Wednesday, August 20, 2008
Finance Conversion Tips
OK, so you’ve read the headline story, but how to put that into practice?
First off, if you have any doubts, fears or concerns about asking customers how they are going to fund their car purchase, then you have a problem. To get over this hurdle, remember that after a house purchase, this is typically the second biggest, and some would argue most emotive financial transaction that your customer will undertake, and the customer needs to have confidence in your ability to help them.
If your customer was buying a house, the first sensible question they will be asked is “have you got the money?” The question is the same for all other substantial purchases, caravan, motorhome, boat, briefcase full of illegal substances ( so I am led to believe anyway…).
So, short of doing a Jerry Maguire and shouting “Show me the money” at your prospects, remember why you took a job in sales in the first place. Spend a little time building that rapport, be confident, and then become their money doctor. Like any doctor, you need to see the problem before you prescribe a solution, but in this case you have a head start, you already know the problem – they want to change their car and they will need money to do it.
Ask the customer how they intend to fund the balance, and from now on in the conversation avoid all jargon and Three letter abbreviations (TLA’s) like the plague.
Ask the customer if they know about the Consumer Credit Act, and whether they would like the protection it offers. Tell them about Data Protection, and how your funding options give them full coverage, so their private information stays that way.
Explain what you can offer, the downsides, and the upsides of the products you have in your toolbox, and don’t be afraid to discuss insurance from the outset. So many customers are lost to the direct lenders because “ I can get payment insurance with the Bank”.
Confirm with them that your rate is fixed, no matter what happens to rates in the next few years, and at any time if they want to settle early, then they have the benefit of law demanding they get a rebate of charges yet to be paid on the agreement.
Finally, before you rush headlong into all of that, grab hold of your finance reps and rattle them for information on the other products you have access to, but don’t currently use. I have a dealer client who sells used cars only, currently enjoying a 54% finance pen, but almost 80% of all cases are leases, the reason why? He now understands the product, which has one key feature for him in particular – no APR on the doc.
If you or your team would like to know more, get in touch, we would be delighted to help you lift your finance pen. And your profitability.
DATED: 20.08.08
FEED: PTL
First off, if you have any doubts, fears or concerns about asking customers how they are going to fund their car purchase, then you have a problem. To get over this hurdle, remember that after a house purchase, this is typically the second biggest, and some would argue most emotive financial transaction that your customer will undertake, and the customer needs to have confidence in your ability to help them.
If your customer was buying a house, the first sensible question they will be asked is “have you got the money?” The question is the same for all other substantial purchases, caravan, motorhome, boat, briefcase full of illegal substances ( so I am led to believe anyway…).
So, short of doing a Jerry Maguire and shouting “Show me the money” at your prospects, remember why you took a job in sales in the first place. Spend a little time building that rapport, be confident, and then become their money doctor. Like any doctor, you need to see the problem before you prescribe a solution, but in this case you have a head start, you already know the problem – they want to change their car and they will need money to do it.
Ask the customer how they intend to fund the balance, and from now on in the conversation avoid all jargon and Three letter abbreviations (TLA’s) like the plague.
Ask the customer if they know about the Consumer Credit Act, and whether they would like the protection it offers. Tell them about Data Protection, and how your funding options give them full coverage, so their private information stays that way.
Explain what you can offer, the downsides, and the upsides of the products you have in your toolbox, and don’t be afraid to discuss insurance from the outset. So many customers are lost to the direct lenders because “ I can get payment insurance with the Bank”.
Confirm with them that your rate is fixed, no matter what happens to rates in the next few years, and at any time if they want to settle early, then they have the benefit of law demanding they get a rebate of charges yet to be paid on the agreement.
Finally, before you rush headlong into all of that, grab hold of your finance reps and rattle them for information on the other products you have access to, but don’t currently use. I have a dealer client who sells used cars only, currently enjoying a 54% finance pen, but almost 80% of all cases are leases, the reason why? He now understands the product, which has one key feature for him in particular – no APR on the doc.
If you or your team would like to know more, get in touch, we would be delighted to help you lift your finance pen. And your profitability.
DATED: 20.08.08
FEED: PTL
