Great menu presentation! I know this presentation was staged, but I love the way the guy came back in for the kill at the end.
This video is a good refresher for any F&I manager.
Next post: Objection handling: Pre-paid Maintenance
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Showing posts with label Menu Selling. Show all posts
Showing posts with label Menu Selling. Show all posts
Thursday, September 8, 2011
Monday, August 8, 2011
F&I Menu Presentation - Tough Buyer
Watch Don Leon close down a tough payment buyer using an accelerated equity program.
Next post: Objection handling: Pre-paid Maintenance
More on the US Fidelis fiasco
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Next post: Objection handling: Pre-paid Maintenance
More on the US Fidelis fiasco
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Friday, November 26, 2010
Objection Handling - PrePaid Maintenance
Just a refresher on a prepaid maintenance close that pretty much always works:
Objection: I don't want my payment ANY higher!
Handled: I do appreciate that Mr/Mrs customer because I feel exactly the same way. By prepaying for required maintenance, you will never have to worry about adding oil and filter changes and other items into a tight budget.
Objection: So I'm only prepaying for oil changes?
Handled: Prepaid maintenance is much more than just an oil change program. While your car is in for service, you will receive safety inspections to alert you of potential problems, tire rotation and air filter changes.
Most important, you'll have the peace of mind knowing that only factory-trained technicians are touching your car. They'll spot potential problems that most other mechanics are going to miss.
Next Post: More on the US Fidelis fiasco
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Wednesday, September 29, 2010
Toyota Dealer bans the F&I Office???
Well, I'm still not sold on this - but I have been hearing a lot about the concept of letting the salesperson complete the transaction from start to finish with a customer. This report is from a sales trainer who I respect - but in this case, don't agree with.
"For most dealers nationwide, a one-pricing sales strategy is a tough concept to accept. To even suggest that their sales staff should be given the authority to finalize every transaction at their desks and include the menu presentation without sending any customer into "the box" is heart-stopping for them. What about banning the F&I office altogether?
And look at what happened to Saturn by the way...
AFI's take on this:
I fully agree that the more transparent your sales techniques are - the more money you will make.
I also know that human nature will always take the path of "least resistance".
For example - if a salesperson badly needs his _x_th car to hit a bonus level - and it's the eve of the last day of the month - he or she will give ALL the gross of the car away, work the manager for maximum trade ACV, quote the customer payments at "buy rate" and sell ZERO F&I products.
Prove me wrong.
Some (most) people really can't be good F&I Managers, just like some F&I Managers can't be good Sales Managers. You really don't know until you give it a try.
Like our buddy Obama - imposing his "Grand Experiment" on our country.
I wish Colonial Toyota the best in their experiment and hope it works out.
My opinion is to still have the F&I Manager come out and greet the customers before them coming into the F&I office (building transparency).
F&I Manager: "Hello, congratulations on the purchase of your new vehicle.
My name is _______ and I am the business manager here at _______. My job is to take care of all the legal issues such as your title work and registration, as well as go over the mandatory disclosures related to your purchase.
The process will normally take about 20-25 minutes. To help expedite the process, I have a few questions to ask before I can prepare your paperwork. Can we sit and review those now?
This will lead into the interview. (a good topic for a future post).
Next topic: GAP Objection Handling
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"For most dealers nationwide, a one-pricing sales strategy is a tough concept to accept. To even suggest that their sales staff should be given the authority to finalize every transaction at their desks and include the menu presentation without sending any customer into "the box" is heart-stopping for them. What about banning the F&I office altogether?
Well, one dealer I know is doing just that and very successfully. During these tough economic times, Colonial Toyota in Milford, CT, made a critical decision. The dealer chose to ban the F&I office and let his sales staff take charge of every transaction from beginning to end. He gave them all the title of "sales manager." I applaud Colonial Toyota for realizing that today's customers have changed and they needed to initiate their own changes to capture their business.
