Contributing Author: Hollis Goode, Regional Vice President, Dealer Services, EFG Companies
Overcoming objections is quite possibly one aspect of the F&I office that is focused on the most. Classes abound on this topic. Dealers, in tune with their teams, provide one-on-one coaching sessions on this alone. After all, the more successful an F&I manager is at overcoming objections, the better their numbers, resulting in increased profit for the dealer.
I’d posit that many training courses/one-on-one sessions start something like this:
“The vehicle service contract is too expensive. Go.”
Then the F&I manager must work to overcome an objection for which they have no background information on the potential customer in front of them. There could be several reasons why the customer thinks the coverage is too expensive.
Do they think they won’t need or use it? How often do they typically experience breakdowns based on their driving habits, or how often do they get their vehicle serviced?
Are they concerned with monthly payments? Is there a way to position the payments in a way that makes more sense to them?
Do they think they can get service on their vehicle done at a cheaper rate than the deductible on the service contract? What types of breakdowns are associated with their driving habits? Can you review the total cost of one of those breakdowns and compare it to the contract?
Each of these scenarios requires information that should be gleaned from the customer before the F&I presentation. The more information an F&I manager has before the presentation, the better able they are to tailor the presentation to make it relevant to the customer in front of them. In most situations, consumer objections come from a lack of understanding how a product benefits them personally. Simply rattling off product benefits without emphasizing the ones the customer would care about leads to a situation where they tune out and start objecting.
Rather, starting out each product presentation with, “Based on what you told me earlier… we have a product that could save you significantly…” keeps the customer invested in the conversation, allowing the F&I manager to have a more successful dialogue. Demonstrating personal value makes it much easier for consumers to rationalize product cost, and reduce or eliminate other potential objections.
However, this all stems from learning as much about the customer as possible, such as their driving habits, whether they live in a city or rural area, their commute distance, how often they purchase new vehicles, etc. But of course, how much longer would the F&I process be if there was an interview before each F&I presentation?
Good news! There is a way to gather this information without extending the timeline for the F&I process. It’s called creating a team approach between sales and F&I.
F&I managers can gain greater awareness and gather much information by:
- being out of the office and walking the floor;
- assisting the sales team by taking turns;
- gathering information from the customer; and,
- being available to address all questions related to down payment and rates prior to wrapping up the sale.
Meeting with the customer early in the process helps ease the customer’s fears related to the financing options that will come later.
Sales team members have the opportunity to glean a large portion of this information during the sales process and test drive. In fact, as they gather the necessary information for loan funding, they can also begin asking the questions necessary for the F&I presentation. This way, when they turn the customer over to the F&I manager, they can equip the manager with as much information as possible to create a smooth and efficient F&I presentation.
Creating a cohesive unit between sales and F&I is vital for lasting dealership success, with benefits extending well beyond successfully reducing and overcoming objections, like reducing the F&I timeline and improving the overall customer experience. With almost 40 years of experience in retail automotive, EFG Companies knows how to develop high performing teams that work together to increase dealership profitability, CSI scores and customer retention. Contact us today to find out how.