As originally appeared in Auto Remarketing Canada, February 17, 2026
Author: Sarah Rubenoff
Canadian dealers, franchised and independent, are facing a volatile supply environment and compressed profit margins across multiple fronts. And more than ever, add-ons and F&I offerings are integral to dealership bottom lines. When done well, the business office often drives repeat sales while building trust and reinforcing its individual brands as a dealer.
Jake Stacey, executive vice president of sales and OEM performance at LGM Financial Services, shared with Auto Remarketing Canada how a more customer‑centric F&I approach turns the business office into a competitive advantage for winning and retaining business — one today’s dealers can combat the ongoing margin compression.
Stacey, on the front lines of LGM’s training, said the company’s offerings in this area have delivered results in both dealer confidence and per-VIN profit increases. Stacey says today, F&I is essential for driving purchase decisions and customer loyalty.
Canada’s dealers face an uncertain market
Market upheaval in the U.S. is “shocking to a lot of people,” said Stacey, and Canada’s dealers are figuring out where they stand. They are also facing margin compression, compounded by inventory volatility, and rising operational costs further intensify these pressures.
“People are more expensive, processes are more expensive, real estate’s more expensive. Just in general, operating the businesses becomes more of a pressure,” said Stacey.
Her strongest dealer clients are tightening execution and keeping things “real simple.”
“If we have fewer opportunities to sell fewer cars, then the cars that we do sell, we need to pay attention to the products per VIN, profit, all of those sorts of things,” said Stacey. “And then protecting every customer experience.”
For example, if a dealer is used to getting 100 customers and is only getting 70, the margin for error is much smaller, making any mistakes in the customer experience potentially more harmful.
“So, you cannot have missteps in those customer experiences in a market like this,” said Stacey.
Dealership rep increasingly drives buying decisions
Stacey said dealership reputation increasingly drives customer loyalty and purchase decisions—yet another reason the window for mistakes is smaller these days.
“Reputation is the shortcut customers use to decide where to buy,” Stacey said. “Trust drives traffic; experience drives repeat business; word-of-mouth does the rest.”
Word-of-mouth has not gone away in the automotive industry, Stacey said. In fact, she says it’s still fundamental.
“As a customer, I look at reputation online. I decide whether to buy based on that. Suppose there’s clear trust I can see online that’ll drive my traffic to the dealer. I will go in as a customer, and then the experience I have will drive my repeat business or not,” said Stacey. “And then my word-of-mouth and others’ word-of-mouth does the rest for reputation.”
Customer-centric F&I means ‘advising, Not selling’
When it comes to using the business office to foster these relationships and grow profitability, Stacey said it comes down to a change in perspective.
“For me, from what I’ve seen over the years, it means advising, not selling. You need to be curious. So if you’ve got fewer customers in front of you, you need to become far more curious about the customer you’re sitting with, asking intelligent, curious questions about their needs,” said Stacey.
For example, LGM provides customer analysis worksheets that serve as a sales tool focused on customer lifestyles. This survey includes questions such as: Do you have a dog? Do you play sports? How do you use your car?
“That curiosity and that advisory position are more important than ever,” said Stacey.
This is followed by presenting customers with options that more clearly add value by clarifying who they are and what their needs are.
“That’s really what customer-centric F&I means,” said Stacey.
Customer trust fueled by advisory role
LGM trainers see that taking an advisory role with customers in the business office builds trust, increases acceptance rates, and reduces chargebacks.
“They have fewer customers coming back and saying, ‘I’m really not sure what I did here. I really don’t understand what happened,” said Stacey. “That’s the worst experience you could have.”
The dealers LGM sees winning the market are those who assess their customers’ needs and turn F&I into a strength rather than the friction point it has historically been. Stacey said dealers’ No. 1 focus should be to ensure the majority of their service invoices reflect $0. That may sound counterintuitive, but she said there’s a strategy there. This means the customer likely purchased F&I add-ons and/or warranties in the business office.
“No one can afford a $3,200 bill in service right now. So, the dealers that do this well, they’re building that trust, they’re building higher acceptance rates, fewer chargebacks, and seeing it as a strength and then a value-add to each of their customers,” said Stacey.
For dealers looking to increase profitability by rushing as many cars through the doors as possible, Stacey said the outlook has been bleaker.
“They’re hurrying the process, they’re rushing deliveries, they’ve got inconsistent disclosures to customers. They’re not being curious,” said Stacey. “What that’s leading to is lower penetration, way more complaints from their customers, and ultimately long-term brand damage.”
For dealers struggling to succeed in a difficult landscape, Stacey said they have a real opportunity in F&I to perfect and standardize the customer experience.
“Ask the same questions the same way to every single customer. Do not cut corners; invest in training your people. Don’t hire someone and throw them in an office. You need to invest in training your people,” she said. “Most importantly: Slow down and listen.”
The experience in the business office is often the factor that directly determines whether a customer returns.
“Again, it’s not the car purchase, it’s F&I, the experience they have in that office … And the customers that are never returning are going to tell everyone who will listen why that is,” said Stacey. “It’s not easy at all. But it takes commitment and dedication. And when it’s done properly, it positions a dealer in a completely different light,” she said.
LGM is seeing dealers improve profit-per-VIN and stabilize earnings through F&I without sacrificing customer trust or reputation.