I was hired to train these sales managers in the proper and most effective presentation of menu presentation. I was skeptical at first, and then wholly impressed by this dealer's innovative "out of the box" thinking. The sales staff was enthusiastic and infused with optimism. The showroom is humming to a different beat of the drum and the excitement is palpable. Customers are buying and liking the upfront honesty projected by the staff.
Ironically, far too many dealerships still don't understand the necessity for transparent selling. They would rather stick to the status quo and continue to use outdated sales techniques. Their F&I managers tout their use of menu selling, but their process is seldom conducted with proper disclosures. They rarely review the base payment with customers for fear that any upfront disclosure will reduce their personal income. Although there are several great menu software providers on the market, the reality is that individual dealership menus are often changed to accommodate the missing base payment or itemization of cost. Dealers and F&I managers fear they cannot make a profit by being upfront with their customers. It's time to set fears aside.
One-price vehicle sales and the menu go together. Take Saturn, for example. Back in 1989-1990, when they first opened their doors with a brave new concept of "one-price" sales, the so-called experts in the industry said it wouldn't work. Customers wanted to haggle for the best deal. Customer wouldn't pay retail for a car without the bargaining process. Surprise! Customers did buy Saturns with the one-price offer and were happy to do it. The showrooms were packed with customers and the cars were hard to come by"
And look at what happened to Saturn by the way...
AFI's take on this:
I fully agree that the more transparent your sales techniques are - the more money you will make.
I also know that human nature will always take the path of "least resistance".
For example - if a salesperson badly needs his _x_th car to hit a bonus level - and it's the eve of the last day of the month - he or she will give ALL the gross of the car away, work the manager for maximum trade ACV, quote the customer payments at "buy rate" and sell ZERO F&I products.
Prove me wrong.
Some (most) people really can't be good F&I Managers, just like some F&I Managers can't be good Sales Managers. You really don't know until you give it a try.
Like our buddy Obama - imposing his "Grand Experiment" on our country.
I wish Colonial Toyota the best in their experiment and hope it works out.
My opinion is to still have the F&I Manager come out and greet the customers before them coming into the F&I office (building transparency).
F&I Manager: "Hello, congratulations on the purchase of your new vehicle.
My name is _______ and I am the business manager here at _______. My job is to take care of all the legal issues such as your title work and registration, as well as go over the mandatory disclosures related to your purchase.
The process will normally take about 20-25 minutes. To help expedite the process, I have a few questions to ask before I can prepare your paperwork. Can we sit and review those now?
This will lead into the interview. (a good topic for a future post).
Next topic: GAP Objection Handling
Back to the AFI Today homepage
Friday, June 4, 2010
What Does It Take for Me To Get $200 More per Car?
From F&I Insight:
It's no secret that you can't continue to rely on just rate or Vehicle Service Contracts to bring in more money per vehicle. However, with pressure for even more profitability in F&I, how can you bring in $200 more per car?
Selling more ancillary products is the key to success. But, what seems like a no brainer requires a careful approach. The first step is to have five core F&I Products that you know can get you 20 percent or more penetration.
With the plethora of products and partners available out there, it may seem daunting to find the right mix. The thought of changing your line-up or or adding new products may seem like overkill right now. However, a customizable, comprehensive and competitive mix is what will bring in that extra $200 per vehicle.
Finally, you must deliver your menu presentations with confidence. When was the last time you participated in Menu Selling Training? Is your interview solid? Are you presenting the menu in the best way possible? And, what about objections?
With strong products, thorough customer knowledge and a solid, innovative partner, $200 more per car is definitely attainable.
Make 2009 your year! - AFI
Next Post: US Fidelis
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Tags: Automotive Finance, F&I, Finance & Insurance,
Credit Repair va
It's no secret that you can't continue to rely on just rate or Vehicle Service Contracts to bring in more money per vehicle. However, with pressure for even more profitability in F&I, how can you bring in $200 more per car?
Selling more ancillary products is the key to success. But, what seems like a no brainer requires a careful approach. The first step is to have five core F&I Products that you know can get you 20 percent or more penetration.
