Lots of Deals – Part II
Presenting the product on your feet and talking numbers in your seat has been the game plan since selling began. Fear of rejection can cause sales personnel to talk numbers with the customer on the lot. However, when salespeople make statements out of fear, their sales managers and the F&I office cannot meet the customer’s expectations set in motion by words spoken on the lot.
An on-target interview
If the customer interview is on-target, the sales representative will be in a better position to present the vehicle that will match the customer’s budget. In reviewing dealership web sites, I find that many dealerships provide a payment calculator that works two ways: First, if the customer knows the amount to finance, the term financed, and the APR, the site will show their vehicle payment. Second, the site will also indicate the price range the customer should look in, if they know their down payment availability and the amount of vehicle payment they can afford.
Just think how much time could be saved if the salesperson’s interview of the customer yielded the same type of information, which could then be relayed to the sales manager? The customer would then be shown the vehicle he/she can afford, instead of what the salesperson wants to drive. If that comment sounds a bit harsh, ask yourself how many deals are lost on the lot when the salesperson presents too much vehicle. Customers will not put themselves in a place to lose face. Instead, they simply move on to the next lot, where they guide the salesperson to a less expensive vehicle and buy there.
The right vehicle fit
The right vehicle fits the budget and satisfies the needs of the customer. Within the world of special finance deals, the larger part of this equation is affordability. When a customer is in the right vehicle, payments are made on time and credit improves with time. With improved credit, the customer will be able to enjoy the benefits of mainstream financing.
Keep in mind that often, with the credit-challenged client, we seek finance approval prior to presenting any vehicle. That way we know what limitations are in front of us and are prepared to take on the role of lot tour guide, directing the client to the proper selection of vehicles.
I believe every customer likes choices, so select no more than three vehicles to present to the customer. Everyone is entitled to a full-power vehicle presentation. We create value in the vehicle during the walk-around and presentation. Remember, every time you point out a feature you must connect it with a benefit and use a tie-down question, as in the examples that follow, to ensure that you and the customer are walking together down the same path.
“Notice the large windshield so that you can see the road easily, which means increased safety. That is important to you and your family isn’t it?”
“As you know, the doors have side air bags so the passengers will be protected in the event of an accident, which means increased safety. That is important to you and your family, isn’t it?”
Make sure the customer drives the vehicle, even if he/she may have seen a similar vehicle somewhere else. Every vehicle, especially an “experienced” one, has a personality and a different feel behind the wheel. Part of the salesperson’s job is to make certain the vehicle and the customer enjoy a great fit.
Remember also that our customers do not come in the same sizes, and a 6’ 4” person may not fit into a vehicle the way a 5’ 3” person does. Is there adequate legroom? How is the headroom? Can they reach the radio easily? How is the visibility all the way around the vehicle? Is the cargo space large enough for their needs? Does the back seat have enough room for their passengers? How is the handling on the road?
Signs that buy
Watch for buying signals. When the vehicle feels right to the customer and meets all of his/her needs, he/she will begin sending buying signals. These signals are your cue to return to the dealership from the demo ride and park in the “sold line” so no one else will drive the vehicle.
Buying signals can be as simple as the customer asking:
“What are my payments?”
“How much down would this vehicle require?”
“How long can I finance this vehicle?”
“How much will the managers pay for my trade-in vehicle?”
Lots of profit
When we present vehicles that fit the customer’s budget and driving needs, the write-up is simply a matter of making the financial presentation. Since the sales representative already knows the vehicle shown will fit the customer’s budget, there is no need to fear the numbers. As a result, F&I will not have to grind the lenders so hard, and dealership profitability will increase. Ease of doing business generates repeat and referral business. Repeat and referral business yield solid business profits. It’s a good deal all around.
World of Special Finance, September 2006