AFI Today - Reflections of an Automotive F&I Finance Manager

F&I Menu Presentation

2011-09-08T15:50:00.000-07:00

Great menu presentation! I know this presentation was staged, but I love the way the guy came back in for the kill at the end.

This video is a good refresher for any F&I manager.

Next post: Objection handling: Pre-paid Maintenance

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Objection Handling: How to Handle the "I'll Think it Over Objection "

2011-09-05T10:53:00.000-07:00

Even though this is an F&I blog, the techniques in this close are VERY GOOD GUIDANCE for anyone selling cars for a living. Whether you are a rookie or a veteran, I highly recommend taking 9 minutes to go through this clip with Mark and re-apply these tried and proven sales tactics.

Maybe send the clip to your GM to show during a sales meeting...

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F&I Menu Presentation - Tough Buyer

2011-08-08T19:46:00.000-07:00

Watch Don Leon close down a tough payment buyer using an accelerated equity program.

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F&IQ Radio is Here

2011-04-30T08:39:00.000-07:00

Here is an idea whose time has come! LISTEN HERE

Radio host Loyd promotes the show:

"Each week with F&IQ Radio, I hope to bring F&I Managers something a different than word-tracks and typical F&I training materials.

As you know there hasn't been very much advancement in F&I Sales Training in the last 30 years (with the exception of the MENU system), and I hope to be able to bring some new ideas and concepts that will help you realize more success quickly.

Typically, each weekly episode will only last 10-15 minutes. So invest an hour a month to learn how to meet and exceed your dealership's revenue goals.

Please feel free to comment directly with me via e-mail: host@fandiq.com"

Listen to F&IQ Radio HERE

Next Post: Video: handling the "Best Rate" objection

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Is This Your Best Rate? video

2011-04-14T16:20:00.000-07:00

This video shows the most compliant way to answer the question: "Is that your best rate?"

Handling the "Best Rate" Question
Gerry Gould, Director of Training
United Development Systems, Inc.

http://www.fi-magazine.com/Content/Insider-Tip-of-the-Week1.aspx

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Objection Handling - PrePaid Maintenance

2010-11-26T16:15:00.000-08:00

Just a refresher on a prepaid maintenance close that pretty much always works:

Objection: I don't want my payment ANY higher!

Handled: I do appreciate that Mr/Mrs customer because I feel exactly the same way. By prepaying for required maintenance, you will never have to worry about adding oil and filter changes and other items into a tight budget.

The fantastic news is that for only $_____ more per month, you will be able to budget these expenses at today's guaranteed prices rather than taking a chance on how much they are going to go up next year - much less 2 (3, 4 or 5) years from now.

Objection: So I'm only prepaying for oil changes?

Handled: Prepaid maintenance is much more than just an oil change program. While your car is in for service, you will receive safety inspections to alert you of potential problems, tire rotation and air filter changes.

Most important, you'll have the peace of mind knowing that only factory-trained technicians are touching your car. They'll spot potential problems that most other mechanics are going to miss.

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US Fidelis and Attorneys Generals Reach Settlememt

2010-11-12T06:59:00.000-08:00

I'm following this story mainly out of my intense loathing for US Fidelis.

Pennsylvania Attorney General Tom Corbett has announced that he and 10 other states AG's have reached a settlement with US Fidelis. The St. Louis-based vehicle service contract provider was forced into bankruptcy in April after being charged with deceptive and misleading business practices.

Nils Frederickson, spokesman for the Pennsylvania Office of Attorney General, said that the case and the settlement represent a solid victory for car buyers and a cautionary tale for unscrupulous marketers.

“This case should serve as clear warning: There are lines you can’t cross,” Frederikson states, "The rules that are in play, if you look at it from our perspective, are to benefit everyone.”

At the heart of Corbett’s investigation were claims that US Fidelis repeatedly and systematically ignored federal Do-Not-Call rules, among other violations. (I personally added my cell phone number to their database as a "hot lead" in early 2008 - I got called at least six times)

The company had been under investigation since 2008, a year in which US Fidelis employed more than 1,000 workers and generated $246.5 million in revenue. .

There soon followed a flood of reports from customers to the Better Business Bureau, each accusing US Fidelis of either pressuring or misleading them into purchasing a service contract or failing to pay claims. The company became the subject of more than 33,000 inquiries and 1,100 complaints from all 50 states in a 36-month period.

Read the rest of the article HERE: http://ae-emagazine.com/auto-industry-news/us-fidelis-ags-reach-settlement/

The terms of the bankruptcy settlement will require the company’s owners, brothers Darain and Cory Atkinson, to surrender at least 90 percent of their assets. That includes a stake in 20 related corporations and $10.5 million dollars’ worth of personal property, including Darain Atkinson’s 40,000-square-foot Missouri mansion, a 50-foot yacht, and 35 other boats, cars and motorcycles.

Check out: "The bidding starts at 4.75 million for Atkinson mansion":

Serves 'em right!

Next Post: Toyota Dealer Bans the F&I Office ???

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Toyota Dealer bans the F&I Office???

2010-09-29T08:42:00.000-07:00

Well, I'm still not sold on this - but I have been hearing a lot about the concept of letting the salesperson complete the transaction from start to finish with a customer. This report is from a sales trainer who I respect - but in this case, don't agree with.

"For most dealers nationwide, a one-pricing sales strategy is a tough concept to accept. To even suggest that their sales staff should be given the authority to finalize every transaction at their desks and include the menu presentation without sending any customer into "the box" is heart-stopping for them. What about banning the F&I office altogether?