With the plethora of products and partners available out there, it may seem daunting to find the right mix. The thought of changing your line-up or or adding new products may seem like overkill right now. However, a customizable, comprehensive and competitive mix is what will bring in that extra $200 per vehicle.
Finally, you must deliver your menu presentations with confidence. When was the last time you participated in Menu Selling Training? Is your interview solid? Are you presenting the menu in the best way possible? And, what about objections?
With strong products, thorough customer knowledge and a solid, innovative partner, $200 more per car is definitely attainable.
Make 2009 your year! - AFI
Next Post: US Fidelis
BACK TO THE AFI TODAY HOMEPAGE:
Tags: Automotive Finance, F&I, Finance & Insurance,
Credit Repair va
Monday, September 14, 2009
Guide to Handling Objections: Identity Theft Protection
Objection: I monitor my credit reports on my own. I don't need it.
Response: Seventy-one percent of fraud happens within a week of the theft of your personal data.
How often do you monitor your credit reports?
For a small increase in your monthly payment, wouldn't you want the peace of mind that Identity Theft Protection provides?
Objection: If this would happen to me, I could fix it on my own.
Response: Did you know that most victims of identity theft lose thousands of dollars and lost wages, not to mention legal fees, trying to deal with their cases? It's awful.
You can spend months trying to repair the financial damage caused by identity theft.
It's not easy to remove the negative information from your credit reports.
Doing it on your own is very time consuming and will make you angry, irritated and depressed.
With Identity Theft Protection, you are assigned a personal recovery representative to manage your identity theft recovery and follow up for a year.
Objection: Identity theft happens to people who shop online. I never shop online, and I am very protective of my Internet passwords.
Response: According to identity theft experts, the Javelin Strategy & Research Center, low-tech methods for stealing personal information are still the most popular method of identity theft.
Stolen wallets and physical documents accounted for 43 percent of all identity theft last year, while online theft only accounted for 11 percent.
This program I am offering to you protects you from ALL TYPES of identity theft.
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Tags: Automotive Finance, F&I, Finance & Insurance,
Credit Repair va, Dealership Death Watch, Car Dealer Photos
Sunday, May 3, 2009
Handling F&I Objections: Combination Products
Tire & Wheel, PDR and Windshield
Objection: I don’t want to raise my payments anymore
Response: I understand … what you are saying is that you are on a budget and staying within it is important, correct?
Customer: Yes, that is correct.
Response: You will notice that with this protection, your payment is $548 per month and without it is $529 per month. So, for only $19 per month, you are budgeting for any future expenses and the peace of mind that goes along with that. Wouldn’t you agree that the $548 payment makes more sense for your long term budget?
Objection: I already have insurance.
Response: I understand … Unfortunately, many of the perils that UVP protects you from will cost less than your deductible. Not to mention the fact that your insurance company will not replace or repair a rim or tire damaged by a road hazard. With UVP, you are protecting yourself from the three most common perils of owning an automobile. With this protection, you are buying not only peace of mind but convenience as well. Would you prefer the 3 year, or would you like to upgrade to the 5 year?
Objection: I just don't think I need it.
Response: I understand. Earlier you told me that you plan to trade this vehicle in 3 years like you have with your previous vehicles. Many factors go into the value of a trade-in such as: mileage, color, tire wear and body condition. The UVP coverage can easily increase the value of your trade because it’s going to cover the three most common perils of automobile ownership, and they will have been taken care of prior to trading your vehicle. Do you want to take advantage of the 3 year option or upgrade to the 5 just in case you keep this one a little longer then the last?
Objection: I can afford to pay for these items as they happen.
Response: I understand … and it is nice to know you have that to fall back on. But, if you don’t mind, could I ask you a question?
Customer: Sure.
