Addressing the Customer’s Inquiry about Rate
Q. What is the best way for a sales consultant to address the customer’s inquiry about rate?
A. The answer depends on when the customer brings up the rate question.
During the presentation or demonstration process?
If so, the question is a buying signal from the customer. Ask the customer if this is the vehicle they wish to take delivery of. If the response is yes, then tell them, “I do not know what the current rate is, they seem to change often. Follow me and we’ll get to work on the figures that will make it easy for you to have the vehicle you desire.”
After a payment has been quoted?
A proper payment quote should be immediately followed by the terms and APR used to calculate the estimated payment. And the sales consultant should always follow up any payment quotes with the statement that “All payments and terms are dependent upon final lender approval.”
Upon arrival at the dealership while meeting the sales consultant?
This is a sure sign they have been shopping and are rate sensitive. In this instance, the sales consultant should say, “I do not know the rate. It is all I can do to keep up with the inventory! The dealership has a business manager who makes it easy for everyone to purchase a vehicle every day. Before you consult with the manager, we need to select a vehicle that will meet your needs. Follow me.” The sales consultant should then turn and begin to walk somewhere. The customer will be in tow.
The rate depends on the amount financed, the customer’s credit history, the term requested, and the customer’s equity in the vehicle being purchased. Remember the acronym CASE: Credit, Ability, Stability, and Equity. As a sales consultant, you do not know any of these CASE factors when you meet a new customer. Follow the established process in your store and take no short cuts. Best practice is to use third party influence: “The lender requires ____ down payment, the used inventory manager said ________, and the sales manager said ________.” The professional sales consultant should take on the appearance of being an advocate for their client without working from invoice and buy rate. The professional sales consultant sells the people, the place and the process. They create value in their own services and in the dealership before presenting the products. Gather the facts, and let the managers handle the issue of rate.
RV Executive Today, October 2002