Who Pulls the Credit Bureau?
In many dealerships, it is the task of the F&I manager to complete the credit interview, observe the customer as he complete the credit application, and then excuse himself as he goes into yet another office to pull the credit bureau. Not only does this process leave the customer alone for an undefined period of time, it is also wasting valuable time.
I realize that the processes of the metro areas differ from those of the rural areas. We must be aware that everyone’s time is a valuable commodity and that once it is spent it can never be replenished. Therefore being respectful of time spent is a plus regardless of where your business is located.
During the interview
Let’s review the practice of the sales consultant obtaining the credit application. I am most familiar with this process, and it has proven itself to be time efficient. Let us presume that the sales consultant during the interview process has uncovered that the client has experienced some credit challenges in the past. The sales consultant should take the time to complete a credit application.
The sales consultant should then take the completed documentation to the sales manager, and the sales manager should run the credit bureau and determine the extent of the credit difficulties. Perhaps the F&I manager will need to be brought in to complete a credit interview.
F&I manager discovers the reasons
I am convinced that the sales consultant should not be the one who makes inquiries about the credit history. History has shown me that when the sales consultant learns of the credit difficulties, the level of enthusiasm for the deal wanes followed by a curtailed vehicle presentation. The result is often a lost deal, a discouraged sales consultant, and no productivity for the balance of the day.
It is far better to have the managers receive all the negative news; perhaps they have a way to make lemon aid out of the basket of lemons that sits in front of them. As a manager we should want each of our sales consultants greet every prospect with a high level of enthusiasm and expecting to make a deal which is good for all parties.
Often when a sales consultant is privy to the credit score, the level of enthusiasm for the deal plummets to the level of the credit score. The winners focus upon the possibilities, of the deal. They find a way to make most of the deals. Yes, some require additional work. Those are the ones that develop life-long customer ties.
Negative credit does not remain status quo
Typically, customers who currently have credit difficulties work themselves out of the current circumstances. After time they become mainstream finance customers. Where they choose to purchase their next vehicle depends on how they were treated at the last dealership they purchased from.
Leaving customers in a face-saving environment is key in building customer retention. Provide an office with a closed door that will ensure privacy when the past credit issues are being discussed.
It all begins with who pulls the credit bureau
The best practice is to have the sales consultant obtain the credit application. Have the sales manager pull the credit bureaus. Utilize the power of two when it comes to structuring the deal for a lender, and use the power of two to conduct the credit interview.
Leave the sales consultant in a position where he can share his enthusiasm for the deal with the customer. Enthusiasm will locate an open window where a door is closed.
World Of Special Finance Magazine, June 07 Issue, P. 51