Response: Why would you want to spend your time and energy on something you probably don’t really have time for? (Short pause)
With UVP, repairs can be made on your schedule and at the locations that allow better utilization of your time. UVP covers the three most common perils of owning an automobile and it’s not going to be a question of if they happen but when. Let me simplify your life today with the UVP program for only $19 a month or a single payment of ______.
PRINT THIS FOR YOUR RECORDS:
BACK TO THE AFI TODAY HOMEPAGE:
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va
Objection: I don’t want to raise my payments anymore
Response: I understand … what you are saying is that you are on a budget and staying within it is important, correct?
Customer: Yes, that is correct.
Response: You will notice that with this protection, your payment is $548 per month and without it is $529 per month. So, for only $19 per month, you are budgeting for any future expenses and the peace of mind that goes along with that. Wouldn’t you agree that the $548 payment makes more sense for your long term budget?
Objection: I already have insurance.
Response: I understand … Unfortunately, many of the perils that UVP protects you from will cost less than your deductible. Not to mention the fact that your insurance company will not replace or repair a rim or tire damaged by a road hazard. With UVP, you are protecting yourself from the three most common perils of owning an automobile. With this protection, you are buying not only peace of mind but convenience as well. Would you prefer the 3 year, or would you like to upgrade to the 5 year?
Objection: I just don't think I need it.
Response: I understand. Earlier you told me that you plan to trade this vehicle in 3 years like you have with your previous vehicles. Many factors go into the value of a trade-in such as: mileage, color, tire wear and body condition. The UVP coverage can easily increase the value of your trade because it’s going to cover the three most common perils of automobile ownership, and they will have been taken care of prior to trading your vehicle. Do you want to take advantage of the 3 year option or upgrade to the 5 just in case you keep this one a little longer then the last?
Objection: I can afford to pay for these items as they happen.
Response: I understand … and it is nice to know you have that to fall back on. But, if you don’t mind, could I ask you a question?
Customer: Sure.
Response: Why would you want to spend your time and energy on something you probably don’t really have time for? (Short pause)
With UVP, repairs can be made on your schedule and at the locations that allow better utilization of your time. UVP covers the three most common perils of owning an automobile and it’s not going to be a question of if they happen but when. Let me simplify your life today with the UVP program for only $19 a month or a single payment of ______.
PRINT THIS FOR YOUR RECORDS:
BACK TO THE AFI TODAY HOMEPAGE:
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va
Friday, April 10, 2009
Handling F&I Objections: Key / Remote Replacement Plan
Objection: That seems expensive.
Response: The plan basically costs $49 per year (six-year finance) or $59 per year (five-year finance). People pay that for AAA for peace of mind, and AAA doesn’t cover the one loss you are most likely to have with your car. This way, you have a roadside plan that can save you a lot of time and money. Doesn't that make sense?
Objection: (For Leases) That seems expensive.
Response: Did you know that the most likely charge you would get at the end of your lease is a charge for around $375 to replace a key? Most people only turn in one key at the end of their lease. Let’s face it, a lot can happen in three years, and they usually misplace the spare. Isn't an extra $6.00 a month a good value?
Objection: I never lose my keys. I don’t think I need that.
Response: I’m sure you’ve misplaced them before and had to search the house, your office or your bag for them, right? Most people do that hundreds of times. Did you know that our parts department cuts more than 150 keys per month?
Just imagine the added stress knowing that it could cost you up to $700 for the key replacement, tow and rental. I really think you should go with it.
Objection: I wanted to keep the payment at what I was quoted.
Response: No problem at all. You must have your budget well planned. The $279 is what you pay for the car. Our Key Replacement Plan prevents the car from costing you more down the road. What if you experienced, say a $500 loss from losing your keys? Take that $500 for one year and divide it by 12 – that’s more than $40 per month added to your payment. Now you are at $319 per month for that year. Adding the Key Replacement Plan only brings your payment to $289. Does that make sense? What if I can work with you a little to allow you to get the plan and still keep your payment at $285? Would you go with that?
Opportunity: I don’t need it, but my wife, daughter or son could use key replacement. He/she always loses her keys.
