By David Lewis
Ask your business manager if he or she knows this feeling. They're making a service contract presentation and can just feel and sense the customer squirming. It is very uncomfortable for both them and the customer. The customer doesn't want to be ignorant and stop them, and your business manager still has to make the presentation, all along having a defeated attitude.
This is not the best situation for success selling any F&I products. Check your F&I department's service program and insurance penetrations. Chances are, the percentages of non-penetration are directly from this circumstance.
This can be changed and all it takes is some examination of the question, "Why?" Why are customers uncomfortable listening to a presentation of a product that they don't even know anything about and that may be extremely beneficial to them?
If we understand the psychology of customers' defense mechanisms and their perceptions of what they can expect when put into most selling situations, we can then better understand why they are uncomfortable and how to reduce seller/buyer tensions.
Let's examine the "whys." First, what is a customer's perception of what your business manager really is? The customer perceives them as a salesperson and a salesperson is someone who tries to sell you something for profit.
What is a customer's perception of what a salesperson will do to make a sale for profit? The answer is anything, especially pressure. Why? Because it is in the Salesperson's best financial interest if the customer buys (regardless if it is something good for the customer or not), and a waste of the Salesperson's time if the customer does not.
If you can truly say your F&I Manager is a trained professional, then none of the above customer perceptions should apply to him or her, and they need to let the customer know it! This will allow them to relax and be more receptive to the presentation, which is crucial to getting good objections.
Professional salespeople do not need to use pressure. They believe, and are correct, in feeling they are offering a valuable product or service. They are prepared to respond and do respond to customers' questions and objections logically and intelligently so the customer has all the right information before being expected to make a decision.
Also, they know that regardless of the value of their product or service it will not be for everyone. They know that making a certain number of presentations is required in order to make a certain number of sales. Consequently, professional salespeople are not frustrated about spending a sufficient amount of time with a customer without making the sale, therefore do not show frustration to the customer.
How does your business manager let the customer know they are unique, different and more professional than any other dealership personnel they've encountered? We have found there are two very simple ways for this to be accomplished.
First, we want the customer to feel that we are letting them know what is available to them, what are the features, advantages and benefits, and what it will cost, because they deserve to know. Secondly, when we address their issues (objections) we are only providing them with all the information they should have before making a decision, whether to buy (enroll) or not to buy (enroll), because they deserve to know this also. Note: I prefer to use psychological verbiage, i.e., I believe customers would much rather "enroll in a service program" than "buy an extended warranty."
So how do we get this across to the customer. It's simple. Just say it.
If your business manager senses the customer is feeling uncomfortable or threatened during any of your presentations, simply have them say, "Mr. Jones, Mrs. Jones, by the way the reason I am presenting this program to you is because Mr. Lewis, the dealer, insists that every customer knows what is available to them, what it will and won't do for them, and the cost. He feels you deserve to know, then make your decision as to its benefit or lack of benefit to you."
A tremendously unique way to get this concept to the forefront is something I recommend every business manager do, which many of my clients have done with great success, and that is have a small engraved plaque on their desk that says, "OUR CUSTOMERS DESERVE TO KNOW!," and below that your signature engraved.
When your business manager tells the customer you insist that every customer be told what is available to them, what it will provide, etc., as suggested above, they then can point to the plaque and reinforce their statement. But, most of the time the customer will ask, "what does that mean, the customer deserves to know what?" This is perfect, as your business manager will be able to use the verbiage even before he or she begins their presentation.
Obviously, even if the customer has some interest after the presentation, they will have objections (requests for more information), and your business manager should be prepared to respond to their objections and counter their negative thoughts with positive thoughts. This is not pressure, it is logical and intelligent persistence, which the customer also deserves. If the responses to their negative thought processes (objections) are in fact logical and intelligent, then you are doing nothing more than providing the customer with more information to digest before making their decision, whether to enroll or not to enroll.
Tell the customer this, and it should take away their resistance. The selling process will then become more like a non-confrontational discussion and be perceived by the customer as a comfortable process that has their best interest in mind.
