Pub. 18 2019-2020 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 2 , 2 0 1 9 10 new jersey auto retailer Eliminating Objections BY KEN CARLSON Many F&I Professionals are looking for that “new, state of the art, miracle” objection handling idea to help them sell more products. For now, forget about Ob- jection Handling, let’s talk about OBJEC- TION ELIMINATION! I see it all too often – F&I Managers rush through the menu, breeze through the product descriptions and then prepare to defend and upsell the various products through a series of objection handling ideas. The old mantra that “the selling starts when the customer says no” has gone the way of the dinosaur. No wonder the customer feels “worn out.” This antiquated process is ineffective, produces fewer sales, and the customer’s irritation rises with every new product mentioned. In reality, the real selling starts with “Hello.” It is imperative that employees convince the customer they can be trusted before ANY selling commences. Let’s take a more consultative approach to the world of Finance and Insurance. Customers are much more prepared to make a positive decision on products when they are well informed as to why they need those products. It all starts with a good interview on the sales floor. Once the dealership employee explains their role, the customer’s guard goes down and their trust index rises. Once the customer is in the F&I office ( and before presenting a menu ), a thorough review of all the factory warranties must be completed. Resistance usually occurs when there is a lack of understanding. So, let’s make certain the customer truly un- derstands what they are getting from the factory – not just the mechanical warran- ties but ALL of them. If your dealership or the factory provides complementary maintenance, inform the customer of those benefits: Paint Warranty: Limited to defects in parts/materials and workmanship only. A bad batch of paint or not applied properly would be considered a defect. Explain what is NOT covered, such as environmental fallout, bird droppings, tree sap etc. Tire Warranty: The warranty provided by the tire manufacturer is limited to defects in parts and workmanship ONLY . If the glue didn’t hold up or the tire was not assembled properly, that would be an example of a defect. This is a pro-rated warranty. Explain what is NOT covered, such as damage caused by pot holes, road debris or curbs. Power Train Warranty: Months and mile- age limitations. This warranty only covers the internally lubricated parts of the engine, transmission and drive axle. Limited to defects in parts and workmanship only. Provide examples of what is NOT covered. Comprehensive Warranty: Months and mileage limitations. Again, limited to defects in parts and workmanship only. Provide examples of what is NOT covered. Based on the customers driving habits, when will they be out of their Comprehensive and other warranties? The above is good information for the customer to know prior to seeing what pro- tections your other F&I products can offer them. Let them know that vehicles today have an average of 30 computer modules that operate various components of their vehicle. What is the cost of replacing these parts? By conducting a thoroughWarranty Review you create a need for the various products you will be presenting to your customer. Once your customer knows what they are getting from the factory, and the correspond- ing limitations, they are more likely to see the benefits of your products. Take your time explaining the value of the options ( including the cost of repairs ). Follow these best practices and you are well on your way to eliminating possible objections. The easiest objection to handle is the one you never receive! Ken Carlson is Divisional Business Develop- ment Manager at F&I Resources. He can be reached at 508.624.4344 or via email at kcarlson@firesources.com .