Category: Dealership Training

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Dealership Training EFG Companies

Leveraging Auto Sales During Tax Season

A study done in February 2011 by the National Endowment for Financial Education shows that close to 50% of taxpayers planned to use their tax refund to pay down debt, and another 44% planned to save their refund. Indeed, today’s economic climate moves consumers to be far more cautious about how they spend their refunds, and will only spend that money on what they deem to be a smart investment.

While some may view this as a challenge to auto dealers seeking to use tax season to leverage sales, this is a great time to educate your consumers about the value of a new automobile as a smart investment in themselves or their family.

Tax Refund Marketing: Is It Enough?

Auto dealers understand that cars fall into the “smart investment” category. They also understand that tax season may be the only time of year when consumers will have access to a substantially large chunk of cash that can be spent on a vehicle.

However, with one out of five Americans suffering from poor credit, those consumers aren’t willing to take the risk of buying a car with their tax refund and still accruing a large monthly payment as a result of that purchase. As a result, many dealers are finding out that it’s simply not enough to market the use of the tax refund as a viable purchasing option to potential buyers.

Trade-ins AND Refunds Go Hand–in-Hand

The key for auto dealers is to educate consumers about the value of investing in a new car using both their tax refund AND a trade-in. A marketing strategy that helps the consumer understand their smart investing options will pave the way for willing buyers to take the plunge and make that new car their investment.

How then, does the dealership market to the potential tax refund car buyer who is looking for a wise investment and who needs a new vehicle, but is hesitant about trading in? Here are some points to consider when constructing an effective auto dealership marketing campaign and conveying the message to potential buyers:

  • The buyer’s trade-in will never be worth more than what it is today. The longer a customer has their vehicle, the older is gets and the more miles they’re putting on it. So the longer they wait to trade-in a vehicle, the less they will get from it.
  • There is a lack of used cars being traded-in for new cars these days, so there is a good chance that the dealership will accept the trade-in.
  • The more a buyer puts down toward the purchase of a new car, the lower their payments will be, so adding a trade-in to their tax refund as a down payment will greatly lower their monthly rates. This is especially important for buyers with bad or no credit to know, because their main concern is most likely the high payments that may come from purchasing a new car.
  • Now is the time to take advantage of low interest rates. As the economy recovers from a difficult recession period, interest rates on auto loans begin to climb. All car buyers, even those whose credit has taken a beating in recent years, who have a good down payment and a trade-in are at an advantage now to purchase a new vehicle with low-interest financing.
  • Tax season can be a time for auto dealerships to leverage sales, provided that the right sales strategy is used to reach out to consumers looking to make a smart investment with their tax return.

Learn more about auto dealership marketing strategies to leverage sales during tax season. Please contact us today or join our social communities for more information.

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Dealership Training The Transcend Group

Strategies for Sales with an Influx of Inventory

In order to compete in this buyer’s market while trying to make year-end sales, it is imperative to have strong strategies for sales with an influx of inventory.  As domestic and foreign manufacturers ramp up their advertising and promotions in an attempt to win more market share and increase demand, dealerships must be prepared to clear the lots as quickly as possible to accommodate increased inventory.  Dealerships need strong teams to successfully manage a more difficult buyer’s market rather than trying to rely on a few top performing salespeople to get the job done.  This makes recruiting and training the best talent to effectively build customer relationships more important than ever.

According to Stephen Roennau, Vice President, Training Services, EFG Companies, “When clearing the lot is a priority, it is an automatic reaction for sales teams to ignore customers’ wants and needs and just push the deal.  This reaction is a classic mistake made by most sales teams.  In a buyer’s market, it is even more important to establish relationships with the customer.”

When a customer can go to any dealership to get the vehicle that they want at the price they want, the ability of sales teams to build relationships makes all the difference.  People often give away tidbits about their lives during discussions about the vehicles they are considering purchasing.  A good listener will pick up on these details and use them the help the customer find exactly what they are looking for.  For example, “I understand you are looking for a vehicle for your family; I know I would want my family members to be in the safest car on the road, and because of that, I would go with this car for these reasons.”  It is also helpful to use reflective listening in conversation and repeat some of what the customer says to ensure understanding by both parties.

Teaching members of the sales team how to build relationships by transforming the mindset from overcoming objections to reflective listening gives dealerships the edge that they need to stand out in a buyer’s market.

For more information about EFG Companies, please contact us or join our social communities.

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Dealership Training EFG Companies F&I The Transcend Group

F&I Training: Four Ways to Keep the Customer Engaged

A crucial part of F & I training is learning how to keep customers engaged while they’re in the finance office.  At EFG Companies, we recommend offering extensive training to your new staff to make the process as efficient and productive as possible.

Every aspect of the sales process should focus on the importance of building a relationship with the customer rather than simply trying to push a sale.  The time spent in the finance office is no exception.  The first step is to make sure that you are always mindful of respecting the customer’s time.  Offering F&I services should be done efficiently so that the customer doesn’t lose interest before the products or services are even offered.

  1. Ask a series of simple questions to determine which products or services best fit the customer’s needs, and focus on those rather than overwhelming the customer with a detailed description of everything.
  2. Offer the customers a variety of options that fit their driving habits and needs.
  3.  Clearly explain how each option could benefit the customer in the long term, based on their identified needs.  This is another opportunity to build a lasting, trusting relationship with the customer.
  4. Before you attempt to respond to any resistance, listen and clarify the objection, make sure to justify your point based on their specific circumstances

It is critical that dealers select the right F&I products for their dealership in order to maximize dealership profitability.  As the innovators behind the award-winning Hyundai Assurance program, our industry-leading assortment of products includes everything from Vehicle Service Contracts to our Drive Forever Limited Lifetime Powertrain Protection. 

For more information about EFG Companies, feel free to contact us or join our social communities.