Remember, no customer likes to be sold anything. They would much prefer to make a decision to purchase. Create that comfort level with the customer and develop that bond and trust by taking away that feeling of personal gain, and making it one of mutual respect.
Good Stuff.
AFI
To measure a "well-run" automotive F&I Department, visit: http://www.AutoFinanceInsider.blogspot.com
Saturday, November 8, 2008
Menu "Closing" ... Not Menu "Selling"
by Ron Martin
My preferred approach to selling F&I is want I call the Hybrid Menu Method. It is a process of menu closing, rather than menu selling. The difference is that menu closing is a planned presentation of selling the features and benefits of F&I products and using the menu as a way to get customers to decide on the products they want to buy. It utilizes the advantages of menu selling: An organized selling approach and an alternative close (would you like a, b, c or d?), and recognizes the weaknesses (trying to get the customer to focus on the presentation and not the payments). This menu closing technique was derived from other F&I selling approaches, including step selling, assumptive selling and traditional menu selling.
The Hybrid Menu Closing Method:
The first step toward customer satisfaction and high F&I profits is preparation. This begins prior to the customer walking into the finance office. The F&I professional should have the deal completely loaded into the computer and all necessary forms pulled. You need to set yourself up for success, and not limit yourself by deciding, even if it’s subconsciously, which products you are likely to sell. Your expectation needs to be that you are going to sell all the products.
Once you are completely prepared, which includes making sure your office is organized and professional looking, it’s time to get the customer. Yes, go out and get customers even if it means walking to the used-vehicle building across the lot. This gives you a chance to establish a little rapport while you are escorting them to your office. It also ensures that customers aren’t brought to you until you are ready for them.
When the customers are settled in your office, begin like this:
Mr. and Mrs. Doyle, I’m sure you want to get on with your day with your new automobile, so I’m going to make sure I get your legal documents completed as efficiently as possible. I have your information completely loaded into the computer and all the necessary documents here for your review, but before we sign the paperwork, I’d like to take a couple quick minutes of your time to thank you for your business. My dealer actually requires I do it. We understand you had a choice about where to purchase your vehicle and we are glad you chose us. What is most important to us is that you’ll chose us the next time you need an automobile, that you will be able to send your family and friends here, that you use our award-winning service department and our body shop and parts department. We want to be your choice for all your automotive needs.
We have found that whether any of this happens is partly a result of how happy you are with your automobile, but mostly it is a result of how you were treated during the sales process. My part of the process is the financial process. When you leave here I would like you to be able to say that I was prompt, efficient and straightforward, but most importantly, that I have described the financial benefit packages that are available to you. And, I would like to take a couple minutes of your time to review those two benefits.
At this point, I will normally lead with the service contract.
I’d like to begin by asking you a question, Mr. and Mrs. Doyle. How would you like to prevent having to pay most future repair bills for the next five years?
This question is meant to break preoccupation and get the customer to think or say, “Why must I listen to you?”
I then proceed with a planned presentation where I give customers some information, ask a question and then listen to their response. This will eventually lead to a closing question designed to get customers to make a decision.
Mr. and Mrs. Doyle, there are two ways you can pay for this: You could pay $1,695 cash or you can include it in your monthly payments which would be $29 per month additional, plus your interest charges, whichever you prefer.
Then I wait for a response. The customer will answer in one of three ways:
1. Give you an objection or say no to your response. You should handle that objection and re-close.
2. Say yes to your offer.
3. Ask the magic question: “What does that make my payment?”
Your response should be:
Good question. I’ll get to that in just a minute. Let me briefly describe the other benefit and then I will break out your options to the penny.
Remember, they already know the payment, which they received on the sales floor.
The other benefit package available to you is the loan protection package. It includes: life insurance, accident and health insurance options.
You will then describe the features and benefits of these options. Once you have finished this description, it’s time to menu close.
Mr. and Mrs. Doyle, here is a list of payment options to help you make your decision.
