Stump the Pro Featuring Tony Dee O bjections as an Ethical F&I Manager can present its challenges and this one will take all your professionalism not to laugh when the customer say’s “I am going to do what Dave Ramsey says, put money in a cookie jar every month for auto repairs”. The natural response is for us to “understand”. As in, “OK Mr. Customer, I understand”. Take a cue: Stop “understanding” objections in the business office. When it comes to F&I products, you never want to “understand” them. When you understand, you are agreeing with the customer. This will lead you to the objection vortex. Instead “appreciate” the customer’s point of view. When you appreciate their point, it allows you to present your point without agreeing with them. “I can appreciate where you are coming from Mr. Customer, so let’s do the math”. Use the monthly cost of a VSC as your basis. Noting that most people drive 1500 miles a month or 18000 miles a year, the base factory warranty of most new vehicles will expire in 2 years. This is a critical point to make when working with the cookie jar customer. “The VSC changes your payment $45 a month, so let us use that number. In the first year, you will have $540. End of the second year, you will have $1080 less the maintenance”. This segues into the added cost of ownership that Pre-Paid Maintenance can solve. “The average repair order stands at $1200-1500, and when does the vehicle usually have a problem, during the warranty period or right after it expires? Let us say, you make it another six months before something breaks and you have $1350 in the cookie jar. Not counting the tow bill and rental car, you’ve barely covered the repair”. “It’s virtually impossible to maintain your budget and put enough in the cookie jar for the next repair not to mention maintenance. So instead of creating a variable budget that may create problems for you, wouldn’t it make sense to enroll with the VSC for the $45 a month and ensure that your vehicle is always fixed, with factory OEM parts?” Nod yes. “The average repair order stands at $1200-1500, and when does the vehicle usually have a problem, during the warranty period or right after it expires? Let us say, you make it another six months before something breaks and you have $1350 in the cookie jar. Not counting the tow bill and rental car, you’ve barely covered the repair” “We’re good on the road hazard because our tire guy gives it to us free when we buy from him so we’ll pass”. This objection is better handled with product knowledge instead of technique. If you are not familiar with what tire shops are offering, stop by one and ask for the info and have it on demand next time you hear this objection. We see three primary types of road hazard policies available from tire stores: *A Purchased Policy that is only good at the originating store location making claims inconvenient. This policy is often pro-rated so, the customer will have some out of the pocket expense. There is a time limit of no more than three years on most and cannot be renewed. Do the math on this one with a customer. $250 for a tire, plus $40 for the road hazard, you now own it for $290. The tire is damaged and not reparable. 50% pro-rated so you pay $125 plus another $40 for road hazard. You are into the second tire for $165, plus tax. OK, $165 is better than $290, but was the rim damaged? Was there a towing expense? Did you have to personally change your tire in the rain? *A Purchased Certificate for repair, refund, or replacement. This is a new program we have seen in the industry. Let us start with the cost, 17% of the price of the tire. There are several caveats to claim a three-year term limit, cannot be renewed, must return to the same store, only the tire the certificate was purchased on is covered and equal tread depth across the tire. Equal tread depth across the tire, is this even possible? However, it is not a pro-rated program, same as our policies. But once again, was the rim damaged, and what about the towing expense? *The “Free” Two-Year protection. This is a reimbursement back to the customer, although mounting, balancing, wheel weights, shop supplies, disposal fees, or taxes are covered. This program does have some nice benefits such as not being pro-rated and does have a full road-side assistance benefit. What about the rim and the upfront out of pocket expense? It is essential you know what is not covered and what is not so, READ it. Take special notice below, of the word, “when” instead of using “if”. That is an EFI PRO Tip! “You are correct, it is a bit more expensive than the tire shop, however, this policy covers much more than your tire. It covers that $300-1000 wheel when you hit a curb which includes scratches. It covers all your tires for the next 5-7 years, is never pro-rated, and includes full roadside assistance. So, for the extra few dollars, wouldn’t it make sense to have this for your family's safety and your new car looking good maximizing its value”? And once again, a little yes nod. Tony Dupaquier leads the eight certified training & development specialists at The Academy. With more than 30 years in the industry, he has held nearly every position in variable operations, from salesperson to general manager, and is a former Nissan National Walk-Around Champion. Tony has been a featured workshop presenter at the NADA Convention for a number of years, addressed international dealer groups on F&I and sales techniques, and spoken at numerous 20 Groups and dealer associations. He also contributes F&I articles to many industry publications. As director of The Academy, Tony is responsible for its curriculum, marketing, and overall growth and direction. 4
5 Publizr Home