If you've always been into cars, maybe you've considered working in the automotive industry in some capacity.
If seeing people smile as they get behind the wheel of their new cars appeals to you, consider being an auto finance manager.
In this position, you can enjoy a rewarding career while also helping customers finance and protect their new rides.
Keep reading to find out if you have what it takes to be an auto finance manager and decide if this is the right career for you.
Becoming an Auto Finance Manager
Auto finance managers are also called finance and insurance, or F&I, managers and are an integral part of a dealership's sales force.
Dealerships increasingly earn most of their profits through the sales of finance and insurance products to customers.
Marketing additional products and services to customers who are already buying a car adds value to every sale.
Education and Background
To be a successful auto finance manager, you need strong communication skills and the ability to close sales.
If you're skilled in the art of persuasion, you can convince customers to purchase additional products that add value for your dealership.
Increasingly, dealerships are making more money off of finance and insurance products than off of the cars themselves.
With a background in sales and finance and an extensive knowledge of cars, you can really help make a difference in the business success of the dealership.
Job Duties
At a basic level, auto finance managers increase dealership revenue through the sales of finance and insurance products.
These products include guaranteed asset protection (GAP) insurance, extended warranties, and credit monitoring and repair services.
When customers purchase a new or used car from a dealership, the F&I manager coordinates financing of the purchase.
Other responsibilities for an auto finance manager include:
- providing sales incentives for finance and insurance products
- training salespeople in finance and insurance products
- maintaining files and records of all transactions
- preparing monthly and quarterly finance and sales reports
Work Environment
Auto finance managers work in automotive dealerships, typically spending most of their workday in an office behind a desk.
These positions typically have private offices away from the sales floor to ensure privacy for customers who are applying for financing.
While auto finance managers typically work full time, late evenings closing a sale aren't uncommon.
Many auto finance managers also work on Saturdays, since most dealerships are open to accommodate customers.
Job Outlook
The U.S. Bureau of Labor Statistics (BLS) projects an increase of 17% in the employment of financial managers from 2021 to 2031.
This rate of increase is much faster than the growth rate for all occupations across the country.
In the automotive industry, much of this growth comes from the fact that dealerships make more money from finance and insurance products.
All of this points to a positive job outlook for auto finance managers, with skilled and experienced F&I managers in high demand.
Step 1: Graduate from High School
All auto finance managers have at least a high school diploma or the equivalent, such as a GED.
High grades and strong performance in math and economics classes in high school can help prepare you for this career.
Additionally, you want to get as much experience as you can in the automotive industry.
For example, you might get a job as a receptionist at a local car dealership while you're in high school.
Step 2: Get a Bachelor's Degree
While some dealerships don't require their auto finance managers to have bachelor's degrees, many do.
Even if it's not required, a bachelor's degree in business administration, finance, or a related field will set you apart from other candidates.
While you're earning your degree, working at a dealership will give you additional experience and a leg up on the competition.
If you're not interested in a bachelor's degree, there are also shorter F&I training programs you could try instead.
Step 3: Work as a Dealership Salesperson
Most dealerships want auto finance managers who have at least a couple of years of experience working in a dealership.
Working as a salesperson helps you become familiar with the vehicle sales process, as well as finance and insurance products.
It also gives you some important connections in the automotive industry that you can later use to get an F&I position.
As a salesperson, take any opportunity you have to fill in for the auto finance managers and learn from them.
Step 4: Get Your Insurance License
Since auto finance managers also sell insurance products, most states require them to get and maintain a license to sell insurance.
Typically, you'll have to sit for an exam that covers your state's insurance regulations before you can get licensed.
States also require you to complete continuing education each year to maintain your license in good standing.
The continuing education helps keep you up to date on any changes to state insurance rules and regulations.
Step 5: Consider Getting an MBA
While it's not super common for auto finance managers to have MBAs, this advanced degree can definitely put you above the competition.
It might also entitle you to a position with greater supervisory authority.
Many business schools offer online MBA programs that you can complete while working full time as an auto finance manager.
With these programs, you can earn your degree without having to put your life or career on hold.
Learn About Becoming an Auto Finance Manager Today
If the automotive finance industry appeals to you, start your career as an auto finance manager by following these steps today.