This is the first point that customers view the choices for their decision and pick from the menu. Once they have made an informed decision, you can step sell them to another product choice.
This way of presenting the menu gives you the best assurance that customers have listened to all product presentations before they choose their options. It gives the F&I manager a comfortable approach to aggressive selling, by limiting the bumping that step selling creates. The approach of, “I have one more thing to talk to you about,” wears out the F&I manager and customers.
Give Products the Win-Win Test
If you’re going to add another product, make sure it first passes the win-win test. If it’s a win for the dealership and the customer, then arrange it within your benefit packages. For example, a maintenance and appearance package can be presented on a lease.
The appearance package also sells very well in a two-step process at point of sale. Incorporate it by transitioning it with the we-owe (or due bill).
Mr. and Mrs. Doyle, it shows here that we will have the vehicle filled with gas and cleaned up prior to delivery. It doesn’t show that you took advantage of the 20-percent discount that you can get if you purchase the appearance package right here at the dealership. Did the salesperson happen to mention that? How would you like to keep your automobile looking new and also help maintain its value?
This transition leads you right into your presentation without the customer feeling any pressure.
Choosing the Best Menu
Many dealers tell me, “We need to menu sell in the F&I department.” When I ask them why, they almost always respond the same way: “I want to be compliant.”
I agree that they should use a menu, but it isn’t necessary to be compliant. You can’t be any more compliant as long as the retail installment contracts and lease agreements follow Regulation Z, Truth in Lending and Regulation M, Truth in Leasing requirements, respectively. A menu can reinforce compliance if used properly, but can promote payment packing if it’s not.
Is profit and compliance better served with an electronic or handwritten menu? If I were a dealer, I would definitely invest in an electronic menu. It reinforces compliance and gives F&I managers the flexibility they need to maximize profits. Why? F&I sales are subject to change when the customer arrives and during the presentation. The options you offer a customer, using menu closing, will vary depending on the customer’s responses to the features and benefits presentation. For example, if customers don’t want the service contract after you have handled their objections, you would be better served adjusting the options you are showing them. You might offer them 30-day retro and 14-day retro accident and health options to choose from.
The flexibility of an electronic menu allows you to change options on the fly, while a handwritten menu doesn’t. The electronic menu also gives the F&I professional the ability to create a new menu when customers change the amount of their down payment at the time of delivery.
From a compliance perspective, a handwritten menu can expose a dealer to payment packing. This happens when F&I managers give themselves a cushion on the base payment to make it look like the products don’t cost as much as they actually do. An electronic menu eliminates this from happening, since the software always determines the exact base payment.
(This is from 2006, and I still use this presentation today).
AFI
To measure a "well-run" automotive F&I Department, visit: http://www.AutoFinanceInsider.blogspot.com
My preferred approach to selling F&I is want I call the Hybrid Menu Method. It is a process of menu closing, rather than menu selling. The difference is that menu closing is a planned presentation of selling the features and benefits of F&I products and using the menu as a way to get customers to decide on the products they want to buy. It utilizes the advantages of menu selling: An organized selling approach and an alternative close (would you like a, b, c or d?), and recognizes the weaknesses (trying to get the customer to focus on the presentation and not the payments). This menu closing technique was derived from other F&I selling approaches, including step selling, assumptive selling and traditional menu selling.
The Hybrid Menu Closing Method:
The first step toward customer satisfaction and high F&I profits is preparation. This begins prior to the customer walking into the finance office. The F&I professional should have the deal completely loaded into the computer and all necessary forms pulled. You need to set yourself up for success, and not limit yourself by deciding, even if it’s subconsciously, which products you are likely to sell. Your expectation needs to be that you are going to sell all the products.
Once you are completely prepared, which includes making sure your office is organized and professional looking, it’s time to get the customer. Yes, go out and get customers even if it means walking to the used-vehicle building across the lot. This gives you a chance to establish a little rapport while you are escorting them to your office. It also ensures that customers aren’t brought to you until you are ready for them.
