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.
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Tags: F&I, f&i manager blog, Credit Repair va, Credit Repair blog
Thursday, January 29, 2009
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.
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
Saturday, January 3, 2009
Four Ways to Put Your Customer at Ease in the F&I Office
Here is some fantastic F&I training by Ron Reahard
With all the warnings customers get from 20/20, consumer reports and their local credit union about deceptive sales practices and “hidden profits” dealers make in the F&I department, some days it feels like there is a big yellow warning sign outside the F&I office that reads “Caution: F&I Manager Ahead!” I travel in airplanes all the time. Occasionally, I’ll get into a conversation with my seatmate. Invariably, at some point, they all ask the same question,“So, what do you do for a living?”You ought to see the look I get when I tell them I train finance managers for car dealers.You’d think I was a terrorist. Their eyes get big, they swallow hard and they start looking around for a U.S.Marshal to throw me off the plane. After a few seconds of awkward silence, they feel compelled to relate the sordid tale of the last time they bought a car, and the horrible experience they had in the F&I office.
Many complain about having been forced to wait 20 to 60 minutes just to get into the finance office. Once they are finally allowed an audience with the F&I “god,” they perceive him to be pushy, less than honest and focused on his own agenda (i.e., trying to sell them something). Often, they describe F&I managers as unprofessional and confrontational.
Even worse, if the customer doesn’t immediately agree to buy what he is selling, the F&I professional becomes downright rude.
Today’s customers don’t want to wait 30 minutes just to get into the finance office. They want the paperwork to be easy to complete and understand, and they want their questions answered. They want to deal with a knowledgeable able professional who treats them with courtesy and respect, whether they buy anything or not. Customers expect to be able to choose from a variety of financing plans and options, and they want to feel like they got a “fair deal.” They don’t want to feel pressured to buy something they don’t want.
The only way to change the customer’s perception of the financial services process, as well as the media’s perception of F&I,is by changing the way we do business. We must create a measurable difference in the mind of the customer that separates us from the competition in a positive way.
Today’s financial services professional must utilize a dialogue approach to sales, as opposed to a memorized or canned product “sales pitch.” You can’t just whip out a brochure and launch into a sales pitch if the customer isn’t interested in the product. A financial services professional must focus on the customer and their unique needs,not merely product benefits. We want to exceed customer expectations and delight customers by providing a more satisfying and enjoyable purchase experience, while increasing dealer profits through a customer-focused financial services process.
Every dealership, every customer, every sale is unique; and every F&I presentation must be tailored to that customer’s unique needs. To ensure every customer receives a thorough explanation of their options in the minimum amount of time, with the maximum chance of F&I product sales, there are four keys to ensuring a customer focused financial services experience. Let’s explore each one.
GET DOWN OFF YOUR THRONE
For a customer, going back to the F&I office is like going to see the Wizard of Oz. Remember that scene, when Dorothy, the Tin Man, the Lion and the Scarecrow shook and trembled as they walked down that ominous hall to see the Wizard? We can eliminate the customer’s fear of the unknown by getting down off our throne, coming out from behind the curtain and greeting them where they’re relaxed and comfortable (i.e., in the salesperson’s office).
Sometimes, greeting the customer is the hardest part of your entire presentation, especially if it’s 9:30 at night and you were supposed to get off at six. But when you have a customer, it’s “Showtime at the Apollo.” Every customer deserves a good show. The customer’s first impression of you is critical because it sets the tone for your entire interaction with that customer. Be enthusiastic. Put on a smile and have a spring in you step. Shake everyone’s hand. Get on a first name basis if at all possible. More importantly, have FUN with the customer!
Have you ever walked by a salesperson’s office and heard a customer laughing and talking? You know the next place you’ll see that customer is in your office to discuss how they’ll finance the vehicle. It’s no different in the F&I office. If you can get a customer to laugh in the first two minutes, they’ll buy F&I products!