Response: Great, we can offer the program to any family member. We just need to fill in his/her information. We can give him/her a set of key tags now. You get the new car, and he/she walks away with something for his/herself. The best news is that you can pay for it for him/her.
Opportunity: Key Replacement Plan has a high-perceived value and low cost making it perfect as a closing tool for other products.
EXAMPLE 1
F&I Manager: You like the parts and labor agreement I mentioned to you right? It covers the car, bumper to bumper, for 6 years and 100,000 miles?
Customer: Yes
F&I Manager: What if I was able to include the Key protection in the cost, and your payment was only $279 – would you go with that? (Ex - Add another month to the term).
EXAMPLE 2
F&I Manager: Of the products I mentioned, which ones interest you the most?
Customer: Appearance Protection, the LoJack, the GAP, etc.
F&I Manager: What if I was able to give you the Key Replacement and the pro-pack (or the GAP), and keep your payment at $289? (Slightly reduce product prices and/or increase loan term).
PRINT THIS FOR YOUR RECORDS:
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Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
Friday, March 20, 2009
Automotive Finance Department Video on Menu Presentation
Here is a fantastic F&I menu presentation (other than his cell phone ringing in the middle of it) by a guy named Jim Brink. I found it on YouTube during a brutally slow bell to bell.
The objection handling by this guy is excellent! Check it out.
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Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
The objection handling by this guy is excellent! Check it out.
BACK TO THE AFI TODAY HOMEPAGE:
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
Thursday, January 29, 2009
Guide to Handling Objections: Tire & Wheel, Paintless Dent (Combination Products)
Thanks to Safe-Guard Products International:
Objection: I don’t want to raise my payments anymore
Response: I understand … what you are saying is that you are on a budget and staying within it is important, correct?
Customer: Yes, that is correct.
Response: You will notice that with this protection, your payment is $548 per month and without it is $529 per month. So, for only $19 per month, you are budgeting for any future expenses and the peace of mind that goes with it. Wouldn’t you agree that the $548 payment makes more sense for your long term budget?
Objection: I already have insurance.
Response: I understand … Unfortunately, many of the perils that UVP protects you from will cost less than your deductible. Not to mention the fact that your insurance company will not replace or repair a rim or tire damaged by a road hazard. With UVP, you are protecting yourself from the three most common perils of owning an automobile. With this protection, you are buying not only peace of mind but convenience as well. Would you prefer the 3 year, or would you like to upgrade to the 5 year?
Objection: I just don't think I need it.
Response: I understand. Earlier you told me that you plan to trade this vehicle in 3 years like you have with your previous vehicles. Many factors go into the value of a trade-in such as: mileage, color, tire wear and body condition. The UVP coverage can easily increase the value of your trade because it’s going to cover the three most common perils of automobile ownership, and they will have been taken care of prior to trading your vehicle. Do you want to take advantage of the 3 year option or upgrade to the 5 just in case you keep this one a little longer then the last?
Objection: I can afford to pay for these items as they happen.
Response: I understand … and it is nice to know you have that to fall back on. But, if you don’t mind, could I ask you a question?
Customer: Sure.
Response: Why would you want to spend your time and energy on something you probably don’t really have time for? (Short pause)
With UVP, repairs can be made on your schedule and at the locations that allow better utilization of your time. UVP covers the three most common perils of owning an automobile and it’s not going to be a question of if they happen but when. Let me simplify your life today with the UVP program for only $19 a month or a single payment of ______.
Not bad.
BACK TO THE AFI TODAY HOMEPAGE:
Print this article for your records.
Tags: F&I, f&i manager blog, Credit Repair va, Credit Repair blog
Objection: I don’t want to raise my payments anymore
Response: I understand … what you are saying is that you are on a budget and staying within it is important, correct?
Customer: Yes, that is correct.
Response: You will notice that with this protection, your payment is $548 per month and without it is $529 per month. So, for only $19 per month, you are budgeting for any future expenses and the peace of mind that goes with it. Wouldn’t you agree that the $548 payment makes more sense for your long term budget?