When the customers are settled in your office, begin like this:
Mr. and Mrs. Doyle, I’m sure you want to get on with your day with your new automobile, so I’m going to make sure I get your legal documents completed as efficiently as possible. I have your information completely loaded into the computer and all the necessary documents here for your review, but before we sign the paperwork, I’d like to take a couple quick minutes of your time to thank you for your business. My dealer actually requires I do it. We understand you had a choice about where to purchase your vehicle and we are glad you chose us. What is most important to us is that you’ll chose us the next time you need an automobile, that you will be able to send your family and friends here, that you use our award-winning service department and our body shop and parts department. We want to be your choice for all your automotive needs.
We have found that whether any of this happens is partly a result of how happy you are with your automobile, but mostly it is a result of how you were treated during the sales process. My part of the process is the financial process. When you leave here I would like you to be able to say that I was prompt, efficient and straightforward, but most importantly, that I have described the financial benefit packages that are available to you. And, I would like to take a couple minutes of your time to review those two benefits.
At this point, I will normally lead with the service contract.
I’d like to begin by asking you a question, Mr. and Mrs. Doyle. How would you like to prevent having to pay most future repair bills for the next five years?
This question is meant to break preoccupation and get the customer to think or say, “Why must I listen to you?”
I then proceed with a planned presentation where I give customers some information, ask a question and then listen to their response. This will eventually lead to a closing question designed to get customers to make a decision.
Mr. and Mrs. Doyle, there are two ways you can pay for this: You could pay $1,695 cash or you can include it in your monthly payments which would be $29 per month additional, plus your interest charges, whichever you prefer.
Then I wait for a response. The customer will answer in one of three ways:
1. Give you an objection or say no to your response. You should handle that objection and re-close.
2. Say yes to your offer.
3. Ask the magic question: “What does that make my payment?”
Your response should be:
Good question. I’ll get to that in just a minute. Let me briefly describe the other benefit and then I will break out your options to the penny.
Remember, they already know the payment, which they received on the sales floor.
The other benefit package available to you is the loan protection package. It includes: life insurance, accident and health insurance options.
You will then describe the features and benefits of these options. Once you have finished this description, it’s time to menu close.
Mr. and Mrs. Doyle, here is a list of payment options to help you make your decision.
This is the first point that customers view the choices for their decision and pick from the menu. Once they have made an informed decision, you can step sell them to another product choice.
This way of presenting the menu gives you the best assurance that customers have listened to all product presentations before they choose their options. It gives the F&I manager a comfortable approach to aggressive selling, by limiting the bumping that step selling creates. The approach of, “I have one more thing to talk to you about,” wears out the F&I manager and customers.
Give Products the Win-Win Test
If you’re going to add another product, make sure it first passes the win-win test. If it’s a win for the dealership and the customer, then arrange it within your benefit packages. For example, a maintenance and appearance package can be presented on a lease.
The appearance package also sells very well in a two-step process at point of sale. Incorporate it by transitioning it with the we-owe (or due bill).
Mr. and Mrs. Doyle, it shows here that we will have the vehicle filled with gas and cleaned up prior to delivery. It doesn’t show that you took advantage of the 20-percent discount that you can get if you purchase the appearance package right here at the dealership. Did the salesperson happen to mention that? How would you like to keep your automobile looking new and also help maintain its value?
This transition leads you right into your presentation without the customer feeling any pressure.
Choosing the Best Menu
Many dealers tell me, “We need to menu sell in the F&I department.” When I ask them why, they almost always respond the same way: “I want to be compliant.”
I agree that they should use a menu, but it isn’t necessary to be compliant. You can’t be any more compliant as long as the retail installment contracts and lease agreements follow Regulation Z, Truth in Lending and Regulation M, Truth in Leasing requirements, respectively. A menu can reinforce compliance if used properly, but can promote payment packing if it’s not.
