Kelly’s Korner: Length of F&I Presentation
Question: How long should a presentation take in the sales business office?
Fidgety in Sales Department
Answer: Dear Fidgety:
Most sales representatives want a client in and out of the sales business office in microseconds. The simple fact is that the documentation alone takes time. Many deals arrive in the sales business office when there is still doubt in the mind of the customer. When deals are still pending, the sales business manager becomes both the closer and the financial officer. The situation creates extra anxiety for both the sales representatives and the customer. Minutes can seem like hours.
The presentation itself takes only 15 minutes or so. Studies show that the prime presenting time is the first fifteen minutes after a customer enters the sales business office. Time is therefore a precious item and needs to be used wisely. The entire process needs to be completed within 30-40 minutes. Please bear in mind the time will vary, depending upon the customer’s concerns and the amount of paper work to complete. As always the sales business manager should give a full and complete disclosure of all terms and conditions on the purchase agreement / installment contract.
Question: We do not pull credit bureaus at our dealership. We instead rely on our lenders to pull them and to evaluate the information. We feel this limits our legal liability. Should a dealership pull credit bureaus on its customers?
Limited Liability in Oregon
Answer: Dear Limited Liability:
With the recent changes in the Fair Credit Reporting Act, a dealership should be careful about when and why they pull bureaus. We need to have the credit bureau information in order to quote accurate payments on a previously agreed upon selling price with the down payment taken into consideration. Many lenders have been promoting a tiered system for both terms and APR. Without knowing the customer’s credit history, it is difficult to know what tier or plan the customer qualifies for.
It is unlawful to use the credit bureau to gain an advantage in the deal negotiations. Therefore, timing of the bureau is critical. The deal should already have been agreed to. All that should remain is the question of best method of payment.
Credit bureau information is confidential and should be treated as such. For further details consult both Regulation B and the Fair Credit Reporting Act.