Is the way that you're responding to customer questions in the F&I office
drastically lowering your PVR? I see this all the time with F&I managers. They receive a
simple little question from a customer and they interpret it as an objection and they get
defensive. They start drawing charts, they pull out pamphlets, they say well "Mr. Customer, you
would do it if I gave you a discount, right?''. Why? Just answer the question. A question is not
an objection. So now let's do an example here. "Now Mr. Johnson asked you Mr. finance manager,
why do I need a vehicle service contract?". He just asked you a question, he didn't give you an
objection. Great question Mr. Johnson. The reason you need a vehicle service contract is because you
want to make sure that your car is protected for at least as long as you have the loan.
You don't ever want to be in a situation where you're paying for both a car payment
and a large repair bill, right?". (Nod your head) "Mr. Johnson, your loan is for six years and Mr.
Johnson you also mentioned that you got a new job where you're gonna be driving a lot more for work.
Upwards of 20,000 miles a year. Well Mr. Johnson, the manufacturer warranty, the comprehensive that
covers everything, that is only 36,000 miles. So Mr. Johnson with you driving 20,000 miles a year
that'll be over in a year and a half. And a year and a half from now you'll be paying for
all the electronics that go wrong in that car. If the radio stops working that bill is going to
you. If the windows stopped working, that bill is going to you. If the backup camera has an issue,
that bill is going to you. Mr. Johnson not only that but even the powertrain warranty
is only 60,000 miles. At 20,000 miles a year Mr. Johnson you're going to go through that in only
three years, and three years from now you will be responsible for anything that happens to the
engine, transmission, drive axle or anything else on the car. Mr. Johnson that doesn't seem like
a very good risk. You just answer the question that's why you need the vehicle service contract.
What if they ask why do you need tire and wheel? I don't understand why I need it, can
you explain it to me. Absolutely Mr. Johnson I'd be happy to explain why you need tire and wheel.
In fact just the other day I was driving home from work and I hit a pothole the size of mars!
No it really wasn't the size of Mars, Mr. Johnson, but it sure felt like it when my entire front end
of the car went boom right into that pothole. When I pulled the car out and I started looking at the
tire and rim and I was like wow. All the dings and dents and nastiness it looked nothing like
the car I just spent a lot of my hard earned money on. I knew I needed a fix. I knew I needed to get
that taken care of. So Mr. Johnson what did I do? Nothing because guess what? I have the tire wheel
protection. The tire wheel protection took care of it for me at no cost to me not even a deductible.
That's why you need tire and wheel Mr. Johnson. You know the roads around here, especially when
you're driving around at night. You may not see that pothole and boom, you're in it.
Thousand dollar bill. But you don't have to take that risk because guess what? You have
tire and wheel. That's why you need it. You're just simply answering questions right you're not
doing objection handling you're just answering questions that explain what the customer needs
to know. Let me explain something to you. There's a difference between a question and an objection.
An objection is going to try to stop you from talking. It's going to try to stop you from
moving forward. For example, when a traveling sales person comes to your door
and they're trying to sell you whatever product that you know that they have to offer and you're
not interested in that particular product, you're not going to say "You know what?
I need to ask more questions I need to get more information from you". No you're going
to try to give them objections that get them to move on to the next door, right?
When a customer is asking you questions, they're asking you questions because they're interested
in what you have to sell. Don't take it as an objection until it actually is. An objection
is telling you something that gets you to go away, such as "No, I need to talk to my wife about it"
"No that really wouldn't benefit me". Those kind of things are getting you to go away.
They're not asking you for more information. Well we hope this video was helpful to you we
hope this training was good for you. This is Ryan from Finance Manager Training studios in New York.