Is profit and compliance better served with an electronic or handwritten menu? If I were a dealer, I would definitely invest in an electronic menu. It reinforces compliance and gives F&I managers the flexibility they need to maximize profits. Why? F&I sales are subject to change when the customer arrives and during the presentation. The options you offer a customer, using menu closing, will vary depending on the customer’s responses to the features and benefits presentation. For example, if customers don’t want the service contract after you have handled their objections, you would be better served adjusting the options you are showing them. You might offer them 30-day retro and 14-day retro accident and health options to choose from.
The flexibility of an electronic menu allows you to change options on the fly, while a handwritten menu doesn’t. The electronic menu also gives the F&I professional the ability to create a new menu when customers change the amount of their down payment at the time of delivery.
From a compliance perspective, a handwritten menu can expose a dealer to payment packing. This happens when F&I managers give themselves a cushion on the base payment to make it look like the products don’t cost as much as they actually do. An electronic menu eliminates this from happening, since the software always determines the exact base payment.
(This is from 2006, and I still use this presentation today).
AFI
To measure a "well-run" automotive F&I Department, visit: http://www.AutoFinanceInsider.blogspot.com
Wednesday, November 5, 2008
Wednesday, September 24, 2008
Customer With a Car Fetish
Our dealership has a very good repeat customer who has a car fetish. Every 4-6 months he gets tired of his current vehicle and wants a different one. Getting a new vehicle twice a year has been going on his whole life by looking at his credit report (29 auto loans – all classified individual loans).
I’ve seen him in fast vehicles such as a Ford Mustang Shelby, Pontiac GTO, Dodge Ram SS/T. Lately he took advantage of some Toyota specials on the Tundra and got a loaded extended cab 4X4. Due to its gas mileage, he traded that on an Infiniti G37 coupe.
Each time he finances the vehicle at the MAX advance for 72-84 months while rolling in a staggering amount of negative equity.
Usually, to get a deal done, the dealership has to take a mini-deal and ALL of my negotiation skills with the banks just to help this guy with his impulse purchases and roll a car – because of his negative equity.
Sometimes we couldn’t trade him out with $23,000 of negative. He would go home, think about his decision for a month or two, and come back with a few thousand down at always the right time of the month for us to give a car away.
The funny thing is that he understood the meaning of and always purchased GAP on each vehicle. He won’t be sorry if he ever has to use the benefits.
Obviously, with each new vehicle purchased from my dealership, I would have to cancel the GAP policy from the previous vehicle.
After doing some math, this customer is single-handedly responsible for about 15% of the total GAP cancellations processed in the 4.5 years I have been in F&I at my present dealership.
True Story (He just left the dealership).
I’ve seen him in fast vehicles such as a Ford Mustang Shelby, Pontiac GTO, Dodge Ram SS/T. Lately he took advantage of some Toyota specials on the Tundra and got a loaded extended cab 4X4. Due to its gas mileage, he traded that on an Infiniti G37 coupe.
Each time he finances the vehicle at the MAX advance for 72-84 months while rolling in a staggering amount of negative equity.
Usually, to get a deal done, the dealership has to take a mini-deal and ALL of my negotiation skills with the banks just to help this guy with his impulse purchases and roll a car – because of his negative equity.
Sometimes we couldn’t trade him out with $23,000 of negative. He would go home, think about his decision for a month or two, and come back with a few thousand down at always the right time of the month for us to give a car away.
The funny thing is that he understood the meaning of and always purchased GAP on each vehicle. He won’t be sorry if he ever has to use the benefits.
Obviously, with each new vehicle purchased from my dealership, I would have to cancel the GAP policy from the previous vehicle.
After doing some math, this customer is single-handedly responsible for about 15% of the total GAP cancellations processed in the 4.5 years I have been in F&I at my present dealership.
True Story (He just left the dealership).
Thursday, September 18, 2008
F&I Numbers
This is a column re-printed by permission from Motorcycle Product News. It is interesting to see the actual F&I numbers published. I wonder about the product sales process in the F&I department of a mortorcycle dealership verses automotive.
