What does it mean when an F&I customer comes into your office and they offer you less than you are asking
for your F&I products. For example, a customer comes into your office, you present your menu they
say wow that vehicle service contract does seem like a you know pretty decent option but i got
to be honest i think the true value of it is more around $1500 than the $2000 that you're asking so
i'll tell you what i'll take the Vehicle Service Contract but you have to do it for fifteen hundred
dollars. What is the customer telling you? When I ask a lot of F&I Managers, they tell me wellthe
customer's telling you that the vehicle service contract is only worth fifteen hundred dollars.
Nope! That's not what the customer's telling you. What the customer's actually telling you is
the vehicle service contract is worth three to four thousand dollars. Why is that? Let's
talk about that for a minute. We all like good deals! When we get a good deal on a car or an
appliance or a mattress we brag about it like - you can't believe this deal I got! No one ever says
"I was getting bamboozled the entire time, I knew it, and I still did it" - no one says that, we all like
good deals. In general, people spend their money on things, their dollars on things, that bring
them more benefit than those dollars can get them otherwise. For example when you go to an amusement
park and you pay thirty dollars at the admissions gate to get in, you are not expecting to get thirty
dollars worth of fun and then armed security guards pick you up and toss you out the door. No
you're expecting when you pay that thirty dollars to get a hundred dollars or more worth of fun you
are expecting to three times that investment and have a fun filled day that's worth a lot of money.
In general when people spend their money they want more benefit from the experience they're buying
than the actual money they spent. Let's bring that back to the F&I office, how does that relate? Well
the customer is basically telling you I want even more benefit, I see a lot of value in this, I see
three four five thousand dollars worth of value in this but instead of spending two thousand dollars
to get a 200 percent return, I want to spend $1500 and get a 300 percent return. I want even more of a return on my
dollars because I expect to get a good deal. So how and in which ways can you counteract that. Well
there's there's a few, but one way could be "Mr Johnson, I completely understand what you're
saying, you want a good deal. I love good deals too and if I were in your position I would probably be
making the same offer, but being in my position Mr. Johnson I can tell you that I see customers every day
- repeat customers who come back and they tell me how valuable that vehicle service contract was and how
they spent two thousand dollars on it and they got six seven eight thousand dollars worth of value
out of it and how they had a blown engine and it would have cost five grand to fix but the vehicle service
contract stepped in and paid it for them. Or how they had a blown transmission and it would have been $3,500
to fix but the vehicle service contract stepped in and paid it for them. Or how they had bad window regulators
and a bad dvd player and it had been $2500 to fix but the vehicle service contract stepped in and
paid it for him. Mr. Johnson they also tell me about how they were stuck on the side of the road they
did not have triple-A, but the vehicle service contract. It includes roadside assistance - They came and picked
them up. they towed it to the nearest repair shop, they fixed it, they got a rental car out of it...
They got way more value Mr. Johnson out of that vehicle service contract than they ever believed.
So I got to tell you Mr. Johnson that the two thousand dollars is a very fair price, don't you agree?
Yes? Fantastic Mr. Johnson, if you sign right there I'm going to go ahead and get your paperwork ready
and you'll be out of this dealership within five minutes driving your brand new car." It can be
as simple as that - Attack the objection head on by talking about all the people in the
past who DID purchase the vehicle service contract and got great value out of it.
Either way I want you to know this - When someone offers you less for your vehicle
service contract, your tire and wheel, for your exterior and interior paint protection
when someone offers you last they are not telling you it is worth less, they are telling you they
see the value. They see the value but they want to extend their dollar further - they want a good deal.
As soon as they tell you they'll offer you less, you know they are interested, you know they see the
value in that product, it's up to you to figure out a way for that particular person to close.
My personal way is what I just told you - talk about all the people before them who have come back
and spoke about the fantastic deal that they got by paying the two thousand dollars. "Those people
who came back Mr. Johnson, they said they would have paid three grand looking back it's worth
that good of a deal." And at that point the customers may say 'wow this is a good deal'
and they may still go home with their friends and family and say 'I got a GREAT deal on a vehicle
service contract, this thing will bring me seven eight thousand dollars worth of value possibly
and i only paid two grand for it' - It's all about changing the mindset. We hope
you learned something from this lesson, go ahead and click next lesson let's continue the course