By Robert Grant, Associate Director of OEM Business Development, Lightspeed
In the marine industry, dealerships are like the old Transformers cartoons — “there’s more than meets the eye” when it comes to running them. While selling boats is a foundational piece of the puzzle, having successful F&I operations is a key piece to the overall revenue and prosperity of the business.
Based on a study published in autonews.com the average F&I profit per retail unit is less than $800. Top performers average more than $1,100 per unit. It was also found that service contracts had a 38% penetration rate for the average F&I office. The top performers had a 54% penetration rate.
However, some dealerships might feel ill-equipped to offer financing, warranties and other protections due to the complexity of the products and the sales process. So, they need to decide if they hire an F&I sales specialist or outsource it to a third-party supplier and how they can achieve success regardless of the direction.
We talked to Eric Smith of Colorado Boat Center (an MRAA Board member) about his experience with F&I. He shares how they’ve found a system that works for their dealership.
Integration into the Sales Process
One key element of a successful F&I operation is to implement it seamlessly into the sales process. Smith recommends that the F&I part of the process would actually happen earlier, before the deal is close to being closed.
“My biggest pet peeve when I go into a car dealership is when I sit down at that finance desk. I’ve already decided on the truck. I know what I’m buying, and I know what I’m paying, and we’ve agreed to that,” said Smith. “And then all of a sudden, the finance manager comes in and sells me all of these extra products. No, you’ve already taken me outside my comfort zone, so now I’m gonna shield up.”
Whether it’s in-house or outsourced, it’s critical to have the F&I be a part of the conversation throughout. Don’t bombard customers at the last minute.
While Smith outsources their FYI to a third-party provider, the lesson extends to both, that it should be fully integrated: “Our F&I reps are touching every deal and they’re touching all of our finance deals and even our cash deals.”
Believing in What You Sell
As with any good salesperson, you make the most impact when you put your own money where your mouth is. Smith experienced that first-hand when he was selling Vantage protection wraps as a part of his F&I program. He explained that he had not been sold on it personally for several years, but then it all changed.
“I had some damage done on one of my pontoons from a detailing job. And so I said, ‘Okay, I’ll order this and put it on my boat.’ I had my boat in the showroom as I was installing this product, and I hadn’t even finished it, and I had sold three products.”
This goes to show that the protections and warranties that you can sell through F&I are so much more impactful when you can show how it can really affect the customer.
Selling with Heartstrings, Not Fear
However, selling the importance of protection shouldn’t come with fear. Smith clearly outlines how it’s more about the heart than the fear.
“You just have to be able to comfortably say, ‘Okay, we offer these additional products. And this is the benefit that this product is going to get you. And you’re making an investment into this lifestyle, so let’s go ahead and protect it.”
Smith adds that it’s a more welcoming approach. While you’ve “got” the customer in the sales funnel, show them the importance of the protection products. “If you use fear and say ‘I think you need an extended warranty, that engine is going to blow up in 2 years, they’re going to wonder if they should really even buy the boat.
“Just draw on those heartstrings to bring them in,” continues Smith. “We’ve already got them sitting down, and whether you have an in-house person that you introduce them to, or you have the offsite person that you hand them off to, you already have the relationship built. We’re just protecting you and your investment.”
Have an F&I Integration
Regardless of your choice, there are a lot of benefits to an integrated tool (like Lightspeed) to help make your F&I operations run smoothly.
With so many different F&I product and service providers, having a system in place that can integrate with those providers will help reduce your manual data entry processes. Since you have already entered the buyer and unit information, with a single click of the button, transmitting the details directly to your third party will eliminate errors and increase efficiency for processing contracts.
With the latest technology, third-party F&I providers can even push updated totals and deal details back to your Dealership Management Software (DMS). This has the opportunity to eliminate errors and increase your efficiency for processing. Encourage your providers to reach out to implement the latest features.
In addition, being able to run your credit checks with the push of a button is a critical key in the overall financing process. Whether you are doing a soft pull or full checks including red flag, OFAC, having the ability to automatically transmit the customer information to the bureaus will save you time and money.
Streamline Your Process
Above all, it’s about streamlining the process. A lot of dealerships use multiple systems in the sales process. Many have a separate CRM to track and manage leads, a separate quoting/desking tool, a separate F&I menu and multiple F&I product providers which use different systems. This reduces efficiency by requiring multiple points of manual data entry which can introduce errors along the buying journey. Look at your process and ensure that you have a DMS in place that allows you to track your customers’ entire buying journey in one place.
While there’s more than meets the eye in the marine industry, if you have a streamlined operation (complete with F&I) you can have a thriving business and loyal customers.
About the Author
Rob Grant, Associate Director of OEM Business Development at Lightspeed, has dedicated almost three decades to enhancing the marine dealership experience. His deep-rooted commitment to the marine industry is driven by a profound understanding of the unique challenges and opportunities within this sector.
Rob has spent years immersed in dealership workflows, giving him a firsthand understanding of the challenges marine dealers face — from service scheduling to sales efficiency. His work is especially focused on RECT (Repair Event Cycle Time) and how strategic OEM and third-party integrations can simplify day-to-day processes, improve communication and reduce friction for dealers and their customers.
Today, Rob is a key advocate for marine dealerships within Lightspeed, helping manufacturers and dealers alike harness the power of data-driven decisions and modern DMS tools. His collaborative approach and industry expertise have helped shape stronger, more connected dealership networks. Rob lives in Utah. He enjoys spending time with his family, boating on local lakes and supporting the continued innovation of the marine industry he proudly serves.
Lightspeed is an MRAA Strategic Partner