Well, one dealer I know is doing just that and very successfully. During these tough economic times, Colonial Toyota in Milford, CT, made a critical decision. The dealer chose to ban the F&I office and let his sales staff take charge of every transaction from beginning to end. He gave them all the title of "sales manager." I applaud Colonial Toyota for realizing that today's customers have changed and they needed to initiate their own changes to capture their business.

I was hired to train these sales managers in the proper and most effective presentation of menu presentation. I was skeptical at first, and then wholly impressed by this dealer's innovative "out of the box" thinking. The sales staff was enthusiastic and infused with optimism. The showroom is humming to a different beat of the drum and the excitement is palpable. Customers are buying and liking the upfront honesty projected by the staff.

Ironically, far too many dealerships still don't understand the necessity for transparent selling. They would rather stick to the status quo and continue to use outdated sales techniques. Their F&I managers tout their use of menu selling, but their process is seldom conducted with proper disclosures. They rarely review the base payment with customers for fear that any upfront disclosure will reduce their personal income. Although there are several great menu software providers on the market, the reality is that individual dealership menus are often changed to accommodate the missing base payment or itemization of cost. Dealers and F&I managers fear they cannot make a profit by being upfront with their customers. It's time to set fears aside.

One-price vehicle sales and the menu go together. Take Saturn, for example. Back in 1989-1990, when they first opened their doors with a brave new concept of "one-price" sales, the so-called experts in the industry said it wouldn't work. Customers wanted to haggle for the best deal. Customer wouldn't pay retail for a car without the bargaining process. Surprise! Customers did buy Saturns with the one-price offer and were happy to do it. The showrooms were packed with customers and the cars were hard to come by"

And look at what happened to Saturn by the way...

AFI's take on this:

I fully agree that the more transparent your sales techniques are - the more money you will make.

I also know that human nature will always take the path of "least resistance".

For example - if a salesperson badly needs his _x_th car to hit a bonus level - and it's the eve of the last day of the month - he or she will give ALL the gross of the car away, work the manager for maximum trade ACV, quote the customer payments at "buy rate" and sell ZERO F&I products.

Prove me wrong.

Some (most) people really can't be good F&I Managers, just like some F&I Managers can't be good Sales Managers. You really don't know until you give it a try.

Like our buddy Obama - imposing his "Grand Experiment" on our country.

I wish Colonial Toyota the best in their experiment and hope it works out.

My opinion is to still have the F&I Manager come out and greet the customers before them coming into the F&I office (building transparency).

F&I Manager: "Hello, congratulations on the purchase of your new vehicle.

My name is _______ and I am the business manager here at _______. My job is to take care of all the legal issues such as your title work and registration, as well as go over the mandatory disclosures related to your purchase.

The process will normally take about 20-25 minutes. To help expedite the process, I have a few questions to ask before I can prepare your paperwork. Can we sit and review those now?

This will lead into the interview. (a good topic for a future post).

Next topic: GAP Objection Handling

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Objection Handling: GAP Total Loss Protection

2010-09-18T18:01:00.000-07:00

Here are some good closes brought to us by Safeguard Products:

Objection: I have insurance already; I don't need more.

Response: I understand ... your insurance company is obligated to provide you funds that are equal to your actual cash value. However, they are not obligated to give you the amount equal to your payoff. If you owed $25,000 on your vehicle, you wouldn't accept a $20,000 settlement, would you?

Objection: I can't afford it.

Response: I understand ... but what would happen if your vehicle was deemed a total loss and you still owed $5,000 after the insurance company settled?

You would be forced to finance that $5,000 into your next car purchase - which would add an additional $100 to your monthly car payment, or you would have to come up with that $5,000 out of pocket.

Wouldn't it make more sense to pay $10 more per month right now for that coverage and peace of mind?

Objection: I have never had a car totaled before.

Response: I understand ... and you are lucky! However, let's say this does happen to you. When your car is totaled, your insurance company calls all the shots, and their goal is to settle as cheaply as possible, often using unfair techniques to determine the value of your car.

GAP protects you from the consequences of this unfair treatment by paying off your loan regardless of the valuation methods used by your insurance carrier.

Objection: I'll check with my insurance company about GAP.

Response: I understand ... however, it is important to note that some states do not allow you to purchase GAP from your insurance agent because there can be a conflict of interest.

Insurance companies often fail to total out vehicles that would otherwise be totaled, simply because the customer has GAP insurance through that carrier.

Rather than pay off your lender, the insurance companies may decide to pay to fix your car, although this may leave you with a greatly devalued vehicle that may be unsafe or uncomfortable to drive.

Objection: I have been with the same insurance company for years, and they will take care of everything.

Response: I understand, and it's great that you have a great relationship ... but did your agent ask you how much you were financing today?

I bet he didn't because whether you financed $5,000 or $50,000 on this car, your insurance company is only going to pay the Actual Cash Value of the vehicle if it's totaled.

You will be responsible for the payoff difference after your insurance company settles. With GAP protection, you are completely covered.

Best Practices

1. Ask Questions: Most customers know very little about GAP, and a simple explanation of what GAP covers in the event of a total loss will make financial sense to the customer.

What do you know about GAP?

In the event your car is totaled, where will you find the money to pay off your loan and insurance deductible?

2. 553 Contract Close (CA only):
Using a current 553 Law contract, point out Outstanding Loan Balance Settlement section.

Say to the Customer: This is a legal contract, and printed in RED is the statement that your insurance may not cover the outstanding loan balance.

Flip Contract Over and Say: You will notice that this has become such an issue that the notice is printed a second time.