DON’T MAKE CUSTOMERS WAIT
One of the most important things you can do to change the customer’s perception of the financial services process is to stop making them wait to come into the F&I office. Unless you already have someone in your office, there is no excuse for making a customer wait. As soon as the salesperson completes the buyer’s order or worksheet, go out and greet the customer in the salesperson’s office. Put the customer at ease immediately. Introduce yourself. Tell them who you are, what you’re going to do, how long it’s going to take, and offer them something to drink.
“Hi, I’m John Smith, the financial services anager here at ABC Motors. It’s my job to complete the paperwork for the Department of Motor Vehicles, arrange your financing, if any, and take care of all the legal documents. This should take about 30 or 40 minutes. Before we get started, what can I get you to drink: coffee, bottled water, a soft drink, maybe something with an umbrella in it?” The key here is to be urgent to serve —not urgent to sell!
Now it’s time to bring them back to your office. Remember, you’re not on some top secret assignment back there. So, let them see what you’re doing. Examine the buyer’s order and let them see you verify that all the figures and information are correct. It’s also a good idea to review the customer’s statement and credit bureau report. The key here is to understand the circumstances and details surrounding any adverse credit information disclosed by the customer or the credit bureau report. And this needs to be done prior to submitting the credit application.
Why? You need to find the reasons why this customer is a good risk to help your paper-buyer justify an approval or a changing of the tier level.
Ask open-ended, needs-discovery questions as you enter customer information into the computer to understand their wants, needs and concerns. The key is to be genuinely interested in the customer. You can do this by engaging the customer in a conversation. Do this to find out why your customer needs your products. Remember, if you expect a customer to be interested in what you have to say, you must first be interested in what they have to say!
CHANGE THE ENVIRONMENT
Changing customer perceptions also demands a change in environment. I’ve told dealers for years to make sure there’s a distinct difference from the tiled showroom floor and the floor inside the F&I office. Often, I suggest that dealers add a one-inch pad under the carpet inside the F&I office. That way the customer knows they’ve left the sales environment once their feet touch that soft, padded carpet.
Your office must also contain a picture of your family. A customer needs to know you’re just like him or her.He or she needs to know you also have a family, a brother, a sister, a spouse, kids, a dog and a cat. If you don’t have a family, go down to Walgreen’s and buy a frame. It’ll have a family in it.
Your office should also contain a conversation starter; something unique or unusual that will help you break the ice with the customer. It could be an autographed picture of someone famous, a baseball or golf club. It can even be that “computer on wheels”device that helps customers understand the need to buy a vehicle service contract. A scenic picture on the wall will help relax the customer.A live plant also helps change the environment. It tells a customer a lot about you. The great thing about having a healthy plant in your office is you have to take care of it. This makes you a caregiver. A candy dish makes a customer feel welcome. It says,“We’re glad you’re here!”
Some things your office should NOT contain include manufacturer’s promotional materials or sales awards. And there should be absolutely NO product brochures
visible when they walk into your office. A brochure immediately tells a customer you’re going to try and sell them something. It’s also a ticket for the be-back bus because it communicates the fact they don’t have to buy today. What it says is they can take the brochure home and think about it.
CHANGE THE EXPERIENCE
Selling our products isn’t something we do to someone, it’s something we do for and with them. In the F&I office, understanding a customer’s wants, needs and concerns must always precede any attempt to sell them something. Selling F&I products isn’t just about helping the dealership, it’s about helping the customer! Selling F&I products to an informed consumer depends upon your ability to find and fill his or her needs … NOT on your ability to get people to buy something they don’t want, and don’t think they need. If you’re not genuinely trying to help the customer, then the F&I process is adding no value to his or her purchase experience. If the F&I process is not adding value to the purchase experience, then it is alienating your customers. And that hurts customer satisfaction. There are two questions you need to answer: How can you ensure you’re helping as many customers as possible, and how can you remove the pressure customers feel when going through the F&I process?
