fitzgerald Auto Mall, a posted-price, no-haggle dealership in Kensington, Maryland. "It is a widespread problem."

The National Automobile Dealers Association recognizes the seriousness of aggressive dealer financing tactics and has issued guidelines for its members to follow as well as advice for consumers. (To get the brochure Understanding Vehicle Financing, developed by the American Financial Services Association, visit www.nada.org or www.afsaef.org.) As with any industry, the ethics and tenacity among dealers covers a broad spectrum. You should seek out dealers that have an excellent reputation. National surveys, such as those by J.D. Power, can help with general trends among brands, but ultimately the best referral source will be through personal recommendations. Remember that even sterling dealerships can have unscrupulous staff members, or days when quotas strain even the most respected sales personnel.