You are required to initial this notice as recognition that you understand your insurance coverage may not pay off the balance you owe in the event of a total loss.

*This example refers to Settlement GAP.

Good stuff! - AFI

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What Does It Take for Me To Get $200 More per Car?

2010-06-04T10:28:00.000-07:00

From F&I Insight:

It's no secret that you can't continue to rely on just rate or Vehicle Service Contracts to bring in more money per vehicle. However, with pressure for even more profitability in F&I, how can you bring in $200 more per car?

Selling more ancillary products is the key to success. But, what seems like a no brainer requires a careful approach. The first step is to have five core F&I Products that you know can get you 20 percent or more penetration.

With the plethora of products and partners available out there, it may seem daunting to find the right mix. The thought of changing your line-up or or adding new products may seem like overkill right now. However, a customizable, comprehensive and competitive mix is what will bring in that extra $200 per vehicle.

Finally, you must deliver your menu presentations with confidence. When was the last time you participated in Menu Selling Training? Is your interview solid? Are you presenting the menu in the best way possible? And, what about objections?

With strong products, thorough customer knowledge and a solid, innovative partner, $200 more per car is definitely attainable.

Make 2009 your year! - AFI

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US Fidelis Collapse Sparks Service Contract Debate

2010-05-27T16:48:00.000-07:00

.
Remember those sickening comercials in 2009 with Rusty Wallace - smiling - "I would buy the extended warranty on all my family vehicles ONLY from US Fidelis".

It killed me too - as crappy a year in the F&I box that 2009 was - listening to customers compare the prices of my esc's with US Fidelis.

Anyway, check out a good article from Jim Henry: Automotive News

________________________________________________________________

The March bankruptcy filing for US Fidelis, the high-profile company that marketed extended service contracts directly to consumers, has rekindled debate over whether customers are best served by bypassing dealerships.

Customer-direct "is a growing business, to say the least," said, Marc Kamin, a spokesman for AA Auto Protection, of West Deptford, N.J., which markets extended service contracts online.

"Our position is a lot of people didn't know that a service like ours is available."

Saturation-coverage TV advertising for US Fidelis, including a NASCAR sponsorship, fixed that problem by raising awareness, Kamin said.

AA Auto Protection is a broker for the administrators that actually sell extended service contracts, Kamin said. He compared this to an independent insurance agent who offers policies from several companies.

"We're able to give the best prices directly because dealerships mark them up. We can sell them more cheaply," Kamin said.

He estimated that the average consumer could save 40 to 60 percent off the price of an identical service contract bought through a dealership, depending on how much the dealership marks it up. Kamin quoted a price of about $1,800 for "bumper-to-bumper" coverage for a couple of common used vehicles, a 2005 Toyota Camry or a 2005 Ford F-150 pickup.

Kamin said a broker such as AA Auto Protection also can offer service contracts for older used cars with higher mileage -- contracts that dealerships likely would not offer.

Apples to Apples

Larry Dorfman, CEO of EasyCare -- the trade name for Automobile Protection Corp., of Norcross, Ga. -- said in a separate interview that if you compare apples to apples, consumer-direct marketers are not necessarily cheaper.

"Most of these companies claim they are a lot cheaper than a dealer, and the fact is, if you price them for similar coverage, … they are more," he said. Dorfman was commenting in general, not specifically about AA Auto Protection.

EasyCare primarily offers service contracts through dealerships, but it also offers them directly to consumers through a call center, Dorfman said. He said his company first refers all customer-direct consumers to a dealer in EasyCare's network.

Dorfman said retail prices at dealerships, which are set by dealers, range from $1,500 to $1,800 for his company's best coverage, called TotalCare, for an average domestic or Asian vehicle. Contracts have a $100 deductible.Even EasyCare's own internal customer-direct call center would charge an average of $300 more for the same thing, he said. He estimated that competing call centers would charge about the same, maybe $100 more.

Dorfman said dealers and call-center service contract brokers both pay the same wholesale costs for service contracts. That means call centers are middlemen, just like dealerships.

He said a dealership has other profit centers, such as parts and service, which make money in the long run from a service contract customer.

But a call center has to charge more because it makes all its profit from service contracts.

"Over the years, a customer who purchases a [vehicle service contract] at the dealership has always been more likely to service there," Dorfman said.

Buyer (and seller) beware

Dorfman said the US Fidelis bankruptcy should serve as a warning for all service contract providers. No matter what the contractual obligations are, dissatisfied customers understandably blame whoever sold them the contract, Dorfman said.

"If the customer purchases from a dealer, there is brick and mortar to go back to," he said. "Claims and cancellations are a lot easier, and if a dealer is no longer in business, the vehicle service contract providers offered now at dealerships will step up and do what is right.

*** My Point exactly! - AFI

"On its Web site, US Fidelis, of Wentzville, Mo., tells customers seeking a refund that the service contract is between the customer and the third-party administrator, not Fidelis.

Those Bastards.

"US Fidelis has agreements with each of these administrators, and some of those agreements state that when a customer cancels, US Fidelis will reimburse the administrator for part of the amount refunded to the customer," the company says.

However, bankruptcy means US Fidelis may be unable to pay its part of such refunds, the company says.Without commenting on a particular company, Dave Robertson, executive director of the Association of Finance & Insurance Professionals, said extended service contracts sold through dealerships can offer some advantages.

As a general proposition, a cheaper service contract may make it harder to make a claim that qualifies for coverage, Robertson said.

He also said that buying an extended service contract on the Internet with a credit card could be more expensive than it appears, if the buyer doesn't pay it off right away.