Easy … use a menu to present every product to every customer every time. Give the customer options, not sales pitches. The use of a menu can dramatically reduce the amount of time customers spend in the F&I office. A menu allows customers to select the products they want,and ask questions or voice concerns about the ones they don’t think they need. This allows us to focus on what is important to the customer, and give him or her a chance to discuss why that product may be especially important to them. Rather than “selling,” you’re simply reviewing options, and trying to help the customer make the right decision based upon their unique situation. Getting rid of that warning sign requires the F&I process to be an enjoyable part of the purchase experience.
A financial services professional must get down off his or her throne, bring that customer back to the F&I office as quickly as possible and remember the most important part of your job is to help customers. This is achieved by changing the environment, as well as changing the experience. That means helping every customer make the best decision for him or her and his or her family. If your customer doesn’t leave your office with a smile, there’s a good chance that warning sign might just be outside your office the next time he or she is looking for a vehicle.
Ron Reahard is president of Reahard & Associates Inc., an F&I training and consulting company. You can contact Ron at 866 REAHARD. On the web at: http://www.go-reahard.com/home.html
BACK TO THE AFI TODAY HOMEPAGE:
Print this article for your records.
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
With all the warnings customers get from 20/20, consumer reports and their local credit union about deceptive sales practices and “hidden profits” dealers make in the F&I department, some days it feels like there is a big yellow warning sign outside the F&I office that reads “Caution: F&I Manager Ahead!” I travel in airplanes all the time. Occasionally, I’ll get into a conversation with my seatmate. Invariably, at some point, they all ask the same question,“So, what do you do for a living?”You ought to see the look I get when I tell them I train finance managers for car dealers.You’d think I was a terrorist. Their eyes get big, they swallow hard and they start looking around for a U.S.Marshal to throw me off the plane. After a few seconds of awkward silence, they feel compelled to relate the sordid tale of the last time they bought a car, and the horrible experience they had in the F&I office.
Many complain about having been forced to wait 20 to 60 minutes just to get into the finance office. Once they are finally allowed an audience with the F&I “god,” they perceive him to be pushy, less than honest and focused on his own agenda (i.e., trying to sell them something). Often, they describe F&I managers as unprofessional and confrontational.
Even worse, if the customer doesn’t immediately agree to buy what he is selling, the F&I professional becomes downright rude.
Today’s customers don’t want to wait 30 minutes just to get into the finance office. They want the paperwork to be easy to complete and understand, and they want their questions answered. They want to deal with a knowledgeable able professional who treats them with courtesy and respect, whether they buy anything or not. Customers expect to be able to choose from a variety of financing plans and options, and they want to feel like they got a “fair deal.” They don’t want to feel pressured to buy something they don’t want.
The only way to change the customer’s perception of the financial services process, as well as the media’s perception of F&I,is by changing the way we do business. We must create a measurable difference in the mind of the customer that separates us from the competition in a positive way.
Today’s financial services professional must utilize a dialogue approach to sales, as opposed to a memorized or canned product “sales pitch.” You can’t just whip out a brochure and launch into a sales pitch if the customer isn’t interested in the product. A financial services professional must focus on the customer and their unique needs,not merely product benefits. We want to exceed customer expectations and delight customers by providing a more satisfying and enjoyable purchase experience, while increasing dealer profits through a customer-focused financial services process.
Every dealership, every customer, every sale is unique; and every F&I presentation must be tailored to that customer’s unique needs. To ensure every customer receives a thorough explanation of their options in the minimum amount of time, with the maximum chance of F&I product sales, there are four keys to ensuring a customer focused financial services experience. Let’s explore each one.
GET DOWN OFF YOUR THRONE
For a customer, going back to the F&I office is like going to see the Wizard of Oz. Remember that scene, when Dorothy, the Tin Man, the Lion and the Scarecrow shook and trembled as they walked down that ominous hall to see the Wizard? We can eliminate the customer’s fear of the unknown by getting down off our throne, coming out from behind the curtain and greeting them where they’re relaxed and comfortable (i.e., in the salesperson’s office).