Life and Disability insurance probably sells well, though I could really see a strong presentation blowing the whole deal - just use the old "put your eye out close". Yes, a motorcycle scares me to death. Give me a big safe SUV!
By Steve Jones
Link to original article:
At GSA we track benchmarks through our involvement with dealer groups such as the Best Operators Club. Some of the members have kindly consented to let us share their numbers from our real-time, web-based data reporting system.
In this column we're going to review the July F&I numbers for one of our member dealers and the related TBOC averages. In 2007, this dealer sold 800 motorcycles, ATV and UTV units, plus 140 trailers and 39 boats. The dealership is located in a town of 22,000 on the outskirts of a city of 180,000 people.
In Chart 1 we see that they have only one F&I person. For July, they captured 90 percent of the financed deals. They had an approval rate of 52 percent. Tracking and following up on "approved but did not buy" deals is also very important. Did they buy elsewhere? Why? What could you have done to get these deals?
Chart 1
LINGO:
CY: current year
PVS: per vehicle sold
TBOC: average of the top five BOC members in this category
In Chart 2 you can see that their overall July finance penetration was just under 60 percent. This is short of the benchmark of 70 percent, but not bad. If you don't get the financing, it is very hard to maximize add-on sales of F&I and P&A products.
Last year at this time, this dealer was averaging just over $300 PVS in F&I GP. This year he has jumped to over $600 PVS! How did he accomplish this? According to the dealer, there were two main reasons: They hired a former auto F&I person who was tired of the long hours and pressure. The five-day week in this powersports dealership was just what he was looking for.(It should be noted that there are quite a few good people leaving the auto business — sales mangers and salespeople as well as F&I managers. This is a good time to take advantage of their current business situation.) They implemented a structured selling process with the correct turnover to the business (F&I) office. They also utilized a four-square worksheet process, and always asked for a down payment amount. This can often be converted to F&I products sales if customers are approved for little or no down payment.
Chart 2
Note: Our data reporting and analysis system is available for any dealership to use for a nominal fee. If you want more info on the Voyager IV data reporting system or BOC, please e-mail steve.jones@gartsutton.com or visit our website at www.gartsutton.com. In the trend analysis in Chart 3, you can clearly see what happened when they hired the right person for the F&I position and implemented the correct processes. In a very short time they were able to nearly double their F&I income.
"If you do not enforce the sales process, the four-square and the consistent turnover to F&I, it is very difficult to achieve big numbers in the business office," notes the dealer. Obviously, having a fully trained and experienced F&I person is also crucial to maximizing your F&I potential. In today's highly-competitive market, it is essential to have an effective F&I department to pick up the margins.
Chart 3
Back to the F&I blog homepage:
Life and Disability insurance probably sells well, though I could really see a strong presentation blowing the whole deal - just use the old "put your eye out close". Yes, a motorcycle scares me to death. Give me a big safe SUV!
By Steve Jones
Link to original article:
At GSA we track benchmarks through our involvement with dealer groups such as the Best Operators Club. Some of the members have kindly consented to let us share their numbers from our real-time, web-based data reporting system.
In this column we're going to review the July F&I numbers for one of our member dealers and the related TBOC averages. In 2007, this dealer sold 800 motorcycles, ATV and UTV units, plus 140 trailers and 39 boats. The dealership is located in a town of 22,000 on the outskirts of a city of 180,000 people.
In Chart 1 we see that they have only one F&I person. For July, they captured 90 percent of the financed deals. They had an approval rate of 52 percent. Tracking and following up on "approved but did not buy" deals is also very important. Did they buy elsewhere? Why? What could you have done to get these deals?
Chart 1
LINGO:
CY: current year
PVS: per vehicle sold
TBOC: average of the top five BOC members in this category
In Chart 2 you can see that their overall July finance penetration was just under 60 percent. This is short of the benchmark of 70 percent, but not bad. If you don't get the financing, it is very hard to maximize add-on sales of F&I and P&A products.