"The cost of the coverage plus the cost of credit likely makes the plan more expensive than one purchased in a dealership," Robertson said. "If I was an F&I manager, I'd put some hard numbers to this and use it when pitching vehicle service contracts in the store."

Moral of this story: You always reap what you sow.

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You Need a Solid Partner When it Comes to Tire & Wheel Road Hazard Protection

2009-12-11T15:57:00.000-08:00

As Tire & Wheel Protection gains market share and program scope, it continues to be an evolving program for both third party administrators and underwriters.

However, due to recent developments in the industry, some providers may be leaving the Tire & Wheel business.

Others may not be offering a fully-compliant product.

You may have noticed changes from your providers and their insurers lately.

While this isn't a surprise due to today's challenging market, it makes it obvious who you want to partner with in the long run.

Where price in the short term used to be the key decision maker, sustainable relationships and coverage for your customers should be at the forefront of any decision process now.

Make sure that your Tire & Wheel partner and all of your F&I providers can provide the service and comprehensive coverage you expect for the long run.

Make sure your F&I provider:

* Offers free training for both agents and dealer personnel.

* Has solid relationships with A-rated insurers.

* Puts claims customer satisfaction first.

* Facilitates immediate credit card claim payments.

* Manages fully compliant programs.

* Offers the most comprehensive product on the market, not just a cheaper product that result in more exclusions (and less satisfaction).

Send an email to AutoFinanceInsider@yahoo.com with Tire/Wheel Info as the heading and I will send you information on the BEST tire @ wheel program in the industry. It's the one I use and recommend.

AFI

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5 Ways To Kill Your Credit Scores

2009-11-24T09:40:00.001-08:00

Here is some good information by Liz Pulliam Weston

One of the questions I'm asked most often about credit scores is exactly how much certain actions affect people's scores.

What good is a good credit score?

Until now, the best I could do was say, "It depends." That's because the company that created the leading credit score, the FICO, has been wary about releasing specifics.

Fortunately, that just changed. At my request and for the first time, the company (also known as FICO) has released details about how specific actions, from maxing out a credit card to filing for bankruptcy, can affect people with different credit scores.

I asked the company to compute the results of those actions for two examples: a person with a 780 score, which is an excellent score on the 300-to-850 FICO scale, and someone with a 680 score. The results:

Effect on a 680 score Effect on a 780 score

Maxed-out card
-10 to -30
-25 to -45

30-day late payment
-60 to -80
-90 to -110

Debt settlement
-45 to -65
-105 to -125

Foreclosure
-85 to -105
-140 to -160

Bankruptcy
-130 to -150
-220 to -240

Source: FICO

The results are given in a range because FICO is still a little nervous about revealing too much about its proprietary scoring. But the range is fairly tight, and we can clearly see the disparate impacts of the different actions.

A Guide, Not a Guarantee.

Before we go further, I have to make this clear: Your mileage may vary.

People with the same credit score can have very different credit profiles: more or fewer accounts, a different mix of accounts, a longer or shorter credit history, use of more or less of their available credit, etc.

Because of those differences, the same action -- maxing out a card, say -- can have different effects on people with the same score, depending on the details of their individual credit profiles.

For the sake of this exercise, FICO assumed both people had several active major credit cards as well as a mortgage, a car loan and student loans.

The person with the 780 score:

Has at least 10 credit accounts in total and a 15-year credit history.
Uses 15% to 25% of her credit card limits.
Has no late payments on her credit reports.
Has no collection accounts or other major negatives.
The person with the 680 score:

Has six credit accounts and an eight-year credit history.
Uses 40% to 50% of her credit card limits.
Was 90 days late on an account two years ago.
Was 30 days late on another account one year ago.

Here's what you need to know about each action and the effect it had:

1. Maxing out a credit card

Using 100% of your limit on any credit card puts you at risk of over-limit fees. It also takes a bite out of your credit score.

Our person with the 680 score might lose 10 to 30 points from this one action, while the 780 scorer could shed 25 to 45 points.

The difference points up an important fact: The higher your score, the more points you tend to lose from "bad" actions. That's because the scoring formula is sensitive to any sign you're getting in over your head. Maxing out a credit card is considered one of those signs.

You also should know that it typically doesn't matter to the formula if you carry a balance or pay off that maxed-out card as soon as you get your statement. What's usually reported to the credit bureaus is the balance on your last statement. Even if you pay the debt in full before the due date, the maxed-out card will hurt your score.

2. Skipping a payment

Mailing a payment a few days late normally won't hurt your score, although you may incur late fees and trigger higher interest rates. The big hurt comes when you miss a payment cycle entirely.

A 30-day-late report would shave 60 to 80 points from our lower-scoring person and 90 to 110 points from our higher scorer. In other words, one lapse of attention could plunge the 680-scorer into subprime credit territory, and our 780-scorer could find credit much harder to get and more expensive.

This is why it's so important to set up automatic payments to ensure your bills get paid on time, all the time. With credit cards, you can set up automatic payments that take the minimum payment out of your checking account to ward against a late payment. You can always make a second payment that reduces your debt or pays it off entirely. You can sign up for automatic payments on the Web site of your card issuer.

3. Settling a credit card debt

All the advertisements about "settling your debt for pennies on the dollar" make debt settlement sound like a great solution. But failing to pay what you owe a creditor will take a serious toll on your score.

The 680 scorer would lose 45 to 65 points with this maneuver, while the 780 scorer would shed 105 to 125 points.