Sometimes, greeting the customer is the hardest part of your entire presentation, especially if it’s 9:30 at night and you were supposed to get off at six. But when you have a customer, it’s “Showtime at the Apollo.” Every customer deserves a good show. The customer’s first impression of you is critical because it sets the tone for your entire interaction with that customer. Be enthusiastic. Put on a smile and have a spring in you step. Shake everyone’s hand. Get on a first name basis if at all possible. More importantly, have FUN with the customer!
Have you ever walked by a salesperson’s office and heard a customer laughing and talking? You know the next place you’ll see that customer is in your office to discuss how they’ll finance the vehicle. It’s no different in the F&I office. If you can get a customer to laugh in the first two minutes, they’ll buy F&I products!
DON’T MAKE CUSTOMERS WAIT
One of the most important things you can do to change the customer’s perception of the financial services process is to stop making them wait to come into the F&I office. Unless you already have someone in your office, there is no excuse for making a customer wait. As soon as the salesperson completes the buyer’s order or worksheet, go out and greet the customer in the salesperson’s office. Put the customer at ease immediately. Introduce yourself. Tell them who you are, what you’re going to do, how long it’s going to take, and offer them something to drink.
“Hi, I’m John Smith, the financial services anager here at ABC Motors. It’s my job to complete the paperwork for the Department of Motor Vehicles, arrange your financing, if any, and take care of all the legal documents. This should take about 30 or 40 minutes. Before we get started, what can I get you to drink: coffee, bottled water, a soft drink, maybe something with an umbrella in it?” The key here is to be urgent to serve —not urgent to sell!
Now it’s time to bring them back to your office. Remember, you’re not on some top secret assignment back there. So, let them see what you’re doing. Examine the buyer’s order and let them see you verify that all the figures and information are correct. It’s also a good idea to review the customer’s statement and credit bureau report. The key here is to understand the circumstances and details surrounding any adverse credit information disclosed by the customer or the credit bureau report. And this needs to be done prior to submitting the credit application.
Why? You need to find the reasons why this customer is a good risk to help your paper-buyer justify an approval or a changing of the tier level.
Ask open-ended, needs-discovery questions as you enter customer information into the computer to understand their wants, needs and concerns. The key is to be genuinely interested in the customer. You can do this by engaging the customer in a conversation. Do this to find out why your customer needs your products. Remember, if you expect a customer to be interested in what you have to say, you must first be interested in what they have to say!
CHANGE THE ENVIRONMENT
Changing customer perceptions also demands a change in environment. I’ve told dealers for years to make sure there’s a distinct difference from the tiled showroom floor and the floor inside the F&I office. Often, I suggest that dealers add a one-inch pad under the carpet inside the F&I office. That way the customer knows they’ve left the sales environment once their feet touch that soft, padded carpet.
Your office must also contain a picture of your family. A customer needs to know you’re just like him or her.He or she needs to know you also have a family, a brother, a sister, a spouse, kids, a dog and a cat. If you don’t have a family, go down to Walgreen’s and buy a frame. It’ll have a family in it.
Your office should also contain a conversation starter; something unique or unusual that will help you break the ice with the customer. It could be an autographed picture of someone famous, a baseball or golf club. It can even be that “computer on wheels”device that helps customers understand the need to buy a vehicle service contract. A scenic picture on the wall will help relax the customer.A live plant also helps change the environment. It tells a customer a lot about you. The great thing about having a healthy plant in your office is you have to take care of it. This makes you a caregiver. A candy dish makes a customer feel welcome. It says,“We’re glad you’re here!”
Some things your office should NOT contain include manufacturer’s promotional materials or sales awards. And there should be absolutely NO product brochures
visible when they walk into your office. A brochure immediately tells a customer you’re going to try and sell them something. It’s also a ticket for the be-back bus because it communicates the fact they don’t have to buy today. What it says is they can take the brochure home and think about it.
