Schooling The Sales Team On F&I
One of the best ways to ensure that F&I and sales get good grades is to make the F&I manager or director a regular participant in dealership sales meetings.
Knowledge is power and the more you know, the more you can profit from it. The sales department must know; 1) what the F&I department needs to generate accurate and thorough paperwork, and 2) what customers can expect when they are turned over to F&I to complete their purchases. Here are some need to know items an F&I manager can bring to the table:
The Turn Over
When sales is working a deal, keep the F&I manager informed about the status. When the sales work is done, page the F&I manager to greet the customer in the closing area. Introduce the F&I manager as the person who will complete the paperwork and handle the title details. Review the numbers and any adds that will be part of the deal. When customers enter the F&I office they should have peace of mind about what they will get for the price they paid and have confidence that the numbers will not change.
The Credit Application In most dealerships, the salesperson and the customer fill in the credit application. The salesperson must make certain that the figures on the application are accurate and verifiable. Even more important, the application must be neat and complete. If the customer is credit challenged, an illegible credit application will not convey to the lender that this customer really cares about getting the loan approved.
The Rate Question
The rate question is sure to come up when working a deal. Rate and dealer reserve have top billing in customers’ minds these days. A good answer to the inevitable customer’s request for the best rate is to say, “Mr./Ms. Customer, if you look far enough and long enough, I’m sure you will be able to find a better rate. However, this is the rate we are prepared to offer you today.”
Dealership Benefits Package
The F&I department doesn’t want the sales department to sell the finance products, but does want sales to endorse the dealership’s benefits package that will protect your customers’ investments. For example, the salesperson can say that he makes sure he has a service agreement and environmental protection package on his own vehicle and encourage customers to consider the service and protection packages the F&I manager will discuss with them in detail. I once worked with a sales manager who turned every customer over to me with this phrase: “Gary, make sure you tell my customer about those service contracts that will protect him from unexpected, expensive repairs.”
“Cash” Buyers
Most customers who say they are paying cash are actually getting the funds from a lending source such as a credit union, bank or insurance company. Instead of collecting the entire amount of the purchase at the time of sale, collect a 10% deposit and advise the customer the balance will be handled by the financial center, which gives the F&I department an opportunity to do a conversion.
Customer satisfaction is the ultimate goal of every dealership transaction. When F&I and sales go to school together, cooperation and understanding yield superior teamwork. When sales and F&I use the same playbook, the penetration percentage and profit per retail unit increase the dealer’s bottom line. When sales is mindful of F&I matters, it pays well for everyone.
Dealer Marketing, November ‘04 Issue, p.14