Our scenario assumed that our borrowers would miss one payment before settling the debt with their credit card companies. In reality, debt settlement negotiations can drag on much longer, with each missed payment taking another chunk out of your score.

Settling a debt with a collection agency would hurt less, probably much less, because the FICO formula is set up to weigh more heavily what the original creditor says about you than what a collection agency reports. But if our borrowers were settling with a collection agency instead, their scores would be lower to begin with, because they would have collection accounts on their records.

Also, you should know that the amount of debt your creditor "forgives" in a debt settlement solution is typically added to your taxable income. So you may save some money by settling a debt, but you'll give some of it back to Uncle Sam in higher taxes.

4. Losing a property to foreclosure

Foreclosure deals a severe blow to your credit score: 85 to 105 points for our person with the 680 score and 140 to 160 points for the one with the 780 score.

Foreclosures have implications for your future ability to get a mortgage as well. Although your score may start to improve as soon as the house is gone, mortgage lenders may not be willing to extend you another home loan until two to four years have elapsed.

In an attempt to protect their credit, many people attempt short sales, selling their houses for less than what's owed, with the lenders' permission. Unfortunately, these transactions, even if successful, are often reported as settlements. And a settlement, as you've seen, is pretty bad for credit scores.

To lenders, a short sale isn’t quite as bad as a foreclosure, though, and it may be easier to get another mortgage once you’ve rebuilt your credit.

5. Filing for bankruptcy

FICO spokesman Craig Watts once called bankruptcy the nuclear bomb of credit actions. Filing for bankruptcy would shave 130 to 150 points from the 680 score and 220 to 240 points from the 780 score.

This is different from the other black marks, where the higher scorer was still left with better numbers than the lower scorer. In this case, both would wind up near the bottom of the credit barrel. Getting new credit, particularly in the current credit-crunch environment, would be extremely tough.

Sometimes, of course, bankruptcy is the best of bad options. (See "Quiz: Should you file for bankruptcy?") But if you can't pay your bills, you should at least explore the other possibilities: forbearance, credit counseling or even debt settlement.

Finally, if you have any of these five black marks on your record, remember two things: The impact on your score may differ from what's shown above, and regardless of how many points you lost, you can rebuild your FICO score over time.

You can buy your Equifax or TransUnion FICO score from MyFICO.com. (Experian no longer sells FICO scores to consumers, although it continues to sell the scores to lenders.) With paid scores, you'll get specific advice about how to improve your numbers.

myFICO May Sale - Save 20% on FICO scores & credit reports

In general, when you're trying to build a credit score, you should:

1. Pay your bills on time, all the time.

2. Reduce your credit utilization; below 30% is good, below 10% is better.

3. Have a mix of credit on your reports, including installment loans (mortgages, auto loans and personal loans) and revolving accounts (credit cards and lines of credit).

4. Refrain from closing accounts.

5. Apply for new credit sparingly.

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Guide to Handling Objections: Identity Theft Protection

2009-09-14T08:34:00.000-07:00

Objection: I monitor my credit reports on my own. I don't need it.

Response: Seventy-one percent of fraud happens within a week of the theft of your personal data.

How often do you monitor your credit reports?

For a small increase in your monthly payment, wouldn't you want the peace of mind that Identity Theft Protection provides?

Objection: If this would happen to me, I could fix it on my own.

Response: Did you know that most victims of identity theft lose thousands of dollars and lost wages, not to mention legal fees, trying to deal with their cases? It's awful.

You can spend months trying to repair the financial damage caused by identity theft.

It's not easy to remove the negative information from your credit reports.

Doing it on your own is very time consuming and will make you angry, irritated and depressed.

With Identity Theft Protection, you are assigned a personal recovery representative to manage your identity theft recovery and follow up for a year.

Objection: Identity theft happens to people who shop online. I never shop online, and I am very protective of my Internet passwords.

Response: According to identity theft experts, the Javelin Strategy & Research Center, low-tech methods for stealing personal information are still the most popular method of identity theft.

Stolen wallets and physical documents accounted for 43 percent of all identity theft last year, while online theft only accounted for 11 percent.

This program I am offering to you protects you from ALL TYPES of identity theft.

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Sometimes we are our own worst enemy - 2

2009-08-31T10:39:00.000-07:00

by Gil Van Over

This week’s news flash was not published in the conventional news media, rather in one of the online forums I periodically lurk on.

The poster, a finance manager, was extremely upset over a scenario at his dealership that day. The conflict was with a sales manager and the topic was whether to deliver a potential straw purchase.

The finance manager was adamant that the deal not go through while the sales manager was just as adamant that the car started moving down the road. The General Manager’s response? Defer.

This scenario could just as easily been the finance manager holding up a deal because of other potential bank fraud, such as power booking, credit application fraud or manufactured stipulations.

The sales manager kept pushing the “we’re all here to sell cars” theorem while the finance manager valiantly resisted with the “I ain’t doing the perp walk for anyone” argument.

In the end, the General Manager did not take a position, but rather deferred to the dealer’s attorney.

What should he have done?

I am not an attorney, but do occasionally get these type of phone calls, asking my opinion.

With the assumption that the information relayed by the poster was the complete story, my recommendation would have been to let the lender know the complete story and if the lender decides to buy the deal, document the decision and move forward (if the lender knows about the transaction, it is not technically a straw).

Otherwise, do not sell the car to a straw purchaser.

Sometimes we all need to just get back to the basics - AFI

Gil Van Over is the President and founder of gvo3 & Associates, a nationally recognized F&I, Sales and Red Flag Rule compliance consulting and training firm (www.gvo3.com).