CHANGE THE EXPERIENCE
Selling our products isn’t something we do to someone, it’s something we do for and with them. In the F&I office, understanding a customer’s wants, needs and concerns must always precede any attempt to sell them something. Selling F&I products isn’t just about helping the dealership, it’s about helping the customer! Selling F&I products to an informed consumer depends upon your ability to find and fill his or her needs … NOT on your ability to get people to buy something they don’t want, and don’t think they need. If you’re not genuinely trying to help the customer, then the F&I process is adding no value to his or her purchase experience. If the F&I process is not adding value to the purchase experience, then it is alienating your customers. And that hurts customer satisfaction. There are two questions you need to answer: How can you ensure you’re helping as many customers as possible, and how can you remove the pressure customers feel when going through the F&I process?
Easy … use a menu to present every product to every customer every time. Give the customer options, not sales pitches. The use of a menu can dramatically reduce the amount of time customers spend in the F&I office. A menu allows customers to select the products they want,and ask questions or voice concerns about the ones they don’t think they need. This allows us to focus on what is important to the customer, and give him or her a chance to discuss why that product may be especially important to them. Rather than “selling,” you’re simply reviewing options, and trying to help the customer make the right decision based upon their unique situation. Getting rid of that warning sign requires the F&I process to be an enjoyable part of the purchase experience.
A financial services professional must get down off his or her throne, bring that customer back to the F&I office as quickly as possible and remember the most important part of your job is to help customers. This is achieved by changing the environment, as well as changing the experience. That means helping every customer make the best decision for him or her and his or her family. If your customer doesn’t leave your office with a smile, there’s a good chance that warning sign might just be outside your office the next time he or she is looking for a vehicle.
Ron Reahard is president of Reahard & Associates Inc., an F&I training and consulting company. You can contact Ron at 866 REAHARD. On the web at: http://www.go-reahard.com/home.html
BACK TO THE AFI TODAY HOMEPAGE:
Print this article for your records.
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
Saturday, December 27, 2008
A Look Back at 2008
Thank God 2008 is almost over.
There were many good times in 2008.
We had some tough times as well -
(About an hour each day wasted zoning out right here).
May much fortune rain upon the retail automotive
industry in 2009 (Please God).
Maybe we should ask the Blue Genie.
Ah, Time for another glass of good Merlot
AFI
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
There were many good times in 2008.
We had some tough times as well -
(About an hour each day wasted zoning out right here).
May much fortune rain upon the retail automotive
industry in 2009 (Please God).
Maybe we should ask the Blue Genie.
Ah, Time for another glass of good Merlot
AFI
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
Back in 1929 Financial Crash it was said that some Wall Street Stockbrokers and Bankers jumped from their office windows and committed suicide when confronted with the news of their firms and clients financial ruin. . .
Many people were said to almost feel a little sorry for them . . . . . .
In 2008 the attitude has changed somewhat:
Happy New year!
AFI
To measure a "well-run" automotive F&I Department, visit: http://www.AutoFinanceInsider.blogspot.com
Many people were said to almost feel a little sorry for them . . . . . .
In 2008 the attitude has changed somewhat:
Happy New year!
AFI
To measure a "well-run" automotive F&I Department, visit: http://www.AutoFinanceInsider.blogspot.com
Wednesday, December 24, 2008
Turn off the damn TV in the waiting room!
By: Dealers Edge
We are being bombarded with analysis - much of it trying to predict when we will bounce off of the bottom of this painful recession.
Earlier in December we hosted a Web Conference that featured seven of the brightest minds in dealership fixed operations. These seven experts spent 30 minutes each offering their best advice for how to cope with the recession as a service manager. Over 700 locations registered for this event and their post-Webinar comments were almost universally enthusiastic.
In his presentation, one of Ed Kovalchick's recommendations was for you to "Turn off the damn TV in the waiting room."
Ed went on to explain that most often the TV is tuned to a cable news channel and that could only depress your customers even more as they waited for their vehicle to be serviced. Great advice! (He further suggested that you play DVDs of classic movies instead.)
