White paper on e-contracting of aftermarket products on a common platform

1. An Intersection Technologies, Inc
White Paper
Intersection Technologies, Inc
th
235 West 7 Street
San Pedro, CA 90731
1-310-241-1500 EXT 2123
WWW.FandIExpress.com
A Common Platform for E-Contracting
For the common good of all
F&I aftermarket administrators
By Brian Reed
President/CEO
Intersection Technologies, Inc.
Intersection Technologies, Inc.

2. solution than dealer facing company specific
Introduction proprietary systems.
Intersection Technologies Inc. has
it’s ear to the market and has The Common Platform approach has been
determined that the F&I used by many different industries to solve
aftermarket industry is ready to similar type problems. The airline industry
strategically move to e-contracting. recognized the benefits of sharing a common
Furthermore, the majority of system for reservations resulting in the
administrators clearly understand formation of Sabre Systems. The ATM
that the #1 critical success factor is… market place initially had each bank having
ease of use by the dealer. If e- it own ATM’s and networks. Now you can
contracting is NOT an easy process, access almost any bank from any ATM
dealers will default to how they have worldwide. The notion that an aftermarket
been preparing aftermarket F&I administrator can have a competitive
contracts for the last 30 years. An advantage by a proprietary dealer interface
easy process for the dealers has is flawed when the U.S. administration
several key components: marketplace is fragmented with hundreds of
 Integration of data from their administrators and dealers utilizing 5-10
Dealer Management System administrators for the sale of their products.
(DMS), Sales Menu, or F&I
System.
 One place to go to e-contract
all of their aftermarket
products.
 Processes and technology in
place to ensure that when a
contract or registration is
completed and signed by the Common Platform
At Point of Sale
customer, that it is correct.
What if each Bank needed to have its own ATM
 Flexibility on how the Machines?
process can take place at the
dealership because each
dealership is different.
The key to moving the industry is The only way for any one administrator to
not technology, but the get 100% of its contracts prepared fully
implementation of easy work flow electronic is if the industry gets to 100%. A
processes at the dealership. The company that has the best individual dealer
technology is in place today for e- interface can achieve its goal of 100% e-
contracting; the benefits to all contracting only if the industry as a whole
stakeholders are well understood. achieves 100% e-contracting.
Finally, most administrators have
experimented with different
approaches and have determined that
“Common Platforms” are a better
April 2010

3. The Problem operational challenges. In reality, if a dealer
does business with 5 different administrators
As aftermarket F&I administrators they are all basically trying to get the same
have been attempting to move their 50 data fields. Integration to dealers DMS is
business from a manual form based costly, difficult or both. Do aftermarket
process to an electronic contracting administrators really want to have resources
process, most have been focused on focused on DMS integration or manage a
the development of proprietary third party to do it for them?
dealer interfaces via their web site.
The problem is that most dealerships
do business with multiple Everyone Uses the Same Data – Why Pay for it 6 Times?
administrators which results in
dealers having to go to multiple web Dealer # 1 # of Products
Sold Integration Costs Cost/Product Sold
sites and have multiple user names Aftermarket Administrator # 1 50 $ 50.00 $ 1.00
30 $ 50.00 $ 1.67
and passwords in order for them to e- Aftermarket Administrator # 2
Aftermarket Administrator # 3 60 $ 50.00 $ 0.83
contract their aftermarket products. Aftermarket Administrator # 4 60 $ 50.00 $ 0.83
25 $ 50.00 $ 2.00
Dealers do not like this process and Aftermarket Administrator # 5
Aftermarket Administrator # 6 10 $ 50.00 $ 5.00
furthermore, the agents that sell to Total 235 $ 300.00 $ 127.65
the dealers do not like the process. Dealer # 2
Common Platform 235 $ 100.00 $ 0.42
The net result is a complicated
process that dooms them to the use
of existing processes of paper forms
into impact printers rather than Why not be a part of a common platform
completing e-contracts. that pulls the data once for all administrators
to use?
E-Contracting Today The other challenges represent the
Dealership Aftermarket Administrator
processes, resources, and costs associated
Dealership Aftermarket Administrator
with how business is done today related to
Dealership Aftermarket Administrator forms printing, forms distribution, data
Dealership Aftermarket Administrator entry, risk management, etc. There is a much
Dealership Aftermarket Administrator better way for administrators to do business
Dealership
Aftermarket Administrator than how it is done historically.
Dealership
Aftermarket Administrator
Multiple websites, multiple user
names, multiple passwords,
multiple processes
This also means that many of the
administrators, in an attempt to make
it an easier dealer process,
implement their own integration into
the dealers DMS/Menu which
creates an added cost and additional

4. The Benefits of E-Contracting benefits. F&I Express has had extensive
discussions with agents and have garnered
Administrators benefit more than any their full support of the F&I Express
other stakeholder if the aftermarket platform. Agent benefits include:
F&I product market could move to
an e-contracting solution. There are  Real time reporting to know what
soft benefits and very tangible, product is being sold at each
quantifiable benefits. In fact, in using dealership.
just the tangible benefits, it would  Reduced error rates, which means
result in a positive ROI for less time having to solve problems
administrators. Benefits include:  Eliminate forms delivery which
means smaller car trunks needed.
 Eliminates the printing of  Greater dealer CSI comes from a
forms. better, more streamlined process for
 Eliminates the distribution the dealer.
costs of forms and allows for  Allows agent to focus on more
real time “pull and “value added” activities such as
replacement” of forms. training on product knowledge and
 Eliminates data entry. sales presentations.
 Reduces error rate of Ultimately the dealer and acceptance by the
contracts to be processed. F&I manager is the #1 critical success
 Allows for factor. If the dealer does not buy in it does
Administrator/Agent to know not matter what the benefits to the
when a dealer sells a product administrator and agent are – the program
to a customer – real time! will not work.
 Allows Administrator/Agent
to minimize losses by having The e-contracting process does not only
transparency into dealer have to be better than the process today for a
receivables. dealer, but much better. Dealers are a
 Has the ability for online creature of habit and even positive changes
payment remittance. take a while for some dealers to accept.
 Robust real time customized Benefits to a dealer of an e-contracting
reporting. solution on a common platform include:
 Enhances dealer and end  No more paper forms to worry about
consumer CSI. or having to call the
For most aftermarket F&I product agent/administrator to “overnight’ a
companies in the US, agents are package of forms because they
utilized as the distribution strategy. cannot find any.
The agent really becomes the main  Always using the right form for the
interface between the dealer and the right product being sold.
administrator. For an e-contracting  Streamlined work flow process that
solution to be effective, agents have allows dealers an easy e-contract
support and buy into the program. process
For agents to buy in they have to see