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F&I Training Cash Conversion Video

2009-08-27T10:41:00.000-07:00

Here is a good technique for cash conversions that is worth a look - but someone please tell this guy to throw away that chair!!!

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Cash For Clunkers

2009-08-14T08:21:00.000-07:00

by Troy Spring

With all the "Cash For Clunkers" madness going on, (I have not talked to one manager who wasn't at least a little frustrated with all the paperwork and effort it takes to do a deal.) I thought it was especially a good time to talk about this subject.

The major reason is how much a mistake cost the Dealership and Owners in time and cash flow. If a mistake is made and you have re-submit at the "end of the line" and it the cash flow losses will add up quick. With the additional hours it takes to make a deal, the additional mental fortitude it takes to cross all the T's and dot all the I's for this program it is easy to get frustrated and disenchanted.

Many managers with that aggressive A type personality which makes them great at the job of selling and delivering cars on a daily basis are finding that channeling the B type personality and the anal retentive side of the brain is hard work, I know I would would be one of them if I was to sit in that seat. So it is without any reservation I say that this could cost people their jobs making mistakes and not getting funded by the government on deals that were contracted and spotted with $4500 on the line.

So slow the process way down, Ask for help, have someone double check the work before you click submit, make sure you take a little time to yourself and get refreshed (maybe take your day off) and not getting to overloaded and "fried". Notice: Fried and Fired use the same letters!!!!! If you are "Fried", you (or your managers) will make mistakes, a lot of them. This will only lead to you becoming more fried, and lead to getting fired because of all the meetings, efforts, yelling, etc it will take to clean up the mistakes while trying to conduct new business. It will be a vicious cycle that will not end for a lonnnggggg time.

Have a plan to do it right the first time and you will find you have a boat load of more time on your hands. With that extra time you will find you will sell more cars, deliver more cars and be much happier.

Thoughts from the author:

I agree it isn't rocket science but it was written from the heart ( after hearing some of my dealers frustrations) and thought it if it helps one dealer have less cash flow issues because he is waiting on $200k from the government for a month longer than he needs to, one guy to not lose his job over it, one manager to say, hmmmm good thinking from an outsiders point of view (in the heat of battle you can't always see every angle) than I will be one happy guy for the risks I took writing this. Troy Spring

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F&I Objection Handling: Roadside Assistance with Tire and Wheel Road hazard Protection

2009-06-11T17:13:00.000-07:00

Objection: I have roadside assistance with AAA.

Response: Excellent. Obviously you already see the benefits of roadside assistance.

"Which AAA coverage plan do you have? AAA standard @ $64* per year? Or, AAA Plus @ $97* per year?"

"With AAA, you’ll be paying approximately $500* over 5 years, and you still won’t have protection from roadside hazards. For only $_____ per month you can have both the Roadside Assistance and Tire & Wheel Road Hazard Protection. Your tires are the only parts of your vehicle that touch the ground, and tire and wheel repairs are the most expensive repairs you will have that are not covered by the manufacturer’s warranty."

Best Practices:

1. Know your product! Many manufacturers do not provide towing unless the breakdown is due to failure of a covered part. Towing is only available if the vehicle is still under factory warranty. How much factory bumper - to - bumper is still left on the vehicle?

2. Present your customer with a copy of owner’s manual detailing what’s covered by factory roadside assistance and present it as an “upgrade” to limited factory coverage.

3. Sell it as a combo. It is the Roadside Assistance and Tire & Wheel Road Hazard Protection Plan. Point out that the factory offers NO coverage for roadside hazards.

4. Stay current on AAA Membership Benefits and rates. For example, in the South, AAA’s Membership Benefits Chart can be found online at www.aaasouth.com/membership.asp.*

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

*** If anyone would like to offer this fantastic product in the F&I office, I am also the acting rep! Call 1-800-671-1454 or send an email to autofinanceinsider@yahoo.com. The incentive / rewards program for the F&I managers will blow your mind. LET"S TALK! --- AFI

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Check out Tire and Wheel objection handling on this You-Tube Video:

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Handling F&I Objections: Combination Products

2009-05-03T13:00:00.000-07:00

Tire & Wheel, PDR and Windshield

Objection: I don’t want to raise my payments anymore

Response: I understand … what you are saying is that you are on a budget and staying within it is important, correct?

Customer: Yes, that is correct.

Response: You will notice that with this protection, your payment is $548 per month and without it is $529 per month. So, for only $19 per month, you are budgeting for any future expenses and the peace of mind that goes along with that. Wouldn’t you agree that the $548 payment makes more sense for your long term budget?

Objection: I already have insurance.

Response: I understand … Unfortunately, many of the perils that UVP protects you from will cost less than your deductible. Not to mention the fact that your insurance company will not replace or repair a rim or tire damaged by a road hazard. With UVP, you are protecting yourself from the three most common perils of owning an automobile. With this protection, you are buying not only peace of mind but convenience as well. Would you prefer the 3 year, or would you like to upgrade to the 5 year?

Objection: I just don't think I need it.

Response: I understand. Earlier you told me that you plan to trade this vehicle in 3 years like you have with your previous vehicles. Many factors go into the value of a trade-in such as: mileage, color, tire wear and body condition. The UVP coverage can easily increase the value of your trade because it’s going to cover the three most common perils of automobile ownership, and they will have been taken care of prior to trading your vehicle. Do you want to take advantage of the 3 year option or upgrade to the 5 just in case you keep this one a little longer then the last?

Objection: I can afford to pay for these items as they happen.

Response: I understand … and it is nice to know you have that to fall back on. But, if you don’t mind, could I ask you a question?