For most news outlets, it's not news, unless it's bad news. I am a "glass half-full" guy and while I like to be well-informed, I am also very skeptical when listening to pundits and other so-called experts as they attempt to predict what the most savvy economist will tell you cannot be predicted.
So it is with that caveat that I offer to you some economic analysis from one of my favorite economists- Brian Westbury is the Chief Economist with First Trust and is often seen on business news shows and quoted in newspapers and magazines. I like him because he is not always so negative and within my limited ability to understand what economists are saying, he makes sense to me.
But that is only my opinion - you make up your own mind. Westbury recently wrote and article entitled, "We Are the Catalyst," exploring the concept of an event or happening that will signal the reversal of the downward spiral the economy appears to be in.
It's an interesting take on the current state of affairs and I invite you to read it for yourself. Westbury's- "We Are the Catalyst" While you are on the First Trust Website, you might want to look at a couple of videos at "Westbury's 101." The first is dated from December 3rd and is entitled "Perspective on Recession."
Link to "Perspective on Recession" (You may have to click on the link by that title once on the page.) The second is from December 12th is titled "Retail Sales Show Bounce in Velocity."
Both short video clips offer some insight into our present down-turn that you are unlikely to here while watching the mainstream news shows. To view "Retail Sales Show Bounce in Velocity"
I know there are plenty of economists that will take the same data and project an opinion 180 degrees from Westbury's. But it is good to know that someone has a bright outlook.
And please take Ed Kovalchick's advice - "Turn off the damn TV" - at least until next Monday.
Merry Christmas to all and to all a good night.
Good Stuff.
AFI
To measure a "well-run" automotive F&I Department, visit: http://www.AutoFinanceInsider.blogspot.com
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
We are being bombarded with analysis - much of it trying to predict when we will bounce off of the bottom of this painful recession.
Earlier in December we hosted a Web Conference that featured seven of the brightest minds in dealership fixed operations. These seven experts spent 30 minutes each offering their best advice for how to cope with the recession as a service manager. Over 700 locations registered for this event and their post-Webinar comments were almost universally enthusiastic.
In his presentation, one of Ed Kovalchick's recommendations was for you to "Turn off the damn TV in the waiting room."
Ed went on to explain that most often the TV is tuned to a cable news channel and that could only depress your customers even more as they waited for their vehicle to be serviced. Great advice! (He further suggested that you play DVDs of classic movies instead.)
For most news outlets, it's not news, unless it's bad news. I am a "glass half-full" guy and while I like to be well-informed, I am also very skeptical when listening to pundits and other so-called experts as they attempt to predict what the most savvy economist will tell you cannot be predicted.
So it is with that caveat that I offer to you some economic analysis from one of my favorite economists- Brian Westbury is the Chief Economist with First Trust and is often seen on business news shows and quoted in newspapers and magazines. I like him because he is not always so negative and within my limited ability to understand what economists are saying, he makes sense to me.
But that is only my opinion - you make up your own mind. Westbury recently wrote and article entitled, "We Are the Catalyst," exploring the concept of an event or happening that will signal the reversal of the downward spiral the economy appears to be in.
It's an interesting take on the current state of affairs and I invite you to read it for yourself. Westbury's- "We Are the Catalyst" While you are on the First Trust Website, you might want to look at a couple of videos at "Westbury's 101." The first is dated from December 3rd and is entitled "Perspective on Recession."
Link to "Perspective on Recession" (You may have to click on the link by that title once on the page.) The second is from December 12th is titled "Retail Sales Show Bounce in Velocity."
Both short video clips offer some insight into our present down-turn that you are unlikely to here while watching the mainstream news shows. To view "Retail Sales Show Bounce in Velocity"
I know there are plenty of economists that will take the same data and project an opinion 180 degrees from Westbury's. But it is good to know that someone has a bright outlook.
And please take Ed Kovalchick's advice - "Turn off the damn TV" - at least until next Monday.
Merry Christmas to all and to all a good night.
Good Stuff.