5.  Reduced error rates on concept of a common platform needs to be
contracts which mean implemented and accepted in the market
eliminating the calls from place assuming it addresses all the key
agent or administrator to re- components of an ultimate solution.
contract the customer or to
collect more money. The Solution
As much as e-contracting of
aftermarket products on a common A common platform for e-contracting needs
platform results in better processes to address and solve a number of issues
for the dealer, it is only a part of the including:
final solution for the dealer.  Dealer goes to one place for ALL
Technology is in place today to aftermarkets products.
create the new E-F&I Office of  Data to pre-populate the forms is
tomorrow where everything is done pulled from dealers DMS/Menu.
electronically. One of the greatest  Dealer has a common place to access
benefits of e-contracting of each aftermarket product, but each
aftermarket products is a precursor to aftermarket company has logic in
what the F&I office will be moving place to ensure process is in place to
to in the future. minimize error rate.
 Platform is menu/DMS agnostic
 Easy User Interface for dealer
E-F&I Office of the Future  Recognizes role of agent and
Credit
Application
provides value to making the agent’s
• Implemented
• Some Progress
• Little Progress
E-Registration
Submittal
Credit
job easier.
 The benefits of electronic contracting
Title/Reg Application
Decisioning
E-F&I
Vision
are at least double the costs of
Electronic
Aftermarket
Contracting
Contract
Validation implementing solution.
Electronic
Retail/Lease
Contracts
This common platform approach allows for
consistent and easy dealer processes while
allowing each administrator to differentiate
If the F&I office at a dealership is itself via its distribution, products, services,
moving to all electronic processes, and pricing.
the questions for administrators are:
 When, not if, do electronic The critical success factor is developing
processes get implemented? flexible and easy processes for dealers that
 Do I want to have a allows for the fact that dealers do business
proprietary dealer interface or differently and you cannot lock a dealer in to
participate in common one process or one specific sales menu.
platforms in the market?
Based on the feedback from most of
the aftermarket administrators, the
answer is to really achieve 100% e-
contracting in the market place. The

6. The end result is a process that Things to keep in mind in moving
allows the dealers a common access forward:
point for all administrators while 1. Whatever you are doing today that
allowing for customized connections works, keep doing it.
to each administrator as depicted 2. Ensure that the process is an easy
below: process for the dealer – having a
dealer go to multiple web sites to
prepare contracts for their
administrators is NOT an easy
F&I Express Common Platform process.
Dealership Aftermarket Administrator
3. Develop a strategy for your company
Dealership Aftermarket Administrator based on where your processes are
Dealership Aftermarket Administrator today and to clearly calculate the
Dealership
Dealership
Aftermarket Administrator
economic benefits of e-contracting
Aftermarket Administrator
Dealership
Aftermarket Administrator
and ensure that you have
Common Platform
Dealership for dealers –
customized Aftermarket Administrator
accountability within your
connection to
administrators. organization to achieve your benefit
projections.
4. Develop your tactical plan of the
Transition to Final Solution steps to get to e-contracting,
including participating in common
An aftermarket administration platforms such as F&I Express.
company that wants to move from a 5. Ensure employees and agents
traditional form based process to a understand the company’s
full e-contracting model needs to commitment to e-contracting.
look at the move strategically versus 6. Recognize that the biggest challenge
“another IT project.” There is not a is not from technology but from a
magic bullet that can make business change management process on
go to 100% electronic over night. behalf of your dealers, agents, and
The key is to make a company employees.
strategic decision to move from 7. Be patient – and always listen to
wherever you are in your forms your customers as you transform
process and map out an action plan your business from a manual form
to begin the journey. based process to 100% e-contracting.

7. F&I Express is very flexible in how it works with various administrator. We have the ability to
work with companies who have invested heavily in e-contracting processes as well as those who are
exploring how to best do e-contracting. The company offers various models in how it works with
administrators including:
 Turn-Key Solution – F&I Express can handle all parts of e-contracting from development
of ratings processes, creation and management of forms, electronic contracting, reporting,
and PDF contracts with “wet” customer signatures.
 F&I Express Direct – Leverages fully the ratings and e-contracting capabilities that an
administrator might have today. The F&I Express platform acts as the common dealer
interface, collects the data, validates the data, and then via web services, send data to the
administrator who then in turn, creates a e-contract/PDF and sends back to the dealer via
F&I Express.
 Private Label – Provides various technology and technical services to administrator on a
private label basis.
 Consulting and IT Development – Custom work with administrators in solving business
challenges by the use of process redesign and technology.
Any aftermarket administrator, agent, or dealer who is interested in learning more about the F&I
Express platform should call 1-888-923-8368 X 2123