Customer: Sure.

Response: Why would you want to spend your time and energy on something you probably don’t really have time for? (Short pause)

With UVP, repairs can be made on your schedule and at the locations that allow better utilization of your time. UVP covers the three most common perils of owning an automobile and it’s not going to be a question of if they happen but when. Let me simplify your life today with the UVP program for only $19 a month or a single payment of ______.

PRINT THIS FOR YOUR RECORDS:

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Handling F&I Objections: Paintless Dent Repair

2009-05-03T10:02:00.000-07:00

Objection: My insurance will cover it.

Response: I understand … unfortunately, the cost of most body panel repairs are less than your deductible. This program covers those common and frustrating dents and dings that are unsightly and although expensive to repair, would usually cost less than your deductible.

Would you prefer the three-year, or would you like to upgrade to the five-year?

Objection: I don't think it's important.

Response: Do you remember how you felt when you discovered the first scratch or dent on a previous new car? As you were first getting out of your car, intuition probably told you that the person in the parking space next to you was going to open his car door into yours.

Seeing the ding probably drove you crazy.

Right now your new vehicle is perfect, but inevitably, normal wear and tear, not to mention the itiots in parking lots, will cause numerous dings and dents on your brand new car. With the Dent & Ding Protection, you can keep your car looking new for much longer and eliminate lots of frustration.

Objection: I just don't think I need it.

Response: Earlier, you told me that you plan to trade this vehicle in three years like you have with your previous vehicles. Many factors go into the value of a trade-in such as mileage, color, tire wear and body shape.

This coverage can easily increase the value of your trade because the dent and dings will have been taken care of prior to trading your vehicle.

PRINT THIS FOR YOUR RECORDS:

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Tags: Automotive Finance F&I Finance & Insurance
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Handling F&I Objections: Key / Remote Replacement Plan

2009-04-10T15:48:00.000-07:00

Objection: That seems expensive.

Response: The plan basically costs $49 per year (six-year finance) or $59 per year (five-year finance). People pay that for AAA for peace of mind, and AAA doesn’t cover the one loss you are most likely to have with your car. This way, you have a roadside plan that can save you a lot of time and money. Doesn't that make sense?

Objection: (For Leases) That seems expensive.

Response: Did you know that the most likely charge you would get at the end of your lease is a charge for around $375 to replace a key? Most people only turn in one key at the end of their lease. Let’s face it, a lot can happen in three years, and they usually misplace the spare. Isn't an extra $6.00 a month a good value?

Objection: I never lose my keys. I don’t think I need that.

Response: I’m sure you’ve misplaced them before and had to search the house, your office or your bag for them, right? Most people do that hundreds of times. Did you know that our parts department cuts more than 150 keys per month?

Just imagine the added stress knowing that it could cost you up to $700 for the key replacement, tow and rental. I really think you should go with it.

Objection: I wanted to keep the payment at what I was quoted.

Response: No problem at all. You must have your budget well planned. The $279 is what you pay for the car. Our Key Replacement Plan prevents the car from costing you more down the road. What if you experienced, say a $500 loss from losing your keys? Take that $500 for one year and divide it by 12 – that’s more than $40 per month added to your payment. Now you are at $319 per month for that year. Adding the Key Replacement Plan only brings your payment to $289. Does that make sense? What if I can work with you a little to allow you to get the plan and still keep your payment at $285? Would you go with that?

Opportunity: I don’t need it, but my wife, daughter or son could use key replacement. He/she always loses her keys.

Response: Great, we can offer the program to any family member. We just need to fill in his/her information. We can give him/her a set of key tags now. You get the new car, and he/she walks away with something for his/herself. The best news is that you can pay for it for him/her.

Opportunity: Key Replacement Plan has a high-perceived value and low cost making it perfect as a closing tool for other products.

EXAMPLE 1

F&I Manager: You like the parts and labor agreement I mentioned to you right? It covers the car, bumper to bumper, for 6 years and 100,000 miles?

Customer: Yes

F&I Manager: What if I was able to include the Key protection in the cost, and your payment was only $279 – would you go with that? (Ex - Add another month to the term).

EXAMPLE 2

F&I Manager: Of the products I mentioned, which ones interest you the most?

Customer: Appearance Protection, the LoJack, the GAP, etc.

F&I Manager: What if I was able to give you the Key Replacement and the pro-pack (or the GAP), and keep your payment at $289? (Slightly reduce product prices and/or increase loan term).

PRINT THIS FOR YOUR RECORDS:

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Automotive Finance Department Video on Menu Presentation

2009-03-20T16:14:00.000-07:00

Here is a fantastic F&I menu presentation (other than his cell phone ringing in the middle of it) by a guy named Jim Brink. I found it on YouTube during a brutally slow bell to bell.

The objection handling by this guy is excellent! Check it out.

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The TOP TEN STUPID Things Said To a Lender When Re-hashing a Deal

2009-03-18T11:52:00.000-07:00

Posted by Marla Belson on Selling Iron

The Parody continues……

10) After he moved they never forwarded his payment statements so he didn’t know where to send it or when it was due.... Really!

9) He went through a really bad divorce; she ran up alllll his credit cards and left him.
That @#(&%^*!!!!!

8) What, you see bad checks???? I didn’t catch that on my TU..... We must pull different credit reports.... Hmmm...... So, what is the rate????

7) Hey what are a few repos and bad checks amongst friends.... So, what is the rate???

6) Oh really I didn't know what that meant....so a tax lien for $10,000 isn't that good I suppose. So anyway, what’s the rate????