AFI
To measure a "well-run" automotive F&I Department, visit: http://www.AutoFinanceInsider.blogspot.com
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
Wednesday, December 17, 2008
Backseat Driver - Let's Bail Out GM
A Good Article by Jerry Flint
Let's stop kidding ourselves. If General Motors is going to survive in the U.S., it will need government-guaranteed loans. Just between us capitalists, is there anything wrong with that? In 1980 we guaranteed $1.5 billion of private loans to Chrysler, which was much smaller than GM is today. The government made $400 million on the deal.
We're lending $120 billion to an insurance company. There's $700 billion set aside for banks and others whose leaders enriched themselves while ruining their companies and our economy.
The leaders of GM have made their mistakes--plenty of them--but they didn't enrich themselves beyond decency as those other executives did. Today's economic problems, brought on by subprime mortgages, credit default swaps, a credit freeze and a stock market collapse, were caused by those other folks.
We need to decide if we want a domestically controlled auto industry. We won't run out of cars. Toyota (nyse: TM - news - people ), Honda (nyse: HMC - news - people ), Mercedes and BMW will make sure of that. But the auto industry created the American society we know today. If this industry can't survive, what can?
We might ask ourselves if Japan would allow Toyota to go down in these circumstances or if Germany would let Volkswagen (other-otc: VLKAF.PK - news - people ) fail. We should also ask whether those foreign companies will build the tanks and trucks that we might need someday.
A collapse of GM would bring a huge job loss, close to 100,000 people on its own payroll, plus hundreds of thousands of others in dealerships and supplier industries, heavily concentrated in the Midwest. We'd pay a price for this in unemployment insurance, medical costs, the squeeze on schools because of tax losses and all the things that go with such devastation.
By now I am sure most of you realize the seriousness. GM could be out of money by the middle of next year. GM has successful operations in Europe, Brazil and China, but sacrificing them to save the American business would fail and would destroy chances for a future recovery.
At the same time it was enacting the bailout legislation, Congress approved a separate $25 billion package for the auto companies in Detroit, but that is only for retooling 20-year-old factories, and I doubt if any of that cash will get passed out for another year. GM needs money now to keep the business running until the tide turns.
There is talk of some sort of GM-Chrysler combination. All this would mean, as far as I can see, is that more factories would have to be closed, more workers laid off, more auto dealers be allowed to collapse.
We owe GM some help. The company helped save this country in World War II. GM paid such great wages and benefits that an entire middle class of workers was created. And it built some great cars.
Maybe you're driving your Mercedes to work and you're thinking: "What has GM done for me lately? We're not a manufacturing economy anymore. We're technology, service, finance. Let those autoworkers, who make too much money anyway, get jobs at Wal-Mart (nyse: WMT - news - people )." But when GM gets killed, it's bad for business everywhere, and we're supposed to do something about it.
Taxpayers should get stock warrants so they win if GM turns around. There should be some sacrifice by the workers whose jobs we would be saving. (Workers gave up $1 an hour in the Chrysler deal.) We should make sure that loan guarantee money does not get moved into union funds, such as the one that GM has promised the UAW in return for taking over health care costs.
The biggest question is the management and board of directors. This company has been sinking for decades, losing market share year after year, building cars that didn't match those of foreign competitors--who build them here, too, by the way. I would demand a new board of directors for sure, including some people who know something about the automobile business.
GM has finally woken up, at least as far as the vehicles go. The new cars and trucks coming off the lines are among the best. But this management doesn't inspire anyone. It will take a great leader to bring GM back to prosperity, the way Lee Iacocca saved Chrysler and, a few decades before that, George Romney saved American Motors.
Now, you may find even this small dose of socialism to be intolerable. You may think taxpayers have no responsibility to save private companies. But General Motors (nyse: GM - news - people ) needs help if it is going to survive in the U.S. It's about time that GM executives admit this and ask for that help. What's good for America is good for General Motors--and vice versa.
Jerry Flint, a former Forbes Senior Editor, has covered the automobile industry since 1958. Visit his homepage at www.forbes.com/flint.
