Hollis Goode
Regional Vice President
EFG Companies
How comfortable is your sales team with asking for cash down payments on every transaction?
With the plethora of $0 down advertising, it’s become more commonplace for customers to expect to put $0 down on their vehicles. However, as any F&I manager will tell you, this makes it more difficult to secure a loan that is beneficial to both the dealership and the customer.
Take a look at the deals coming to the F&I office. If more than 20% of those deals are for $0 down, then there is a breakdown between your sales staff and the F&I desk.
Granted, the sales team might find it difficult to broach the subject. After getting a “no” once, they might give up, assuming they can’t negotiate. This mindset needs to be overcome in the same way you train your sales people to ask for the sale and negotiate the sale price. The more training and information you give your sales people, the less anxiety they have when asking for the sale, for a down payment, for a trade-in value, etc.
Remember, it is always better to ask than to assume the answer is no. After all, we all know what assuming makes out of you and me.