F&I Menu Presentation

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.




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Objection Handling: How to Handle the "I'll Think it Over Objection "

Even though this is an F&I blog, the techniques in this close are VERY GOOD GUIDANCE for anyone selling cars for a living. Whether you are a rookie or a veteran, I highly recommend taking 9 minutes to go through this clip with Mark and re-apply these tried and proven sales tactics.

Maybe send the clip to your GM to show during a sales meeting...


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F&I Menu Presentation - Tough Buyer

Watch Don Leon close down a tough payment buyer using an accelerated equity program.






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Is This Your Best Rate? video

This video shows the most compliant way to answer the question: "Is that your best rate?"


Handling the "Best Rate" Question
Gerry Gould, Director of Training
United Development Systems, Inc.

http://www.fi-magazine.com/Content/Insider-Tip-of-the-Week1.aspx


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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.

The fantastic news is that for only $_____ more per month, you will be able to budget these expenses at today's guaranteed prices rather than taking a chance on how much they are going to go up next year - much less 2 (3, 4 or 5) years from now.

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.



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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?

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

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Objection Handling: GAP Total Loss Protection

Here are some good closes brought to us by Safeguard Products:


Objection: I have insurance already; I don't need more.

Response: I understand ... your insurance company is obligated to provide you funds that are equal to your actual cash value. However, they are not obligated to give you the amount equal to your payoff. If you owed $25,000 on your vehicle, you wouldn't accept a $20,000 settlement, would you?


Objection: I can't afford it.

Response: I understand ... but what would happen if your vehicle was deemed a total loss and you still owed $5,000 after the insurance company settled?

You would be forced to finance that $5,000 into your next car purchase - which would add an additional $100 to your monthly car payment, or you would have to come up with that $5,000 out of pocket.

Wouldn't it make more sense to pay $10 more per month right now for that coverage and peace of mind?


Objection: I have never had a car totaled before.

Response: I understand ... and you are lucky! However, let's say this does happen to you. When your car is totaled, your insurance company calls all the shots, and their goal is to settle as cheaply as possible, often using unfair techniques to determine the value of your car.

GAP protects you from the consequences of this unfair treatment by paying off your loan regardless of the valuation methods used by your insurance carrier.


Objection: I'll check with my insurance company about GAP.

Response: I understand ... however, it is important to note that some states do not allow you to purchase GAP from your insurance agent because there can be a conflict of interest.

Insurance companies often fail to total out vehicles that would otherwise be totaled, simply because the customer has GAP insurance through that carrier.

Rather than pay off your lender, the insurance companies may decide to pay to fix your car, although this may leave you with a greatly devalued vehicle that may be unsafe or uncomfortable to drive.


Objection: I have been with the same insurance company for years, and they will take care of everything.

Response: I understand, and it's great that you have a great relationship ... but did your agent ask you how much you were financing today?

I bet he didn't because whether you financed $5,000 or $50,000 on this car, your insurance company is only going to pay the Actual Cash Value of the vehicle if it's totaled.

You will be responsible for the payoff difference after your insurance company settles. With GAP protection, you are completely covered.


Best Practices

1. Ask Questions: Most customers know very little about GAP, and a simple explanation of what GAP covers in the event of a total loss will make financial sense to the customer.

What do you know about GAP?

In the event your car is totaled, where will you find the money to pay off your loan and insurance deductible?

2. 553 Contract Close (CA only):
Using a current 553 Law contract, point out Outstanding Loan Balance Settlement section.

Say to the Customer: This is a legal contract, and printed in RED is the statement that your insurance may not cover the outstanding loan balance.

Flip Contract Over and Say: You will notice that this has become such an issue that the notice is printed a second time.

You are required to initial this notice as recognition that you understand your insurance coverage may not pay off the balance you owe in the event of a total loss.

*This example refers to Settlement GAP.


Good stuff! - AFI

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Tags: Automotive Finance, F&I, Finance & Insurance,
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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,
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F&I Objection Handling: Roadside Assistance with Tire and Wheel Road hazard Protection

Objection: I have roadside assistance with AAA.

Response: Excellent. Obviously you already see the benefits of roadside assistance.

"Which AAA coverage plan do you have? AAA standard @ $64* per year? Or, AAA Plus @ $97* per year?"

"With AAA, you’ll be paying approximately $500* over 5 years, and you still won’t have protection from roadside hazards. For only $_____ per month you can have both the Roadside Assistance and Tire & Wheel Road Hazard Protection. Your tires are the only parts of your vehicle that touch the ground, and tire and wheel repairs are the most expensive repairs you will have that are not covered by the manufacturer’s warranty."

Best Practices:

1. Know your product! Many manufacturers do not provide towing unless the breakdown is due to failure of a covered part. Towing is only available if the vehicle is still under factory warranty. How much factory bumper - to - bumper is still left on the vehicle?

2. Present your customer with a copy of owner’s manual detailing what’s covered by factory roadside assistance and present it as an “upgrade” to limited factory coverage.

3. Sell it as a combo. It is the Roadside Assistance and Tire & Wheel Road Hazard Protection Plan. Point out that the factory offers NO coverage for roadside hazards.

4. Stay current on AAA Membership Benefits and rates. For example, in the South, AAA’s Membership Benefits Chart can be found online at www.aaasouth.com/membership.asp.*


!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

*** If anyone would like to offer this fantastic product in the F&I office, I am also the acting rep! Call 1-800-671-1454 or send an email to autofinanceinsider@yahoo.com. The incentive / rewards program for the F&I managers will blow your mind. LET"S TALK! --- AFI

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Check out Tire and Wheel objection handling on this You-Tube Video:


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Tags: Automotive Finance F&I Finance & Insurance
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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 ______.


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Tags: Automotive Finance F&I Finance & Insurance
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Handling F&I Objections: Paintless Dent Repair

Objection: My insurance will cover it.

Response: I understand … unfortunately, the cost of most body panel repairs are less than your deductible. This program covers those common and frustrating dents and dings that are unsightly and although expensive to repair, would usually cost less than your deductible.

Would you prefer the three-year, or would you like to upgrade to the five-year?


Objection: I don't think it's important.

Response: Do you remember how you felt when you discovered the first scratch or dent on a previous new car? As you were first getting out of your car, intuition probably told you that the person in the parking space next to you was going to open his car door into yours.

Seeing the ding probably drove you crazy.

Right now your new vehicle is perfect, but inevitably, normal wear and tear, not to mention the itiots in parking lots, will cause numerous dings and dents on your brand new car. With the Dent & Ding Protection, you can keep your car looking new for much longer and eliminate lots of frustration.


Objection: I just don't think I need it.

Response: Earlier, you told me that you plan to trade this vehicle in three 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 shape.

This coverage can easily increase the value of your trade because the dent and dings will have been taken care of prior to trading your vehicle.



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Tags: Automotive Finance F&I Finance & Insurance
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