Pub. 18 2019-2020 Issue 2

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 . 3 , 2 0 1 9 12 new jersey auto retailer There’s a common misconception among sales and F&I personnel that regulatory compliance – following the rules – limits the amount of revenue generated from vehicle sales and F&I transactions. A wealth of evidence proves the opposite is true. A rule-savvy salesperson typically posts a higher gross. A regulation-con- scious F&I practitioner usually generates a higher IPRU, lower short-term chargebacks and fewer product-related customer PR payments. The adage, “Knowledge is power,” holds true in the dealership, based on two significant measures – dollars generated and dollars that make it to the bottom line. The qualifying caveat, however, is that knowledge of the rules is equitably applied to all parties to the transaction. The adage doesn’t just apply to knowledge of the rules, whether federal and state regulations or dealership policy. It extends to having a working knowledge of the specifications and performance standards of the vehicles offered for sale. And the established standards for properly populating a cred- it application. When the salesperson can recite a vehicle’s features and pro- vide succinct and accurate answers to questions posed by the customer, it dramatically reduces the time required to find a suitable vehicle – a positive factor in closing the sale. It also Compliance Closes Sales and Keeps Regulators at Bay BY LINDA ROBERTSON