agent Entrepreneur logo
MenuMENU
SearchSEARCH

How to Conduct a Menu Audit

Agents who train on the menu should also be able to audit one. Compliance guru lists the four critical components of a menu audit and the protection it can offer your dealer clients in the event of a legal challenge.

July 7, 2019
How to Conduct a Menu Audit

Agents who train on the menu should also be able to audit one. Compliance guru lists the four critical components of a menu audit and the protection it can offer your dealer clients in the event of a legal challenge. 

Photo by Natasaadzic via Getty Images

4 min to read


In our last ACE Space article, I discussed understanding the basis and need for dealer law. As a reminder, dealer law is the policies and procedures dealersimplement as a compliance best practice when the same rules are not required by state or federal laws.

Implementing and using a menu process to sell voluntary protection products is probably the best example of a dealer law.

Ad Loading...

Many agents have either recommended or sponsored a menu system. And like it or not, the dealer ofttimes looks to the agent to ensure the F&I managers are properly using the menu and ask for a menu audit.

A menu audit is more than looking in the deal file, seeing that a menu is in the deal, and reporting the percentage of menus in file. There are four components to a menu audit: disclosures, memorializevehicle sale, sell products, and paper trail.

As you read further, keep in mind that the use of a menu is optional. Outside of California and Minnesota, there are not state or federal statues outlining the disclosures and processes outlined below. Everything I offer up is consistent to any testimony in litigation support that these practices are considered industry best practices.

Industry-Standard Menu Process

In my testimony, I would outline the industry-standard menu process as a two-part process. Part One is a disclosure of the agreed upon sales terms and presentation of all available products. Let’s call this the “presentation page.”

Ad Loading...

Part Two is the affirmation of the final agreement, which may or may not include VPPs. This page should list the base payment terms, the agreed-upon products and prices, the products the customer declined, and the final payment terms.

While I refer to paper and paper trail, menus can be digital, if the digital form meets all four components and clearly demonstrates the customer’s optional acceptance of VPP.

Disclosures

These disclosures should be a part ofevery menu and should be vetted upfront before agreeing to a vendor’s menu. There should be statements affirming that:

  1. Purchase of any products areoptional and are not required toobtain financing.

  2. Some products can be purchased separately.

  3. The purchase or declination ofproducts will not affect the APR.

  4. Signature or initial lines next to base payment and final payment.

Ad Loading...

Memorialize Vehicle Sale

The first step in the menu sales process most agents teach is for the F&I manager to memorialize the vehicle sale or clear the top of the menu. The word-track I hear most often: “These are the terms and conditions you can take delivery of the vehicle today with approved credit.” 

The top of the presentation page should disclose the agreed to price, down payment, trade, rebates, and resulting amount financed. The base term, APR, and payment must also be disclosed. 

The customer should initial next to the base payment, providing the best proof in litigation that the customer was told what she could take delivery of the vehicle without the purchase of any VPP. Without the customer’s initials next to the base payment, the debate in court becomes a he said/she said and the dealer has a lesser chance of winning that argument.

Sell Products

Ad Loading...

There is ongoing chatter on some industry chat boards on the topic of menus and whether a menu is a sales tool or a compliance tool. Of course, it is both, so let’s focus on the sales tool aspect of menu disclosures.

You may or may not subscribe to the mantra of every available product offered to every customer. … But I do. 

In a menu audit, we expect to see every available productoffered on the presentation page. Once products are selected, we look to the “accept declination page” to validate the customer’s agreement to products purchased, the agreed-upon price, and the new monthly payment with products.

Paper Trail

The best defense I can lay out in litigation support is apaper trail that confirms the transaction’s transparency and thecustomer’s agreements to terms. 

Ad Loading...

Finally, a menu audit must confirm the product selection on the accept declination is consistent with the products purchased on contracts. This requires that: 

  1. The premiums are the same on all final documents.

  2. The APR is consistent between all final documents, with no need to disclose money factor on a lease.

  3. A new menu has been completed on a re-contract, even if the terms did not change.

I’ll admit that a thorough menu audit takes more time than confirming the percentage of deal files that contain a menu. Improved product sales and a compliant paper trail are therewards.

Good luck and good selling.

Topics:Industry
Subscribe to Our Newsletter

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →