Tag: training

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Economy EFG Companies

Good Economy? Bad Economy? It Doesn’t Matter!

Contributing Author: John StephensWith all the news about the government shutdown, national default, government furloughs, finger pointing and crisis talk; everyone is avidly watching Wall Street to gauge how badly the economy will be affected.

Consumers are concerned with keeping their savings intact while dealerships are concerned with fortifying their business to survive a potential economic plunge. Isn’t it time to get off the rollercoaster and stop being thrown for a loop?

So, let’s stop and think about the retail automotive industry for a second.

Whether the economy is good or bad, consumers will still be in the market for a car. Their needs for said vehicle may change depending on the economy. For example, with the latest recession, we saw the trend of consumers purchasing cars that last longer with better gas mileage. They didn’t stop buying, they just changed what they bought and how often they bought it. They also became less brand-loyal.

On any given day, your dealership is competing with at least two other businesses to close a sale. It doesn’t matter whether that day falls in a good or bad economy. The difference between a good and bad economy, is that sale means more in a down economy. So, how do you fortify your business for a more volatile economy?

You go back to basics:

  • Hire Top Performers that consistently deliver results on the sales floor and in the F&I office.
  • Place those Top Performers in roles where they will thrive and train them to maximize their strengths.
  • Focus on customer service, not just the sale. The best sales people see themselves as advisors. They listen to the customer and address their needs with courtesy and respect.
  • Position your dealership as providing value beyond low interest rates. This ties back into customer service and bridges into the F&I office. Consumers are paying more attention to their return on investment just like businesses. Provide products and service that reflect their need to keep their savings intact.

With over 36 years working with dealerships to develop their people and their products to achieve the best results, EFG Companies knows how to take your business off the rollercoaster and chart a course for success. Find out how our recruiting, training and product development will enable you to not only survive in a volatile economy, but also thrive!

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EFG Companies F&I

2013 Pacesetter – EFG Client Star Family of Dealerships

Contributing Author: John StephensEach year, “F&I and Showroom” selects six F&I Pacesetters of the year based on their ability to balance performance with customer satisfaction.  These dealerships set the pace for the rest of the industry with their professionalism and integrity. This year, Star Dodge Chrysler Jeep Hyundai of Abilene, Texas was named as one of the six Pacesetters for 2013.

What sets this family-owned small-town dealership apart?

The Star Family of Dealerships generated maximum PRU and customer satisfaction by taking a customer-centric approach to training and presenting their F&I products with the help of EFG Companies.

In addition to annual compliance training at EFG’s headquarters in Irving, Texas, Star’s producers learned how understanding the customer’s needs and driving habits sets up the product presentation and benefit discussion, as well as providing a strategy for responding to customer concerns.

Hector Lebron, Account Executive, Dealer Services
Right: Hector Lebron, EFG Companies
Left: Jeff Zinsser, Star Family of Dealerships

Once back at the dealership, EFG’s client representative conducted onsite training, reinforcing the methods learned in the classroom. They also provided guidance and a sounding board to both the front lines and upper management. This continuous engagement ensures that the skills learned in the classroom setting stay sharp, generating a higher success rate and PRU with EFG’s dealership clients.

Since becoming an EFG client in 2010, Star has increased PRU from 105 units per month to over 200 units per month in 2013.

  • Average PRU for new vehicles: $1,500
  • Average PRU for used vehicles $1,250

This achievement would not have been possible if Star’s Dealer Principal, Mike Dunahoo, did not believe in treating everyone like family. This not only includes customers, but also employees. In fact, Star Dodge Chrysler Jeep was named “Best Dealership to Work For,” by Automotive News in 2012.

By pairing excellent training, products and engagement from EFG with Dunahoo’s passion for providing the best experience, Star significantly increased product performance to become a 2013 Pacesetter.

F&I and Magazine’s Pacesetters are nominated by dealership employees, general agents, F&I providers and dealership vendors based on their commitment to regulatory compliance, ethics, and to providing a customer-centric sales and F&I process.