Objection: I already have insurance.
Response: I understand … Unfortunately, many of the perils that UVP protects you from will cost less than your deductible. Not to mention the fact that your insurance company will not replace or repair a rim or tire damaged by a road hazard. With UVP, you are protecting yourself from the three most common perils of owning an automobile. With this protection, you are buying not only peace of mind but convenience as well. Would you prefer the 3 year, or would you like to upgrade to the 5 year?
Objection: I just don't think I need it.
Response: I understand. Earlier you told me that you plan to trade this vehicle in 3 years like you have with your previous vehicles. Many factors go into the value of a trade-in such as: mileage, color, tire wear and body condition. The UVP coverage can easily increase the value of your trade because it’s going to cover the three most common perils of automobile ownership, and they will have been taken care of prior to trading your vehicle. Do you want to take advantage of the 3 year option or upgrade to the 5 just in case you keep this one a little longer then the last?
Objection: I can afford to pay for these items as they happen.
Response: I understand … and it is nice to know you have that to fall back on. But, if you don’t mind, could I ask you a question?
Customer: Sure.
Response: Why would you want to spend your time and energy on something you probably don’t really have time for? (Short pause)
With UVP, repairs can be made on your schedule and at the locations that allow better utilization of your time. UVP covers the three most common perils of owning an automobile and it’s not going to be a question of if they happen but when. Let me simplify your life today with the UVP program for only $19 a month or a single payment of ______.
Not bad.
BACK TO THE AFI TODAY HOMEPAGE:
Print this article for your records.
Tags: F&I, f&i manager blog, Credit Repair va, Credit Repair blog
Sunday, January 4, 2009
Where Did The Income Go In F&I?
by Jan Kelly
AFI - I have always liked Jan's articles.
LEAVE A COMMENT:. Is the F&I office becoming an accessory sales center?
The profit streams in F&I are once again changing. There is a lack of reserve and the lenders are limiting the traditional, F&I products and services. This can be traced to lack of cash down payment and the fact that a good portion of customers are suffering from a negative equity position from the beginning of the financial transaction.
These problems, however, are not insurmountable - There is nothing wrong with the level of income in F&I that more cash involvement from the customer cannot cure. Who needs to ask for this investment? The line of communication between the dealership and the customer begin with the sales consultant.
Thirty years ago when the finance department was young, the sales consultants were all educated to work the customer for cash down. In fact the sales department profit was defined by the amount of cash down the sales consultant and sale manager were able to obtain. The rule was simple; the gross profit of the deal was equal to the initial investment by the customer.
Time is the catalyst that brings about new strategies
In the auto industry, those changes were zero down, long-term financing, which created huge amounts of negative equity for many customers. Along with the importance of cash down, the products of the F&I office have changed. Credit life, accident, and health insurance are almost non-existent, those dollars were switched long ago to protective coatings that maintain the appearance of the vehicle.
The F&I office will become the accessory center. (Wow - AFI)
In addition to the financing being tighter, deals are fewer, and the importance of maximizing the transaction has never been greater. Customers are still looking for dependable transportation.
The heyday of SUVs is over
American customers are looking for fuel-efficient vehicles, but that doesn’t mean they don’t want to accessorize their rides. We are accustomed to having high technology, convenience, and stylish looking vehicles and we will spend money for things we want; and we want bells and whistles.
Best opportunities (New Menus?)
A great use of those first few minutes in the F&I office could be to give the customer a simple one page sheet (menu?) of things that could be included in the financing as approved add on items, such as cargo organizers, DVD players for the back seat, iPod/MP3 player recharging stations, special wheels, pin striping, tinted windows, and enhanced security systems.
Make up a page for sedans, one for trucks, and one for SUVs. Use different color paper and keep the list limited to the most commonly requested items in your market place. The first step in capturing these accessories dollars is to recognize that your customers are already making these purchases, they’re just doing it elsewhere.