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
Let's stop kidding ourselves. If General Motors is going to survive in the U.S., it will need government-guaranteed loans. Just between us capitalists, is there anything wrong with that? In 1980 we guaranteed $1.5 billion of private loans to Chrysler, which was much smaller than GM is today. The government made $400 million on the deal.
We're lending $120 billion to an insurance company. There's $700 billion set aside for banks and others whose leaders enriched themselves while ruining their companies and our economy.
The leaders of GM have made their mistakes--plenty of them--but they didn't enrich themselves beyond decency as those other executives did. Today's economic problems, brought on by subprime mortgages, credit default swaps, a credit freeze and a stock market collapse, were caused by those other folks.
We need to decide if we want a domestically controlled auto industry. We won't run out of cars. Toyota (nyse: TM - news - people ), Honda (nyse: HMC - news - people ), Mercedes and BMW will make sure of that. But the auto industry created the American society we know today. If this industry can't survive, what can?
We might ask ourselves if Japan would allow Toyota to go down in these circumstances or if Germany would let Volkswagen (other-otc: VLKAF.PK - news - people ) fail. We should also ask whether those foreign companies will build the tanks and trucks that we might need someday.
A collapse of GM would bring a huge job loss, close to 100,000 people on its own payroll, plus hundreds of thousands of others in dealerships and supplier industries, heavily concentrated in the Midwest. We'd pay a price for this in unemployment insurance, medical costs, the squeeze on schools because of tax losses and all the things that go with such devastation.
By now I am sure most of you realize the seriousness. GM could be out of money by the middle of next year. GM has successful operations in Europe, Brazil and China, but sacrificing them to save the American business would fail and would destroy chances for a future recovery.
At the same time it was enacting the bailout legislation, Congress approved a separate $25 billion package for the auto companies in Detroit, but that is only for retooling 20-year-old factories, and I doubt if any of that cash will get passed out for another year. GM needs money now to keep the business running until the tide turns.
There is talk of some sort of GM-Chrysler combination. All this would mean, as far as I can see, is that more factories would have to be closed, more workers laid off, more auto dealers be allowed to collapse.
We owe GM some help. The company helped save this country in World War II. GM paid such great wages and benefits that an entire middle class of workers was created. And it built some great cars.
Maybe you're driving your Mercedes to work and you're thinking: "What has GM done for me lately? We're not a manufacturing economy anymore. We're technology, service, finance. Let those autoworkers, who make too much money anyway, get jobs at Wal-Mart (nyse: WMT - news - people )." But when GM gets killed, it's bad for business everywhere, and we're supposed to do something about it.
Taxpayers should get stock warrants so they win if GM turns around. There should be some sacrifice by the workers whose jobs we would be saving. (Workers gave up $1 an hour in the Chrysler deal.) We should make sure that loan guarantee money does not get moved into union funds, such as the one that GM has promised the UAW in return for taking over health care costs.
The biggest question is the management and board of directors. This company has been sinking for decades, losing market share year after year, building cars that didn't match those of foreign competitors--who build them here, too, by the way. I would demand a new board of directors for sure, including some people who know something about the automobile business.
GM has finally woken up, at least as far as the vehicles go. The new cars and trucks coming off the lines are among the best. But this management doesn't inspire anyone. It will take a great leader to bring GM back to prosperity, the way Lee Iacocca saved Chrysler and, a few decades before that, George Romney saved American Motors.
Now, you may find even this small dose of socialism to be intolerable. You may think taxpayers have no responsibility to save private companies. But General Motors (nyse: GM - news - people ) needs help if it is going to survive in the U.S. It's about time that GM executives admit this and ask for that help. What's good for America is good for General Motors--and vice versa.
Jerry Flint, a former Forbes Senior Editor, has covered the automobile industry since 1958. Visit his homepage at www.forbes.com/flint.
Tags: Automotive Finance F&I Finance & Insurance
Credit Repair va, Credit Repair blog, Credit Restoration
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