5) This guy has so much money down you should hope he goes bad, you will MAKE MONEY!

4) I have it approved everywhere as-is, I just need you to make an exception because I really want you to have it.

3) (The always friendly) Buy/fund this deal or you will never see another contract from me. I know a lot of people in this business I'll tell everyone your company $#%Q.

2) Well....can you waive POI... I can't prove it.

AND THE NUMBER ONE LINE STUPID LINE DELIVERED DURING A REHASH SESSION IS….

1) The infamous.....I really need a favor on this ONE deal. He's a friend of the owner. We aren't making ANY money on this ONE. No, I mean really we aren’t!!!!!

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The TOP TEN Things That Crack-Up a Special Finance Manager During a Credit Interview with a Customer.

2009-03-18T11:43:00.000-07:00

Posted by Marla Belson on Selling Iron

The TOP TEN things that crack up a Special Finance Manager during a credit interview with a customer.

10) I didn’t know where to send my payments after I moved.

9) My ex-wife/husband ran up all my credit cards before we got divorced.
That @#$%^#^&!!!!!!

8) What, all those checks really bounced?

7) I didn’t know all those charged off phone companies where on my credit, I don’t know
anything about it! But I do have a “pay as you go” phone now!!!

6) That car was a lemon it needed too much work so I gave it back.

5) If I gave the car back and I drove it to them, that isn’t really a repo, is it?????

4) Hey, what are two or three repos and a few bad checks amongst friends???
So, what is my interest rate?

3) I never saw those charge offs before, they can not be mine?

2) “Hey, it isn’t my fault!!!!!”

AND THE #1 STATEMENT MADE……..

1) I am not going to pay for something I do not like!!!!

Ok, but everything you liked in the past, never got “paid for” either?????

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Day In The Life Of a Car Salesman

2009-03-05T13:57:00.001-08:00

Author unknown. This was forwarded to me in an email. Post a comment if anyone knows the author.

So you want to be a Car Salesman!

6:00 Alarm goes off.

6:00 Hit Snooze on Alarm.

6:15 Hit Snooze on Alarm.

6:30 Hit Snooze on Alarm.

6:45 Wife punched me in back yelling "You are going to be late for work."

6:55 Stagger to bathroom to shower and shave.

7:00 All the sales Guru's tell you to look yourself in the mirror and say, "I am GREAT!" "I am the BEST!" Maybe tomorrow I can do it without laughing.

7:30 Can't be late for work again, put shirt in dryer instead of ironing.

8:00 Leave for work to get there early, they tell me I will sell more cars if I am early.

8:10 Return home to get cell phone.

8:30 Leave for work again after stalling for another 20 minutes.

9:10 Walk into sales meeting 10 minutes late, Sales Manager makes an example out of me. Tells new Sales Reps that early birds always get the worm, bla, bla, bla. I got a worm for ya is what I wanted to say. He must have had knee pads on during his interview to get a Managers Job!

10:30 Finally get out of meeting after hearing the same story, "When I was selling cars...." When you was selling cars, you could get a homeless person approved for a loan.

11:00 Walk almost a mile around the car lot trying to shake off another negative meeting.

11:30 Finally have time to get a cup of coffee, this will surely make me feel better.

11:45 Sit coffee down outside to catch a customer--Reach to shake hands--customer says "I am not buying anything, I am picking someone up from your service Department." Ok, Ok, I guess you can do that dude!

11:50 Coffee should be cooled enough to drink-Forget about rude old man-Wow, coffee has a cigarette butt floating in it!

12:00 Go to lunch to keep from strangling someone.

1:00 Get back to work--Your cousin is talking to another salesman. (in car sales if a customer does not ask for you, it is not your customer.) Cousin sees you and says "I didn't know this was the dealership you worked at."

1:30 Salesman sales car to your cousin. Wow, I will never live this down, but try to lessen the impact by saying "it was a distant cousin," I have not seen them in years!

2:00 Catch cousin alone and tell them "Give me my house key, you are going to have to find you another place to live!"

2:30 Finally catch a customer that seems very interested in a GMC Yukon. After the test drive, the customer says, "My company is buying the vehicle for me and they usually get it directly from the factory, I just wanted to make sure I liked it."

3:30 Catch another customer that is very interested in a used car, test drive, write up, appraise trade, present numbers....Customer says, "I just got hired at XYZ Motors and they told me to mystery shop to see how the process goes. Thanks for your time." OH, not today! You may want to call XYZ Motors to come and get you because Its a MYSTERY as to where your trade in keys are!

4:00 Get paged to back lot (Customer Waiting) which is not uncommon, but it is about 1/2 mile walk and golf carts are nowhere to be found so take off walking. See Salesman hiding behind cars laughing because they made up the fake page!

4:30 Call doctor and ask him symptoms of high blood pressure!

5:00 All Sales Personnel are needed on showroom floor. Sales Manager says, "We are going to have a lot party." Great finally something fun for today! I find out a lot party is where you rearrange all cars on the lot. You have got to be kidding!

5:30 to 9:00 work with customer on a new GMC Acadia--had trouble closing the deal and had to split with another salesman to close the deal. I was supposed to get off at 8:00, but at least I sold one. The other salesman tells me, "Your part of the commission is $50 dollars!

9:30 Go to Wal-Mart pharmacy to use their blood pressure machine

9:45 See your cousin that purchased a car from your dealership. Told him the car he bought had been wrecked! Maybe his blood pressure will be as high as mine.

The next time you go to your local dealership and it seems if all the salesman are not in the best of moods, realize customers do come first, but it could have been a rough day!

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