Accessorizing is big business!
This is a great way to use those first few quiet minutes when the customer and the F&I professional begin the F&I process. The list could be viewed as the F&I professional is entering the deal information or checking the spelling of the names.
Selling additional accessories must be done after the commitment to purchase the vehicle but before the financing is arranged. Keep in mind that nothing will be added to the vehicle until the funding is secure and the dealership is paid. You can work out those details between departments.
In these times flexibility is the key to growing the income and building happy, loyal customers. Keep the process simple and keep the customers coming back by becoming a one stop shop for all the things that make a fun driving experience.
Jan Kelly is the president of Kelly Enterprises. She is a sales trainer and consultant, convention speaker, and writes frequently for industry publications. Call Jan at 800-336-4275, or visit at www.JLKelly.com.
BACK TO THE AFI TODAY HOMEPAGE:
Print this article for your records.
Tags: F&I, f&i manager blog, Credit Repair va, Credit Repair blog
AFI - I have always liked Jan's articles.
LEAVE A COMMENT:. Is the F&I office becoming an accessory sales center?
The profit streams in F&I are once again changing. There is a lack of reserve and the lenders are limiting the traditional, F&I products and services. This can be traced to lack of cash down payment and the fact that a good portion of customers are suffering from a negative equity position from the beginning of the financial transaction.
These problems, however, are not insurmountable - There is nothing wrong with the level of income in F&I that more cash involvement from the customer cannot cure. Who needs to ask for this investment? The line of communication between the dealership and the customer begin with the sales consultant.
Thirty years ago when the finance department was young, the sales consultants were all educated to work the customer for cash down. In fact the sales department profit was defined by the amount of cash down the sales consultant and sale manager were able to obtain. The rule was simple; the gross profit of the deal was equal to the initial investment by the customer.
Time is the catalyst that brings about new strategies
In the auto industry, those changes were zero down, long-term financing, which created huge amounts of negative equity for many customers. Along with the importance of cash down, the products of the F&I office have changed. Credit life, accident, and health insurance are almost non-existent, those dollars were switched long ago to protective coatings that maintain the appearance of the vehicle.
The F&I office will become the accessory center. (Wow - AFI)
In addition to the financing being tighter, deals are fewer, and the importance of maximizing the transaction has never been greater. Customers are still looking for dependable transportation.
The heyday of SUVs is over
American customers are looking for fuel-efficient vehicles, but that doesn’t mean they don’t want to accessorize their rides. We are accustomed to having high technology, convenience, and stylish looking vehicles and we will spend money for things we want; and we want bells and whistles.
Best opportunities (New Menus?)
A great use of those first few minutes in the F&I office could be to give the customer a simple one page sheet (menu?) of things that could be included in the financing as approved add on items, such as cargo organizers, DVD players for the back seat, iPod/MP3 player recharging stations, special wheels, pin striping, tinted windows, and enhanced security systems.
Make up a page for sedans, one for trucks, and one for SUVs. Use different color paper and keep the list limited to the most commonly requested items in your market place. The first step in capturing these accessories dollars is to recognize that your customers are already making these purchases, they’re just doing it elsewhere.
Accessorizing is big business!
This is a great way to use those first few quiet minutes when the customer and the F&I professional begin the F&I process. The list could be viewed as the F&I professional is entering the deal information or checking the spelling of the names.
Selling additional accessories must be done after the commitment to purchase the vehicle but before the financing is arranged. Keep in mind that nothing will be added to the vehicle until the funding is secure and the dealership is paid. You can work out those details between departments.
In these times flexibility is the key to growing the income and building happy, loyal customers. Keep the process simple and keep the customers coming back by becoming a one stop shop for all the things that make a fun driving experience.
Jan Kelly is the president of Kelly Enterprises. She is a sales trainer and consultant, convention speaker, and writes frequently for industry publications. Call Jan at 800-336-4275, or visit at www.JLKelly.com.
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