Last year, two premier EFG clients were named 2012 F&I Pacesetters.

With EFG’s world class products like MAP and Drive Forever Worry Free (private labeled Maxwell Forever), Nyle Maxwell averaged two products per deal while maintaining a CSI score of 93.4 percent for financial arrangements in 2012. Maxwell also credited continual training from EFG’s Transcend Group for keeping his F&I sales high and his staff motivated and inspired.

The Robbins Auto Mall F&I team touted a 76 percent penetration with EFG’s MAP VSC, and 41 percent with our Signature Finish Appearance Protection products. Robbins attributed the connection between the F&I and sales departments as responsible for such great penetration levels. By placing Top Performers for Robbins Auto Mall and extensive training from the Transcend Group, the sales staff adequately presented F&I offerings at the right time to their customers.

Want to learn how EFG can help your dealership raise the bar? Contact us today!

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Uncategorized

Boost Your New Car Sales Through Leasing

Leasing: Does Your Team See the Light?

Contributing Author: Stephen RoennauLease incentives are around the corner, just in time to take advantage of record lease penetration. Recent vehicle registration data released by Polk stated that new cars accounted for 29 percent of all sales through May, which puts the year on pace to top last year’s rate of 27.6 percent. This is the highest penetration of new cars in the last five years. According to Edmunds, leasing is behind this breakthrough accounting for 25 percent of new cars sold.

At this time, it is vital that your sales team is trained to not only close a sale, but also a lease. The most important question to ask yourself is, “Does my team know how to position leasing vs. a traditional loan?” If you don’t know the answer, then these tips will help refresh your team until you register for EFG’s lease training workshop.

New vehicle sales are outpacing last year’s totals. Why? According to Edmunds, the reason is the surge in leasing, which is on track to smash last year’s record penetration rate of 22%.

Everyone knows that all vehicles depreciate in value as soon as they are driven off the lot. However, few consumers make the connection that their vehicle depreciates at the same rate whether they lease or buy. The only difference lies in what they pay for. Think about what most customers say is their single biggest expense is in owning a vehicle. They either say their monthly payment or gas. The truth is that their single biggest expense may be the hidden cost of depreciation.

Most customers don’t learn about this expense until it’s too late – at trade-in time, when dealerships offer them less than what they expected or needed. Offering them a lease is a great way to manage the depreciation expense and make the trade-in process easy.

When positioning leasing, just as with purchasing, your sales team needs to understand their customers’ needs.
If they have a predictable lifestyle, drive a low average number of miles, properly maintain their car, and want to make trade-in easy, then leasing may be a good option. Top selling points for a lease include:

    • You are protected from market risks that affect the value of your vehicle.
        • Rebates
        • Bad press
      • Discontinued model
    • You may lower your monthly payment without being stuck in a long loan.
  • You get to drive a newer model car with the latest technology and safety features.

Advise your customers that when they buy, they commit to the entire cost of the vehicle – no matter how many miles they drive or how long they keep it.

While leasing is on the rise, there will always be people who prefer to buy. That’s why it’s important to ask the right qualifying questions before positioning a lease, such as:

    • How often would you like to trade in your vehicles?
    • When was the last time you paid off a vehicle and kept it for a while?
    • How many miles do you drive per year?
    • Do you trade your vehicles or sell them outright?
  • When was the last time you were happy with the amount offered for your vehicle at trade-in?

In the end, your sales team needs to help their customers decide what matters to them. The decision to lease or buy depends entirely on their lifestyle and what they feel comfortable with.

With more than 35 years of insight into the consumer mindset in the auto retail space, EFG’s Transcend Group knows how to train your team to readily position the benefits of leasing compared to 3, 4 and 5 year retail loans. They also gain a deeper understanding of how closing a lease benefits them and the dealership.

To take your team members beyond the fundamentals of leasing, register for our Lease Training Workshop today before it’s too late!