Don&'t ignore F&I customers on used-car lot

http://www.autonews.com/apps/pbcsi.dll/storyimage/CA/20160622/FINANCE_AND_INSURANCE/306229995/H2/0/H2-306229995.jpg&MaxW=200

If dealerships don’t approach pre-owned car buyers with the same enthusiasm they show their new-car buyers, they’re losing money. That’s especially important now that stores are seeing a major influx of off-lease and other pre-owned cars.

“We spend every bit as much time with our used-car customers as we do our new-car customers,” said Tyler Corder, CFO of Findlay Automotive Group, which has 28 stores in five states and is headquartered in Henderson, Nev. “The key is getting the finance manager involved early, when the customer is in the showroom. We do a needs assessment, and find out about their driving habits. We also ask specifics about their last cars, including how long they keep cars. Then we can suggest service contracts that work for their driving habits and budgets.”

The finance managers often accompany prospective buyers on test drives, deepening their understanding of the buyers’ needs and giving them a chance for casual chat.

“The most important thing is not to be phony,” Corder said. “People put up defenses if they think a salesperson is giving a pitch or using a canned script. You have to be your own personality and be likable, friendly, have a professional appearance. It’s a real science.”

Special Correspondent Nancy Dunham asked other F&I professionals how they approach their pre-owned customers. Here’s what they said.

Nick Breault

Business Manager 

Smail Auto Group 

Greensburg, Pa. 

“We like to introduce ourselves early in the process [and] customize the discussion based on the individual customer. We have a lot of information by the time they come to us based on their licenses, what they have told the salesperson and any F&I information we have gathered. One thing: It’s important never to lie or pretend to know something you don’t. I stress to everyone that if they don’t know any answer, tell customers you will find out. Take the time, get the right answer and tell them. That builds trust and confidence.” 

Phil Maguire

Owner and president 

Maguire Family of Dealerships 

Ithaca, N.Y. 

“We don’t have finance and insurance managers. We are upfront with the lowest price and financing. Our salespeople are not compensated on commission because we want them to take customers cradle to grave. Our philosophy is to have our salespeople talk about F&I right in the beginning. A key to that success is infusing steps in the sales process. At the beginning, we sit down the customer and run through our sales process — what we’ll do, what they can expect. That plants the seed and takes the unsavory feelings away from customers. Over the years, we found we were offering too many products. Now we focus on several products [that are bundled] instead of going through 10 to 15. So we might bundle wheel-and-tire coverage and then package windshield, dent and key replacement. We found it’s important to keep it simple.” 

Vince Ramos

Finance Director 

Lehigh Valley Acura 

Emmaus, Pa. 

“We let the guys each develop what they’ll say as long as they use 100 percent of the menu system 100 percent of the time. We might tell customers when a product’s not necessary for them, but we always let the customer make the decision. Whether we’re selling a new car or pre-owned, we try to always have the finance manager go out and meet the customer at the end of the sales process. Sometimes customers say, “We don’t want to buy anything extra.’ At that point, we just ask them to please take a few minutes to listen to us, so we’re in compliance. We tell them it won’t take more than 15 minutes, and we stay with that. We also assure [them] they aren’t obligated to purchase anything.” 

Kent Winningham

Special Finance Manager (Pre-owned) 

Gorno Ford 

Woodhaven, Mich. 

“It’s important to remember you aren’t trying to sell something; you’re trying to educate clients about the products available. I meet them in the showroom, so when they come back to me I’m not a stranger. We use a full disclosure menu and there are five to six things we offer, but we approach it as a chat in which we educate them about things that will or will not work for them. You can really gauge how well you’re doing by looking at cancellation rates within 90 days or six months. What good are high sales if everything is canceled?” 

William McCormick

Sales representative 

Bert Wolfe Toyota 

Charleston, W.Va. 

“It’s important to start out talking about them, their family and their lives. That’s a great way to get them to relax so you can peel the layers back and find out what they need. When we do talk about the car, I explain how F&I products will protect their investment. I’ll take them to service and pop the hood and explain what the factory warranty covers and why an extended warranty is highly advised. We talk about paint and fabric protection, especially if they have children. It’s a great way for customers to begin to take mental ownership of the car. Then when they go through [the F&I menu], they’re more engaged.”

Source link

Don&'t ignore F&I customers on used-car lot