- Car Dealership Guy News
- Posts
- 'GMs don’t get finance:' How this operator uses F&I to outrun the market
'GMs don’t get finance:' How this operator uses F&I to outrun the market
Featuring Chase Channell, General Manager of Victory Honda Jackson
Welcome to another edition of the Car Dealership Guy Podcast Recap newsletter.
In this episode, Chase Channell, the General Manager at Victory Honda Jackson, shares how his foundation in F&I shapes the way he runs his store, why grassroots used car sourcing beats CarMax in small towns, and what most GMs still don’t understand about lender relationships.
1. Knowing F&I elevates your game as a GM.
Chase attributes a lot of his success as a GM to his understanding of F&I.
“The lender relationships are so important, understanding how the bank programs work, understanding how underwriters look at things, understanding funding departments and funding tolerances on products and things.”
When you have people operating dealerships that don't have an F&I background, you're at the mercy of somebody else.
2. Being hands-on in the process keeps everyone on their toes.
Chase is still very active in the F&I deals at the store.
“I call on most of our deals for our guys. If they can't get deals done, I still rehash deals, to this day to make sure…You have to be willing to look at a deal, look at the client, and decide, is this good for the customer? Is it good for the dealership? And is it good for the lender?”
Eliciting favors in the F&I business is only good if customers are paying.
3. Protecting your reputation is key in the business.
A lot of F&I deals in the car business are based on relationships.
“One of the best pieces of advice I ever got when I started was—the only thing you have in finance and the car business is your reputation. They said, ‘If you want to look at things short term, you can, but you'll find that the business is small and it's way smaller than you think.’”
To this day, Chase still finds himself leaning on relationships he established years ago to do deals.
4. Managing F&I successfully is a balancing act.
Not every deal is a good deal for the business long-term.
“Occasionally, I'll get a deal on my desk, and I look at the credit, and I look at everything and I'm like, ‘why did we put these people in a car?’, because I'm not going to call and ask for the bank to do something that doesn't make any sense.”
That’s the balance that you have in the business—which requires an understanding of F&I.
1. DLRdmv – Dealers, are you still stuck using outdated interstate titling methods? DLR50 from DLRdmv modernizes out‑of‑state titling by providing 24/7 sales tax, title, and registration fees, pre‑populated state-specific forms, through an online platform that directly integrates with your DMS. CDG listeners get 30 days of free full-service access to DLR50 on unlimited out-of-state deals. Head over to DLRdmv.com/CDG and use code POD30 to claim your free month today.
2. Copart – Are you looking to expand your dealership’s wholesale inventory? Finding front-line ready vehicles from finance, fleet, and rental consignors is now easier than ever. Copart Select gives you transparency that drives profitability and the assurance you need. Register as a member to get started at carguymedia.com/44x0XYn.
3. CDG Recruiting - The Go-To Talent Partner for Dealers. Hire pre-vetted GMs, sales, F&I, fixed ops, C-suite, and back-office talent—ready to perform. Faster hires, better results. Book a call → CDGRecruiting.com
5. Painting the picture is an important part of the process.
The customer's credit is like a painting, and it's the F&I person’s job to be able to paint the picture.
“After hearing that, I would always go out and I would print the whole credit bureau, and I still do this; I go sit down with the customer…and I put notes out from every single line item on the bureau. I ask about income. Do you have any lottery winnings, alimony, child support?”
A lot of people don’t do this.
6. Making sound F&I decisions really boils down to knowing your customer.
Assessing the best F&I fit requires some discretion.
“The longer you're in it, you realize that…these people are in constantly…If you have way more customers that are able to trade because you gave them favorable terms up front, that's better for the manufacturer, it's better for the dealer, it's better for the customer.”
You can't leave the decision to a producer whose pay is based on the idea of getting an extra thousand bucks in reserve.
7. A customer-first approach begins with leadership.
Chase credits his ability to take a more personal approach to F&I to being at the right company.
“For me personally, it's echoed by the leadership and the owner of our auto group…And he thinks way longer term than I do—and I admire that.”
There is a know that we don't have to worry about our reputation because we're doing right by the customers.
8. The size of your business should have no bearing on how you treat customers.
Victory Honda—part a 60-rooftop dealership group—operates as a management structure that allows each dealership to operate as their own store.
“Our name tags that we wear have a kind of culture list on the back of them. The owner of the company, Mr. Cappo, always says, if you forget what to do, read the back of your name tag. And it just has those culture points–act within the best interest of the customer. Don't do anything stupid for short-term gain—and treat people right.”
Just do the right thing.
9. The general manager should be accessible to customers.
Chase still desks the majority of Victory Honda’s deals.
“I don't know a lot of general managers (who) are that involved with working every single deal. I'll go out and demo the cars with the customers. We don't have any offices, we hide in that we're trying to avoid customers. I sit right at the front. When you walk in the door, I’m there.”
The buck stops with Chase, and he thrives on being accessible to customers.
10. The GM should always be ready to step into the player’s role.
You have to be willing to go to battle for your people.
“I always tell my guys…we want the best person that's available to be at the plate. We want them at bat, so if I'm Mark McGuire in the prime and I can be up there and take the swing, why would I send the ninth hitter in?”
There are a lot of GMs who aren’t comfortable being “the guy.”
Did you enjoy this edition of the Podcast Recap newsletter?Let us know if there's anything different you want to see - |
Interested in advertising with Car Dealership Guy? Drop us a line here.
Want to be considered as a guest on the podcast? Add your name here.
Reply