Last year at this time, this dealer was averaging just over $300 PVS in F&I GP. This year he has jumped to over $600 PVS! How did he accomplish this? According to the dealer, there were two main reasons: They hired a former auto F&I person who was tired of the long hours and pressure. The five-day week in this powersports dealership was just what he was looking for.(It should be noted that there are quite a few good people leaving the auto business — sales mangers and salespeople as well as F&I managers. This is a good time to take advantage of their current business situation.) They implemented a structured selling process with the correct turnover to the business (F&I) office. They also utilized a four-square worksheet process, and always asked for a down payment amount. This can often be converted to F&I products sales if customers are approved for little or no down payment.
Chart 2
Note: Our data reporting and analysis system is available for any dealership to use for a nominal fee. If you want more info on the Voyager IV data reporting system or BOC, please e-mail steve.jones@gartsutton.com or visit our website at www.gartsutton.com. In the trend analysis in Chart 3, you can clearly see what happened when they hired the right person for the F&I position and implemented the correct processes. In a very short time they were able to nearly double their F&I income.
"If you do not enforce the sales process, the four-square and the consistent turnover to F&I, it is very difficult to achieve big numbers in the business office," notes the dealer. Obviously, having a fully trained and experienced F&I person is also crucial to maximizing your F&I potential. In today's highly-competitive market, it is essential to have an effective F&I department to pick up the margins.
Chart 3
Back to the F&I blog homepage:
Friday, September 12, 2008
Paystub
This definitely wins the grand prize for the best looking paystub I've seen:
You gotta wonder why some people have bad credit.
Back to blog homepage
You gotta wonder why some people have bad credit.
Back to blog homepage
Thursday, September 11, 2008
Capital One survey: Americans don't know loan rates
.
A majority (61 percent) of Americans who currently have auto loans do not know the interest rate they are paying on their loan, a new survey from Capital One Financial Corporation suggests. In a challenging economy, when saving money is particularly important, many consumers may be paying more than necessary and could benefit from a lower interest rate and a lower monthly loan payment by refinancing, the company notes.
Read the rest of the article here
Are you kidding me???
Where is Capital One getting the data for this survey?
I get beat up all the time over the interest rates. The majority of my customers want to know exactly what the rates are before any products are even mentioned.
Does this article suggest that if the customer falls into the sub-prime catagory, the F&I manager might not be practicing proper disclosure? By reading this article, it appears so 61% of the time - right?
Would Capital One be admitting that they are buying paper from automotive dealerships who are not properly disclosing what their customers are signing.
Having a 61% portfolio ratio of customers who have no idea what their interest rate is would scare me to death.
This creates visions of an F&I Manager putting one hand over the truith-in-lending disclosures while pointing toward the bottom of the r.i.s.c. leading the customer to just "sign right here".
Are we back to the "good 'ol days"?
Scary.
Back to blog homepage
A majority (61 percent) of Americans who currently have auto loans do not know the interest rate they are paying on their loan, a new survey from Capital One Financial Corporation suggests. In a challenging economy, when saving money is particularly important, many consumers may be paying more than necessary and could benefit from a lower interest rate and a lower monthly loan payment by refinancing, the company notes.
Read the rest of the article here
Are you kidding me???
Where is Capital One getting the data for this survey?
I get beat up all the time over the interest rates. The majority of my customers want to know exactly what the rates are before any products are even mentioned.
Does this article suggest that if the customer falls into the sub-prime catagory, the F&I manager might not be practicing proper disclosure? By reading this article, it appears so 61% of the time - right?
Would Capital One be admitting that they are buying paper from automotive dealerships who are not properly disclosing what their customers are signing.
Having a 61% portfolio ratio of customers who have no idea what their interest rate is would scare me to death.
This creates visions of an F&I Manager putting one hand over the truith-in-lending disclosures while pointing toward the bottom of the r.i.s.c. leading the customer to just "sign right here".
Are we back to the "good 'ol days"?
Scary.
Back to blog homepage
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